Facing Foreclosure? Is a Foreclosure or a Short Sale a Better Option?

The first thing you want to find out when faced with the possibility of having a Tallahassee foreclosure property is what are the foreclosure options or alternatives available to you. Then you want to decide what the best course of action is for your Florida home so it doesn’t become a Tallahassee REO. This is where the assistance of a knowledgeable Tallahassee REALTOR comes in handy. We will help explain your options and also determine if a foreclosure is best or if a short sale is the better way to go.

Exploring the Option of Short Sales in Tallahassee, FL

First off, you probably want to know what a short sale is.

A short sale is when a property is offered for sale for less than its value. The lender must agree to short sale a property and a detailed process must be followed.

For a Tallahassee short sale to become an option, the homeowner must be in a distressed state (means being delinquent in payments and the property is usually facing foreclosure). A detailed set of documents will need to be completed to prove the Florida homeowner cannot continue making mortgage payments (and a hardship letter, which explains the cause of the financial distress, is usually required).

An effort must have been made to list the home on the FL housing market at its full market value with a thorough report of the sales activity during that time. If a short sale is approved by the lender, a serious buyer makes an offer and a set price is agreed upon by all parties involved, then the sales process would continue as any normal sale.

Much of the time the lender pays the seller’s required fees and commissions. The Tallahassee homeowner may get to walk away owing nothing, but they cannot walk away with any proceeds from the sale of their Florida property. The entire short sale process usually takes between 3-12 months. At the time, my help, as an expert Tallahassee REALTOR with short sale knowledge, can be invaluable.

The Option of Foreclosure in Tallahassee, FL

If you are facing a financially tough time where it is too difficult to make your monthly mortgage payment, you may be facing a Tallahasse foreclosure. A foreclosure will leave you with the absolute worst possible credit rating. The biggest way to damage your future and credit standing is to undergo a foreclosure in Tallahassee, FL. If you are a homeowner of Tallahassee foreclosure properties, you will:

• Lose about 300 basis points on your credit score
• Have a foreclosure on your credit report for 10 years or longer.
• Have difficulty in getting approval for new credit to purchase a car, receive student loans or even be accepted to rent an apartment
• Possibly lose your present job
• Possibly have problems seeking future employment (many job applications ask if you have ever had a foreclosure)
• Have a hard time getting a decent rate to purchase another home (all mortgage applications ask about former foreclosures)
• Have to answer YES to foreclosure on any form asking the question for the rest of your life
• Lose your security clearance immediately if your job requires it (such as military, police, airport, cashiers and the banking industry)

No Matter the Option, You Need Reliable People on Your Side

Making this process easier to understand is what we are here for. You will benefit by contacting us, the expert team of Tallahassee real estate professionals at Coldwell Banker Hartung and Noblin, Inc. We are here to help guide you every step of the way. The team is just a click or call away.