If you or someone you know is facing foreclosure there are some things that you should be aware of.  Firstly foreclosure should not be considered an easy way out because by no means it is not.  These days a lot of people honestly cannot afford the homes they are in for one reason or another.  What strikes me as odd is that years ago the word Foreclosure was a bad word.  Something to be shunned and not really discussed, much like bankruptcy used to be.  Now though it almost seems that more and more people are becoming comfortable with the idea and almost accept it as a part of the process.

The truth is that foreclosure is not a requirement for individuals that are struggling with payments.  Those that recognize the issues and act upon them early on can stop foreclosure and perhaps even save their home.  The main option in this idea is to explore a Shortsale.  A shortsale mainly consists of the bank in which the loan is from allows the owner to sell the property for less than what is owed on the loan.  The difference between the sale amount and what is owed is called deficiency.  Sometimes this deficiency can be forgiven and sometimes it cannot.  It really depends on the situation and the bank. However, a Shortsale is a better option than a foreclosure.

If you are facing foreclosure here are some things to keep in mind. A foreclosure dramatically affects your credit…period.  This is definitely a scar on your credit report and often with be stuck there with you for at least 7 years. Your credit cards may be cancelled as well at anytime and without warning.  Your job may be affected as well if you are employed in a field that requires security clearance and a good credit score.  If you are not employed then a foreclosure can also be a factor in preventing you from getting a job.  More and more employers are using background and credit checks to screen possible employees. Securing new or additional credit will be exceedingly difficult and interest rates will be extremely high for a while.

This is not to scare people, but to rather ask those in this situation to act early and appropriately.  If you know you are at risk, start asking questions.  Believe it or not, your Realtor is often familiar with this type of situation and some Realtors are experts.  They can point you in the right direction and advise you on which route you should take.  It is important to be educated on your options and not sit idly by while the train gets closer and closer.  You may be able to stop the train or at least change tracks.

Tim Brown
Owner/Broker, Realtor®, ABR,CRS,CDPE®
Auctioneer NCAL#8560
Hines & Associates Realty
TeamHeidi
Direct Line: 704-619-1008
Client Care Line: 704-815-3208
www.CarolinaHomes4Sale.com