Distressed property, short sale and foreclosures are all terms we frequently read and hear these days. What exactly do they mean and what options do you have if you find yourself in a difficult situation.

Distressed Property - is more accurately a distressed homeowner. There is often nothing wrong with the property. The term is used when a homeowner is in default with their mortgage, in some stage of a foreclosure or opting to sell as a short sale. As a Certified Distressed Property Expert (CDPE), I am committed to helping people avoid the first two of these scenarios.

Short Sales  - are a viable alternative for a home owner who has suffered some form of financial distress. The good news is that mortgage companies are now seeing short sales as a preferred alternative over a foreclosure. As a homeowner, there are some specific requirements that you need to meet to proceed with a short sale. A short sale can allow a homeowner to move forward with dignity, recover quicker and many times with less credit damage. If you or someone you know is experiencing or may soon be experiencing a financial hardship that has their home at risk please give me a call so we can discuss the options they have available.

Foreclosure - is the process a mortgage holder (lender) uses to recover a property when the homeowner is in default on their loan, default simply means behind in your payments. Once the process has began a homeowner has certain rights to bring the loan current but these are governed by strict timelines and laws. If a homeowner is unable to bring the loan current, the public trustee is required to sell the home at auction.

A homeowner in distress cannot completely avoid some negative impact on thier credit scores. A short sale, if initiated early and handled by a Certified Distressed Property Expert, can in many cases help the homeowner avoid the stigma, credit damage and long-term financial impact a foreclosure carries.