Having one’s home foreclosed is a serious event with long lasting effects on one’s credit history and credit reports. Consequently, any consumer facing a foreclosure should consider if a short sale may be a better option.

Firstly, one should know the results of having a house foreclosed. One of the most dramatic, results of a foreclosed house is that the lender, who initially loaned money to the consumer to purchase a house, or the mortgage loan provider, will eventually take the house back. This obviously means that the consumer must move out and find another place to live. Additionally, a foreclosure has a devastating effect on one’s credit. Having one’s house foreclosed means that the borrower was not able to make the monthly mortgage payments initially agreed upon. Although the consumer may find his or herself facing foreclosure due to the accumulation of unforeseeable expenses, such as a death in the family, a job layoff, a tragic accident, or a serious illness, one’s financial obligations remain intact and future lenders may still view the foreclosed consumer as an irresponsible or risky borrower. Future extensions of credit may be nearly impossible even though desperately needed to get oneself out of his or her financial black-hole. To make matters worse, even after a consumer’s house has been foreclosed, the lender may still come after the consumer for the cost of executing the foreclosure actions. The lender may pursue the latter payment through the court system in the form of a judgment, which in itself will have a hampering affect on the consumer’s credit history. In summary, foreclosure is an event that consumers should try to avoid at any and all costs.

One option a consumer should consider prior to settling with a foreclosure is a short sale. A short sale is when a consumer sells his or her house to a third party buyer for less, or for short, than what is owed to the mortgage lender. Of course, in order to carry out a short sale, the consumer must have the mortgage lender’s permission to do so. Consequently, time is of the essence with short sales. A lender may be less and less likely to agree to a short sale the farther behind a consumer is on his or her mortgage payments. Therefore, it is recommended to seriously consider and pursue a short sale the second the consumer realizes that he or she will not be able to catch up on his or her mortgage payments.

Additionally, it is extremely advisable to not undergo this process alone. Consumers should immediately seek the advice of professionals once they realize that they are behind on their mortgage payments and most likely will not recover in the future. Consumers should utilize a real estate agent with plenty of short sale experience with ties to a reputable law firm to aid in his or her short sale negotiations. The law office of Smith & Gromann, P.A. works hand-in-hand with short-sale experienced real estate agents. If you are looking to stop your foreclosure and/or are seriously considering a short sale, you may call the Creditlawgroup toll free at 1-800-339-6701.