Yolanda Bailey, CDPE

Today many homeowners find themselves upside down in their property and in financial hardship due to a challenging economy. They are uncertain as to what to do, and realize they cannot maintain the monthly payment for a home that is worth less than the actual loan balance. Some have turned towards a loan modification, but unfortunately a great number of homeowners who apply will not qualify. Are there any helpful answers to resolve this foreclosure situation? Some who need to sell property which has de-valued are doing a Short Sale instead of a foreclosure.

A Short Sale is the ability to sell the home for the fair maket value with the bank's approval, yet the bank accepts less than what is owed on the mortgage and the foreclosure is avoided if the property is sold.

A number of homeowners are turning to Realtors and Certified Distressed Sales Property Experts, (CDPE) to faciliate a Short Sale. One of the criteria a Bank looks for is a valid hardship. A seller's hardship can be due to one or more of the following reasons: unemployment, reduction in job hours, death of a spouse, decline in business if self-employed, a medical or recent disability or illness, relocation, military obligations, and divorce.

In a Short Sale you cannot walk away with any monies from the sale, but are generally free from the "non-recourse" debt against the property.

A Short Sale is not like a Foreclosure. A foreclosure is detrimental to ones credit score. A Short Sale is not reported on a credit report as a Short Sale but is usually reported on a credit report as "Debt Settled" which is generally less damaging to one's credit. In most cases, your recovery time to purchase a future home is also less than a foreclosure.

You can salvage your future, if you act within a reasonable time; remembering, the situation will not go away on its own. Timing is critical, be proactive -- take action.

Some commonly ask questions are: How long could this process take? What information will I need to submit to find out if I qualify for a Short Sale? The choice is yours.