Are You Facing Foreclosure?

We Can Help!

Keith Cook is a Certified Distressed Property Expert. There is a way to help stop the foreclosure of your home. It is through a process called short sale.

Short Selling is the process by which a property is sold for less than what is owed. To qualify you must be in some type of financial distress which is causing, or will cause, you to stop your mortgage payment.

"Keith helped us in a very difficult situation, he knew all the right people to help us with our questions and our problems. The office he works out of are very dependable and very helpful. We appreciated them all..."

The differences between a short sale and a foreclosure are vastly different. The difference includes the affect on your credit score, employment and also your security clearance.

When it comes to your home I understand! Please call today for a free consultation about your property. I am fully trained on the short selling process and am eager to help you avoid foreclosure.

If you are interested in searching for short sale or foreclosure listings in Whatcom County, do not hesitate to contact Keith Cook. Whatcom County Real Estate opportunities are available now! There are ways out of foreclosure on your home. Selling your home as a short sale may be the right option for you. Do not wait till it's too late to find if the short sale option is the option for your home and your family to remain out of foreclosure.

I can help you today. Call me at: 360-739-5600

WHAT IS A CDPE?

Certified Distressed Property Expert

An agent who has earned the CDPE Designation has dedicated their time and effort to understanding the issues distressed homeowners are dealing with.

The CDPE Professional is an agent who understands the full range of solutions and is ready to help.

While experiencing financial distress is difficult for any family, the process of finding a real estate professional shouldn't be. Selecting a CDPE agent ensures you are dealing with a professional ready to address your needs.

Keith Cook 
Let Me Help You Avoid Foreclosure Today!

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Keith Cook: 360-739-5600
RealEstate@BuyerMax.com
RE/MAX Whatcom County
913 Lakeway Drive
Bellingham WA 98229

SHORT SALE VS. FORECLOSURE

Issue

Foreclosure

Successful Short Sale

Future Fannie Mae Loan
(Primary Residence)

A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances.

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage within 2 years.

Future Fannie Mae Loan
(Non Primary)

An investor who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances.

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage within 2 years.

Future Loan with any
Mortgage Company

On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed-in-lieu thereof in the last 7 years?" This will affect future rates.

There is no similar declaration or question regarding a short sale. FHA – If current at the close of short sale, a homeowner may apply for an FHA loan immediately. If homeowner is late before close of short sale closing, will be eligible for FHA loan after 3 years.

Credit Score

Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.

Only late payments on mortgage will show, and after sale, mortgage is normally reported as "paid as agreed," "paid as negotiated," or "settled." This can lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record on a person’s credit history for 7 years or more.

A short sale is not reported on a persons credit history. There is no specific reporting item for "short sale." In most cases a loan is typically reported "paid in full, settled" or "paid as negotiated."

Security Clearances

Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police or security officer, in the military, in the CIA, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.

On its own, a short sale does not challenge most security clearances.

Current Employment

Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.

A short sale is not reported on a credit report and is therefore not a challenge to employment.

Future Employment

Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.

A short sale is not reported on a credit report and is therefore not a challenge to employment.

Deficiency Judgment

In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.

In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.

Deficiency Judgment
(Amount)

In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

SHORT SALE: Help Avoid Foreclosure!

A Short Sale is an "arrangement" between the current owner of a home and the bank that lent them the money to buy their home to accept an offer for less than the total amount owed to pay off the home. The "deficiency" is the difference between the amount owed and what the bank collects at the short sale.

Most short sales arise when a seller owes more on their house than they can sell it for. The owner of the home then attempts to make an arrangement with their lender to sell the house for less than is owed. For it to be a Short Sale, someone must be getting "shorted." Either the seller, or the bank.

Despite popular belief, you DO NOT HAVE TO BE BEHIND ON YOUR MORTGAGE TO REQUEST A SHORT SALE. You just have to demonstrate that your house cannot be sold for what you owe.

Contact Keith Cook at 360-647-1313. As Certified Distressed Property Experts they can help you avoid foreclosure, and potentially keep you in your home! Let us help prepare you for your future.

FORECLOSURE

Foreclosure is the procedure by which a party who has loaned money secured by a mortgage or deed of trust on real property forces the sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, after the debtor fails to make payment.

If the delinquency and costs of foreclosure are not paid within this time, then the lender (or the trustee in states using deeds of trust) will set a foreclosure date for selling the property at public sale.

There is also judicial foreclosure which is used in several states with the mortgage system or in deed of trust. This procedure is used when the amount due is greater than the equity value of the real property, and the lender wishes to get a deficiency judgment for the amount still due after sale.*

Foreclosure not only destroys your credit, you also could lose your security clearance, job and be affected for jobs in the future!

Foreclosure Process

  1. Loan Originates
  2. Borrower falls behind in payment
  3. Lender attempts to correct with notices, letters and telephone calls.
  4. Debt gets further in arrears; lender decides to foreclose on the property
  5. Bank's attorney files foreclosure action with the county clerk or recorder's office.
  6. Notice of default lets people know the foreclosure is pending.

Foreclosure Options

  1. Sell the property
  2. Get refinancing. Owner generally needs 30% equity to do this.
  3. Raise own funds

Tips to Prevent Foreclosure

  1. Be proactive. Contact your loan servicer immedietly
  2. Consider refinancing your loan.
  3. Talk to a housing counselor. HUD approves trained counselors to work with not for profit focused on preventing foreclosure.
  4. Get in touch with your local government agencies. *May offer programs for people having trouble making their mortgage payments
  5. Notify your other creditors. *May be able to lower interest rates on your credit cards or consolidate other loans.
  6. Create a budget.
  7. Re-read your mortgage agreement. *Understanding is critical.
  8. Talk to a lawyer if you think you may have been a vicitim of predatory lending.
  9. Beware of anyone who says you don't need a real estate professional or title company when selling your home.
  10. Do not sign over the deed to your property to any organization or person if you are not working directly with your lender to get your debt forgiven.
     
 
* Reference: uslegal.com


Keith Cook | 360-739-5600 Sally Webb | 360-224-1270 
RealEstate@BuyerMax.com 
Contact Us

RE/MAX Whatcom County, Inc. 
913 Lakeway Drive - Bellingham, WA 98229

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