olorado Springs Short Sale - Option to Foreclosure.
A comparison of the impact of short sale vs. foreclosure
The scenario: A homeowner loses their job; they fall behind on just one house payment. In Colorado Springs, the lender may opt to file a Notice of Election and Demand or "N.E.D."-- essentially starting the foreclosure process. Within an average of 5 months or sooner, the homeowner could face eviction from their home.
It's estimated that 1 out of every 5 households in Colorado Springs is facing some sort of hardship such as this. A job loss, death of a breadwinner, a serious illness, divorce, etc. may all cause the same outcome: the inability to make the monthly mortgage payment. To compound matters, many homes have lost value due to declining prices and therefore - if put up for sale - might not bring enough to pay off the existing balance of the mortgage when sold.
Option to Foreclosure: Short Sale
A short sale is basically where a lender agrees to approve a contract for the sale of a home which will net same lender less than what is owed. The implications are not as negative as a foreclosure and that's the purpose of this blog: to let Colorado Springs homeowners know that there is a better option than foreclosure.
Some homeowners might be under the false impression that a foreclosure will result in the bank taking back the home with minimum negative implications to their credit but not much more.
To the contrary, a foreclosure - and not necessarily a short sale - can impact security clearances, current employment, future job opportuniti
es, future home purchase opportunities, rental opportunities, credit history, credit score, and much more.
In Colorado Springs it is truly worth exploring the short sale option as it will have much less of an impact on these and other areas of the homeowner's life. For more information on the impact of both options: short sale and foreclosure, see my page entitled - foreclosure vs. short sale and please feel free to contact me at jkulka@remax.net
Briefly in closing, to qualify for a short sale, a homeowner must jprove a valid hardship to the lender. Additionally, negotiations are usually required to appease junior lien holders and any other "clouds" on the title of the property. There are some distinct challenges to say the least.
But a properly trained professional will be able to prepare, negotiate and submit the complete short sale transaction package. I am trained and certified as a CDPE - Certified Distressed Property Expert and that means I will help with your Colorado Springs short sale campaign.
Buyers, sellers or investors needing more Colorado Springs short sale information may contact me at jkulka@remax.net or direct at 719-357-1679.
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