The Credit Counselor told me to choose foreclosure said the Would be Seller

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

Oh golly gee whiz....we consulted with a....oh surprise...divorcing couple about selling their property.  It was under water through no fault of their own...a nice property but just not commanding the mortgage balance upside down houseowed.  Both had excellent jobs and retirement accounts that dividing the deficiency would have paid off the mortgage and each would be free to go on their way and begin a new life as a single person.  They did not qualify for a short sale....and thus our advice at the request of their attorneys.

    Seek the highest and best...which one member of the couple determined was a credit counselor....sounds logical....and adviccredit counselinge you probably pay for always seems like the best thing to do.

    The "Counselor" told the homeowner by all means...choose foreclosure....Pardon me ?  What kind of advice is that ?  Welll.....credit score was not great so what if it got worse....no down payment now..therefore no immediate threat of not being able to buy another home.

   We knew the credit score and finances....within a year with some effort she could get on top of both situations...begin to re-build her life...and the one really HUGE to our minds...detail that the credit counselor "forgot"...there is no guaranty that the lender....since either could afford the payment...will not pursue the deficiency. The deficiency can include the difference between what the ultimately foreclosed property nets the lender and what was house on moneyowed ...Holy Moley....that is a chunk of change...and a foreclosure that will take a while to recover from as well !

    Credit counselors don't need "credentials" ...licenses...just the ability to charge for their finforeclosureancial advice....Yicks !

    Choose foreclosure...what a choice !  Wait until....you go to get a loan...you wish you could buy but cannot...interest rates for anything increase....call the "Credit Counselor" and ask the best way to cope with all this additional debt.   So now.....besides ruining credit and adding foreclosure....keep looking over your shoulder to see if the lender is pursuing the deficiency...Golllly !

     You can't save everyone from their choices of "highest and best"....all you can do ....and we feel MUST do is give them ALL the information they need to make the best possible decison.  IF these are the kind of Realtors you feel you want to represent you...Call the Hansons...we are honored to be of service.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 11/26/2016 11:55 PM
Topic:
Home Selling
Tags:
choosing foreclosure
bad credit counseling
ruining credit
lenders pursue deficiencies

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Ambassador
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Foreclosure is sometimes the best option - in this case, that doesn't sound right, and that deficiency is something people rarely consider.  Always tough to see folks in predicaments like this.

Nov 23, 2016 12:21 PM #26
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Sometimes an opinion can kill and at the least harm you....

Nov 23, 2016 12:52 PM #27
Rainmaker
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Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

In Hawaii the lender can proceed with a deficiency judgment and some do.

Nov 23, 2016 02:52 PM #28
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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Sally and David credit councilors can create more problems then they solve.  Credit councilors tend to be very short sighted and not look to the impact their advice can have on the future.

Nov 23, 2016 04:32 PM #29
Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

That foreclosure route probably sounds like a good out in the short run. But long-term, I imagine it will not work out well for them.

Nov 23, 2016 05:56 PM #30
Rainer
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Thomas McCombs
Century 21 HomeStar - Akron, OH

It is the old issue of "how do you know if the advice you are getting is really the best advice for you?"

Where did this counselor come from? Was s/he part of a recognized professional

organizaton?

Nov 23, 2016 06:37 PM #31
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
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The banks and how they handle these situations never cease to amaze me with their stupidity. 

Nov 23, 2016 06:58 PM #32
Rainmaker
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Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

I was wondering the same thing as Thomas McCombs! Where did that counselor get their licenses?

Nov 23, 2016 07:28 PM #33
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Diana Zaccaro
Veterans Realty of Brevard - NOT just for Veterans! - Cocoa Beach, FL
Your Brevard County, Florida coastal connection!

You can't fix stupid...I learned a long time ago that just because someone is licensed, it doesn't guarantee they know what they are doing. I once had a CPA tell me that if one of their clients has a lot of credit card debt or is underwater on their mortgage, they advise them to file bankruptcy! Lost a good client because the person followed that advice!

As Thomas McCombs mentioned, I am also curious about where they found this "credit counselor" and if that person was associated with a nationally accredited credit counseling organization. There are legitimate credit counseling companies, the best are 501(c)3 (non-profit) and counselors must go through training and pass the certification exam. The NFCC is probably the oldest and best known.

 

Nov 23, 2016 08:07 PM #34
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Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
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Congratulations on your featured article. We are looking forward to the next one.

Nov 24, 2016 05:08 AM #35
Rainmaker
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Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Doing what you think helps but oh oh, should not have... lots of that happens in life, in real estate Sally K. & David L. Hanson !

Nov 24, 2016 08:10 AM #36
Rainmaker
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

You don't need a license to be a credit counselor, but you need a license to do balloon art or cut someone's hair. What a crazy system! 

Nov 24, 2016 10:32 AM #37
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Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Without knowing all the details and the time horizons of each spouse's financial stability, cash flow, and recovery plan, it wouldn't be prudent to reach any conclusions, yet, if the credit counselor secured the necessary details and information, recommending foreclosure might very well be the best solution. 

I would recommend securing another opinion before taking action, however, I've found that divorcing couples rarely cooperate to mitigate solutions to ease any financial pain, don't you? 

Nov 24, 2016 12:50 PM #38
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You would be better off seeking the advice of an attorney for bankruptcy becasue that would be the next step, so why not just pass go?

Nov 24, 2016 08:06 PM #39
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I am just wondering how one can become a credit counselor. I am not looking to become one

Nov 25, 2016 01:04 PM #40
Rainmaker
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Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

I'm saying a short was the way to go unless each one could afford the mort on their own.

Nov 25, 2016 01:11 PM #41
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It is amazing that the people that are sought or advise give so with no professional training and no one to hold them accountable.

Nov 26, 2016 06:32 PM #42
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Sally and David, I included this post in today's Last Week's Favorites.  Hope you enjoy the rest of your weekend!

Nov 26, 2016 11:01 PM #43
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Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Holy Moly!  I hope they seek the advice of someone else, a second opinion, before making that drastic decision.   Sometimes you just shake your head. Good thing they have you on their side!

Nov 28, 2016 07:47 PM #44
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
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Oh, good LORD. This kind of thing just makes me want to go kicking and screaming to someone and say, "This isn't RIGHT! hOW DARE thEy??" (I did the caps on purpose, just to show you how crazy so-called "experts" can be...). One can only hope that they had enough sense (she) to follow your recommendations. 

Nov 28, 2016 08:03 PM #45
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce - Short Sale
For All Things Wisconsin Real Estate...Call the Hansons
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