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 owed. 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 advice 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 owed ...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 financial 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.