Homeowners throughout our country are experiencing difficulties that they would never have anticipated a few years ago.  Many have lost jobs or taken substantial pay cuts that leave them struggling to meet their mortgage payments each month.  As they become more overwhelmed & discouraged, it is difficult to believe there is a solution short of bankruptcy and foreclosure, but there are other options!  And we can help homeowners explore those options - loan modification, repayment plans, "help for homeowners" plans.  If these are not feasible, a homeowner should still consider a short sale before he just "throws in the towel" and walks away.  Consider the difference in long-term implications:

Foreclosure: Can lower one's credit score by 200 points or more;

                   Remains a public record and on credit history for 7 years;

Fannie Mae guidelines state that, after a foreclosure, borrower cannot be considered for a loan for 5 years.  For years 6 & 7, the borrower must have a 685 Fico score & 10% down payment;

Short Sale:  May possibly only lower credit score by 50 points;

                   Avoids a bankruptcy & foreclosure on one's record;

Fannie Mae guidelines state that, after a short sale, borrower can (if he qualifies) apply for any Fannie Mae loan products after 24 months;

Needless to say, this is not a simple process, no matter what route one chooses & we encourage you to seek the help of professionals as you work through the process.

 At the other end of the spectrum, UNCLE SAM IS GIVING AWAY MONEY, but time is running out!  This is an incredible opportunity for 1^st time homebuyers to receive an $8,000 tax credit if they put a home under contract by April 30, 2010 and close on the home by June 30, 2010.  Buyers who have lived in their previous home for 5 of the last 8 years qualify for a $6,500 tax credit if they purchase & close by those same dates. We cannot expect this offer to be extended, so if you know anyone who might want to take advantage of this "gift from Uncle Sam", tell them to call me!