Short Sale vs Foreclosure: The Children

by The KCM Crew on July 30, 2012

This week, we have looked at the advantages of a short sale over a foreclosure from five different perspectives: Sellers’, Neighborhoods’, Banks’, Prices and the Children. – The KCM Crew

We were recently troubled by the findings of a research paper authored by Julia Isaacs of the Brookings Institute for the organization First Focus which was titled The Ongoing Impact of Foreclosures on Children. In the report, Ms. Isaacs quantified the number of children that have been impacted:

• 2.3 million children have already lost their homes to foreclosure
• 3 million additional children are at risk of losing their home

She also noted the four ways foreclosures may affect children negatively:

1. Families receiving foreclosure notices are much more likely to move than other families. Children who move frequently do less well in school.
2. Homeowners receiving a foreclosure notice are under a lot of financial and psychological stress. Parents under financial distress sometimes engage in harsher and less supportive parenting. This can lead to negative behaviors on the part of children, making it harder for them to interact well with peers and in school.
3. Foreclosures have a negative impact on physical as well as mental health, with studies finding higher rates of non-elective visits to emergency rooms and hospitals in ZIP codes with the highest foreclosure rates.
4. Children living in or near foreclosed homes may suffer the consequences of living in neighborhoods with more vacant houses, higher crime rates, lower social cohesion, and a lower tax base.

The Official Journal of the American Academy of Pediatrics just published a report on the impact of the housing crises on child abuse. Their conclusion:

“Multicenter hospital data show an increase in pediatric admissions for physical abuse and high-risk traumatic brain injuries (TBI) during a time of declining all-cause injury rate. Abuse and high-risk TBI admission rates increased in relationship to local mortgage delinquency and foreclosure trends.”

If you find that one of your clients is at risk of foreclosure, explain their options. The new National Mortgage Settlement might give them a pathway to stay in their home.

You can get information on the opportunities the settlement offers here.

However, if they have exhausted all their options and now must decide between a short sale and foreclosure, help them analyze what is the best decision for themselves and their families.
In most cases, a short sale will be the better option for them and their children as they will be able to have some control over the moving date and the move itself. This will create a level of dignity in the move that will alleviate some of the pressure on the parents and as a result lead to more effective parenting.

If you are seriously thinking of buying or selling, or just plain curious to see what’s happening in your area of interest, start your search at the best real estate website www.DistinctiveHomes-NE.com

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com

Short Sale vs Foreclosure: The Banks

by The KCM Crew on July 26, 2012 ·

This week, we are looking at the advantages of a short sale over a foreclosure from five different perspectives: Sellers’, Neighborhoods’, Banks’, Prices and the Children. – The KCM Crew

The banks are beginning to favor offering a short sale to distressed homeowners rather than foreclosing for several reasons:

• The short sale sells on average for $27,000 more than a foreclosed property.
• The bank does not have to take on the expenses and maintenance of a vacant home in a short sale.
• The banks realize a vacant house impacts the values of other homes in the area thus devaluing assets that they may also hold a mortgage on.
• Some courts have questioned whether the foreclosure process was correctly followed on some homes. This could place a cloud on the title of such homes. In a short sale, there are no title challenges as the original seller signs away title at the closing.

It is for the above reasons that bankers are beginning to favor short sales over foreclosures.

Tomorrow, we will look at the impact of a short sale compared to a foreclosure on prices.

If you are seriously thinking of buying or selling, or just plain curious to see what’s happening in your area of interest, start your search at the best real estate website www.DistinctiveHomes-NE.com

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com

Short Sales vs Foreclosures: the Seller

by The KCM Crew on July 24, 2012 ·

This week, we are looking at the advantages of a short sale over a foreclosure from five different perspectives: the Sellers’, the Neighborhoods’, the Banks’, Prices and the Children. – The KCM Crew

Real estate professionals are handling an increasing number of distressed properties. Which is a better alternative for the seller – short sale or foreclosure? Here are the advantages of doing a short sale:

It allows a more dignified exit from the home.

In a foreclosure, an official eventually comes to the home and tells the occupants to leave – immediately. In a short sale, the seller knows the closing date and can prepare in advance for the move. In many cases, their neighbors, friends and family needn’t even know of their financial difficulties.

The seller could possibly avoid a deficiency judgment.

In almost all distressed sales, the bank can legally go after the seller for the difference between the loan amount and the selling price (known as a deficiency judgment). Most banks will release the seller from this obligation in a short sale process.

[Read full article...]

If you are seriously thinking of buying or selling, or just plain curious to see what’s happening in your area of interest, start your search at the best real estate website www.DistinctiveHomes-NE.com

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com