There are many homeowners in Western Massachusetts who for a variety of reasons have fallen behind on their mortgage and are in a distressed home sale situation. Whether it is divorce or job loss or just a need to move, there are lots of people who need to sell their home, but fear that they can’t sell their home for enough to pay off the balance due to the lender.

Oftentimes these folks allow their fear to prevent them from asking for help or making proactive steps to work with their lender on a solution. Here are some tips that can help if you or someone you know is in a distressed home sale situation.

—Don’t ignore the lender’s efforts to contact you. Yes it is difficult to speak with them, open the mail and handle this terrible time, but sticking your head in the sand will not change what is happening. Staying in touch with the lender can help to gain some time that you can use to resolve the issues one way or another.

—-Call in the professionals. A good real estate agent with short sale, foreclosure and distressed sale experience is a priceless asset to you right now. They know what steps need to be taken and will act as your counselor and advocate.

—Speak with an attorney. There are attorneys in the area who specialize in helping with short sales, loan modifications and foreclosure delay. Reach out and ask questions.

—Don’t wait. If you are a candidate for a short sale it can take some time and the lender will not allow the time for you to try to accomplish the sale if it is too close to the foreclosure/auction date is.

This is a scary and stressful thing, there is no way around that fact, but you can move past this time.

Walking away from your mortgage has serious credit impact that is difficult to recover from not to mention the stigma and personal disappointment that foreclosure entails. Loan modifications and short sales can help you to move on and experience a much smaller credit impact.

Reprinted from my Masslive.com blog. See more from that blog here.

This week an article on foreclosures and short sales came out that even I found shocking. Walking away from your home and allowing foreclosure may not be the end of your mortgage obligation.

The article went on to caution that selling your home via short sale does not automatically absolve you of the debt, either. This I did know, but realized upon reading the article I have never shared this important fact with my readers.

Short sales go something like this (although each one is very unique):
#1- you go into a default position with your mortgage by missing at least one full payment cycle.
#2- you list your home aggressively for fair market value with an agent that understands the short sale process
#3- you contact your lender and stay in communication regarding the status of the listing
#4- you hire an attorney who specializes in short sales
#5- you present offers to the lender for their approval
#6- the lender approves (you hope) the short sale and the house is sold
#7- IMPORTANT: Your attorney should get a signed release of financial obligation from the lender
#8- you move on to rebuild your credit

Step seven, if missed, can mean that the lender will come after you at a later date for the shortfall between what you owed and what the property was sold for. Be sure to discuss this issue with your attorney BEFORE the closing happens!

If you need help with a distressed situation like foreclosure or short sales, I am here to help with empathy and knowledge to give you a helping hand.

Last year I decided to work as a home retention consultant. This was one of the most difficult things I had ever taken on because I was going to have to show up unannounced and knock on the doors of people who were in pre-foreclosure and in danger of losing their home.

Not the most comfortable feeling, but since I had just been through the process I knew that I could help people if I got over my fear of knocking on doors.

Day one arrives and I pull up to the first house. I steel myself with reassurances that I have a service and a will to help. The nerves don’t subside, but I find the strength to knock on the door.

The woman that comes to the door is a beautiful, petite latina and is obviously not expecting me. She meets me on the porch and as I explain to her why I am there and what I hope to help with-she starts crying. The story that I hear includes a cheating husband she is kicking out, an attempt to finish her college degree, a tenant that doesn’t pay rent and all of this is her secret.

We make an appointment to fill out the loss mitigation paperwork and she reaches out to hug me. I have to paraphrase, but she said something like: “I will always remember this day and the way you looked when you showed up to help. You are my angel.”

Inflated and excited by the success of my first stop, I head to my next home.

This time I am met by a short middle aged man with lots of tattoos and a military buzz cut. I begin by explaining that I have an already designated loan modification that will reduce his principle, reduce his rate, restart the loan with no foreclosure and knock $600 a month off the payments. He responds with a tirade and the words “shotgun, burn the *&#()0($#’ing house down and they will have to get me first”.

He tells me to leave and I say that I am sorry I couldn’t help. I head back to the car to program the GPS and I see him heading towards my car. NOW I am nervous as can be. I roll down the window a half inch and let him talk.

He apologizes: I am collateral damage after he has spent countless hours on the phone trying to resolve his issues. He says, “I am sure I am the last person you would want to help after my outburst, but if you would accept my apology and come in, I sure would appreciate that.”

An hour, a pile of paperwork and a phone call later and his loan modification was in process and his house saved.

Every door is answered by a new story, but they are all so real and they all need help. These are two of the families that will be able to stay in their home because of the home retention program… it is a wonderful feeling to be part of that mission.

If you are someone who needs help getting a housing issue resolved, this is the resource for you. I have lived through financial difficulties and divorce which led to pre-foreclosure and short sale. I understand how emotionally charged these transitions can be and I am here to help.

This blog will focus on: foreclosure issues, divorce, short sales, overvalued property and the emotional and financial decisions required in these difficult times.

I am an empathetic resource for you and would love to help you if I can.