If you are one of many families who are in financial trouble because of declining economy, unstable real estate market,  finding it difficult to pay your mortgage, in jeopardy of losing your home to foreclosure, PLEASE contact us for a free consultation! It is imperative that you DO NOT let your home go into foreclosure. There are options you can take. Contact us today, we are one of the few Realtors in Michigan specializing in helping families facing the foreclosure process.

Options  to Keep Your Home:

  1. Loan Modification/Loan Restructuring
  2. Loan Forbearance/Repayment Plan
  3. Reinstatement Plan
  4. Loan Refinance

Pre-Foreclosure or Short Sale:

Acceptable Hardships for Short Sale Consideration?

  1. Payment Increase or Mortgage Adjustment
  2. Loss of Job/Reduced Income
  3. Business Failure
  4. Death of Spouse/Family members
  5. Severe Illness
  6. Divorce/Separation
  7. Relocation
  8. Military Service
  9. Too much debt


What is a SHORT SALE?

When a homeowner owes more on a property than it is currently worth and the bank agrees to accept an amount less than owed as payment in full.

A homeowner is a candidate for a “Short Sale” when he owes an amount on his property that when combined with closing costs and commission is higher than current market value and he qualifies for a hardship.

A “SHORT SALE” occurs when the homeowner’s mortgage company or companies agree to accept less than the full balance of the loan at closing, allowing a buyer to close on the property for less than the amount owed.


It is a legal process that a lender must go through in order to take possession of a property for which it holds a mortgage.

Many homeowners in foreclosure give up, because they don’t understand the process or know their options. Foreclosure has a devastating impact on credit scores and auto insurance rates for years and sometimes forever.

      1.  Credit Scores -  Foreclosure will lower your credit by 300+ points. Foreclosure is the one credit report item that is almost impossible to have ‘repaired’. It remains on public records for an indefinite amount of time, and on a person’s credit score for 10 years or mor  
  1. Job Security/Employment Opportunities – Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy. Many current employers run credit checks and a foreclosure can put a current position in jeopardy.
  2. Security Clearances and Government positions including but not limited to military and law enforcement can be jeopardized by a foreclosure. If security clearance is required for employment such as a police officer, military, CIA, security, or any other position that requires security clearances will be revoked and position will be terminated.
  3. You may be responsible for any DEFICIENCIES JUDGEMENT after foreclosure. The bank may issue you a 1099.


We specialize in working with homeowners who are facing  or are in the process of Foreclosure. We are an advocate for families in need of a professional, knowledgeable agents to help them through the issues they’re facing. We help them make informed decisions. We hope to help as many families as possible avoid the devastating consequences of a foreclosure by successfully negotiating a loan modification or ‘short sale’ with their lender(s).

A Loan Modification or Short Sale is complicated. We have been trained to professionally advise and assist families through the process. Families need a professional who is willing and able to negotiate, properly prepare documentation, provide factual real estate data and marketing materials to portray our Michigan Real Estate Market so Lenders are able to make good timely decisions to resolve the pending foreclosure. Reduce your stress by calling us today!




Successful Short Sale

Future Fannie Mae Loan – Primary Residence

(effective May 21, 2008)

A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Future Fannie Mae Loan – Non Primary

(effective May 21, 2008)

An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Future Loan with any Mortgage Company

On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates.

There is no similar declaration or question regarding a short sale.

Credit Score

Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.

Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale’s affect can be a brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record on a person’s credit history for 10 years or more.

Short sale is not reported on a credit history. There is no specific reporting item for ‘short sale’. The loan is typically reported ‘paid in full, settled’.

Security Clearances

Foreclosure is the most challenging issue against a security clearance outside of conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearances will be revoked and position will be terminated.

A Short Sale on its own does not challenge most security clearances.

Current Employment

Employers have the right and actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.

A short sale is not reported on a credit report and is therefore not a challenge to employment.

Future Employment

Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have an in most cases will challenge employment.

A short sale is not reported on a credit report and is therefore not a challenge to employment.

Deficiency Judgment

In 100% of foreclosures (except in those states where there is no deficiency), the bank has the right to pursue a deficiency judgment.

In some successful short sales, it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.

Deficiency Judgment (amount)

In a foreclosure, the home will have to go through an REO process if it does not sell at auction. In most cases, this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

In a properly managed short sale, the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

We're Here to Help.  Call us today.

The Schwandt Team
Laurie and Amanda Schwandt
RE/MAX Classic
(248) 255-1136