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Writer's pictureSandy Cantu

Looking to avoid Foreclosure?


The Short Sale as a Strategy for Homeowners to Avoid Foreclosure

In 2020, real estate news wasn’t focused on foreclosures and short sales. Instead, home buyers were scooping up properties listed on the market like they were dollars flying out of an armored car. The buying frenzy continued into 2021 as home sellers entertained multiple offers in cities throughout the country. Once quiet locales and mid-size markets became the places to live, like Idaho. CBS News reported in Nov. 2021 that Boise, Idaho is now ranked as the country’s least affordable market.

But will the housing shortage turn into a housing glut? If it does, existing home prices will drop.

How will that affect you and your situation?

What if you purchased last year because you didn’t want to miss out and stimulus money made it possible for you to jump into the market?

If your personal cash flow is positive, and you’re making mortgage payments, then you’re in good shape and can stay put.

But what if you’re in a position like this:

You fell behind in payments but didn’t sell because you couldn’t afford to buy a home in your city or another nearby market. You wondered where you’d move to.

You’re not alone, so don’t feel badly.


Foreclosure Figures

In the third quarter this year, lenders started foreclosing on 25,209 properties. That figure’s a 32 percent increase from the second quarter and up 67 percent from the same period in 2020, according to ATTOM, a data service handling real estate and other industries.

It’s also the first since 2014 that foreclosures increased by double digits in a quarter.

Where are most foreclosures happening?

· California with 3,434 properties in process

· Texas with 2,827

· Florida with 2,546

· New York with 1,363

· Illinois with 1,362


What is Foreclosure and What You Can Do

Let’s start with what not to do. Don’t blame yourself or your spouse if you’re married. Just reading this shows you’re looking for solutions and that’s important.

There are several steps to the foreclosure process, including: first missed payment; a default after a few missed payments; and then a notice of default. Borrowers can live in their homes during the foreclosure process which can take several months to complete, depending on the state.

Lenders take possession of properties when the homeowner stops making payments after a certain period of time. They can sell the property and the resident has to move out immediately.

If you’ve fallen behind in your mortgage payments by at least a few months, then you have to be realistic about your ability to catch up. It’s not just your house payment, but also property taxes and insurance costs that factor into the expense.

Take these steps.

Work with your lender and don’t ignore the payment due dates. Some lenders will offer loan modifications so you can more easily pay the monthly payment.

If your circumstances aren’t going to change soon, then look to sell.

Consider the benefits of a short sale.

This is when the lender lets you sell your home for less than the full value on the market. A lender will do this to recoup a portion of the original loan.

A short sale can protect your credit, save you money and give you some decision-making power.


My Passion for Helping Homeowners

I enjoy real estate as a career because it’s satisfying finding affordable home-ownership solutions for families in all stages of their lives. That’s why Cantu Land Plus is so important to me.

I’ll gladly speak with you, listen to your needs if you’re in pre-foreclosure or in foreclosure, and work with you and your lender on a short sale if that’s the appropriate action to take.

I’m known for integrity and trust—two qualities that are very important to me.

Contact me to answer your questions about a short sale.

In the meantime, you can download this easy-to-read guidebook for free and get another perspective on what it means to establish a home you can afford.

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