It was JULY Of 2006.
I was 24 years old at the time, and I really wanted to own a home. Little did I know the bottom was about to fall out in the housing market and really the entire economy. My plan (in my head) was to buy this property, live in it for 2-3 years, do some repairs along the way, and resell it for a profit within 3 years.
Then 2007-08 happened 🙁
Like all of us, it hit me hard. I had to scramble to pay the mortgage every month. The adjustable rate was increasing again 🙁
I had no choice.
I had to apply for a short sale.
What a low time that was for me. I talked with a couple of attorneys and realtors regarding my options.
And none of them looked good. Foreclose or short sale? Either way I thought was a failure for me.
At least, that’s what I felt like…
I remember during that time, there weren’t many resources available for me which kept me kind of depressed, confused and just down.
I opted to go the short sale route. Short sale is where the bank accepts an offer less than what is owed on the property.
Thus releasing your loan from their books. And limited (ish) damages to you.
Typically, it will stay on your credit for 3-4 years. With a foreclosure, it stays on your credit about 7…or longer.
I owed 253k The lender accepted an offer of 112k with a different buyer. wow. The house was in Streamwood.
My credit was damaged for a bit, but I decided to rent for a couple of years.
It was at that time, I became a real estate investor and buyer.
Going through that whole process and the lack of resources I felt were available to struggling homeowners, I decided to shift my career path.
I have empathy and sympathy for anyone going through any difficulty paying their mortgage. I know how it feels. Very vividly.
Not answering phone calls from bill collectors, not answering the doorbell because you think its the repo man or sheriff, I’ve been there.
If you take the right actions going forward, you can really turn it around..
If you’re looking at selling your property and wondering which way to go…ie short sale, foreclose route…contact us today. I would love to chat with you to see how I can help.
I’ve been there and I get it.
Should I let My House Go Into Foreclosure? (personal story)
It was JULY Of 2006.