How to Avoid Foreclosure

What options might be available to avoid a foreclosure?

Deed in lieu


Loan Modification

Short Sale

What is a “short sale”?

It is a sale on a property in which the lender(s) authorizes the property to be sold for less than the amount owed on it, and, if approved, it occurs prior too and in lieu of a foreclosure.  The seller may be willing and able or unable to contribute to the short fall. The shortfall is defined as the difference between the amount owed by the seller plus closing costs and the actual net proceeds received by the lender.

What are Pensacola Market Conditions?

Though our real estate market in Pensacola has not been hit as hard as southern Florida, California, and Arizona; the home values in Pensacola have decreased anywhere from 12% – 20% in the past 18 months.  According to information gathered at a recent economic seminar hosted by the CRS chapter of Pensacola , research indicates that single family home values are currently dropping an average of 1% a month with no immediate end in sight.  Escambia Property Appraiser, Chris Jones, indicated that 23% of the market between 06/2008 and 06/2009 was comprised of short sale or foreclosure sales.

Before you start pursuing a short sale on your home in Pensacola, here’s a brief description and explanation about short sales.  Essentially the buyer purchases the property for less than the combined seller’s mortgage(s) and the seller’s closing costs.

Who can qualify for a short sale?

It is completely up to the lender to decide if a seller is eligible to sell their home as a short sale.   There are many things that enter into this decision and some of these factors include:

  • The borrower’s overall financial condition
  • The borrower’s hardship
  • The cost to get the property into resale condition
  • The property’s value as determined by appraisals or BPO’s
  • The cost of marketing and selling the property once it’s been foreclosed
  • The mortgage insurance on the property
  • The investor on the loan

What is considered a legitimate hardship by the lender?

This varies from lender to lender but as a general rule the borrower must be experiencing one of the following: 

    • Illness of the borrower or immediate family which has caused severe financial problems
    • Death of the spouse which has caused the inability to make mortgage payments
    • Job transfer out of the area without being able to sell the home
    • Job loss of borrower with no foreseeable employment due to local economic conditions
    • Insolvent borrower
    • An adjustable rate mortgage that the borrower can no longer afford the payments on

   What is not considered a legitimate hardship by the lender?

    • The borrower doesn’t want the house any more 
    • The borrower doesn’t feel like making the payment any more
    • The borrower wants to buy a bigger home for the same price now

Missed a mortgage payment?

 For a confidential no-cost consultation regarding your home options you may reach Meg at 850 492-6972.  For an up-to-date list of short sale, foreclosed, or special sale properties, email your request to

Meg Vogt has experience working with short sales & REO’s in Pensacola and carries the CDPE designation (Certified Distressed Property Expert), one of many earned during her career.  “I have the desire as well as the obligation to help educate distressed families to know all their options in today’s housing crash. If there is a way to avoid a foreclosure we want to get this information across even if it  doesn’t mean a sale for us. We are about helping people.” 

This extensive training has also equipped Meg to substantially help buyers achieve their goals using defined communication and insider knowledge where lenders and investors participate in sales.


Along with Experience,Technology, Training & Licensing in REO

and Short Sale Platforms

2 Paradise Realty can make the difference for an Agent in closing Short sales for Lenders, Sellers & Buyers.

Meg is certified, trained and has access to the following programs and technology:

Short Sale Certification ImageCertified Residential Specialist ImageCertified Distressed Property Expert ImageREO ImageREO Certificate Image