Professionals from our education and customer service departments are always fielding this question, whether it’s from a Webinar attendee or a distressed homeowner facing foreclosure.

First let’s be clear: A short sale will ding your credit score, lowering it anywhere from 80 to 100 points.

However, it is a much better option than foreclosure, which can drop your score as much as 250 to 280 points for as long as seven years.

Therefore, it is always in a homeowner’s best interest to short sale or sell his or her home by other means before forfeiting it back to the bank/lender.

One very important item that must be top of mind when thinking about short selling your house, however, is whether or not you will be hit with a deficiency judgment.

In a short sale transaction, a bank agrees to sell a home for less than what it is owed by the original borrower. And even though a bank may sign off on the deal, it could still hold the original borrower accountable for the difference on the short sale.

In other words, if you bought your home for $300,000 and sold it as a short sale for $215,000, you could still potentially be on the hook for $85,000.

For most people a deficiency judgment is the final financial blow that forces them into total economic submission: Bankruptcy.

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The U.S. Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives (HAFA) program on Nov. 30, 2009.

It was designed with good intentions — to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. However, HAFA is a complex 43-page program that may be difficult for most real estate agents to fully understand.

To be perfectly honest, most agents may not even have the time or desire to familiarize themselves with the entire program.

But you simply don’t have a choice — HAFA guidelines go into effect April 2010! And they will likely have a large impact on your business, protocols and, most important, commissions.

Here’s the good news: You do not have to be left in the dark on this industry changing program.

That because Foreclosure.com Agent University is conducting two limited attendance FREE Webinars (Register here or here) to teach real estate agents all about the key HAFA changes.

This 1.5 to 2-hour Webinar will take an in-depth look at the guidelines and forms focusing on the key issues to real estate agents:

• Commission impact
• Forms and paperwork
• Participation guidelines
• Timelines
• Servicer participation
• Incentives for homeowners
• Second- and third-party liens
• And much more!

DO NOT MISS THIS IMPORTANT FREE WEBINAR!

Click on one of the events below to register:

• Thursday, Feb. 11, 2010, at  3 p.m. to 5 p.m. ET https://www1.gotomeeting.com/register/690622256
• Tuesday, Feb. 16, 2010, at 3 p.m. to 5 p.m. ET https://www1.gotomeeting.com/register/929001865

HAFA is part of the Home Affordable Modification Program (HAMP), providing incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program.

Understanding HAFA inside-out is critical for serious real estate professionals. And this is your opportunity to learn everything you need to know at absolutely no cost to you.

Boca Raton, Fla. — January 6, 2010 — Foreclosure.com today announced that it will team up with Inman News to enhance the experience for real estate professionals who attend the annual three-day tradeshow at the Marriott Marquis Times Square in New York, N.Y., from Jan. 13-15, 2010.

“Real Estate Connect New York City 2010” is where more than 1,300 industry professionals gather each year to meet new customers, partners and collaborators in innovation, gaining the competitive advantage to keep up and get ahead.

Accordingly, Connect NYC 2010 attendees will have the opportunity to earn foreclosure and short sale designations through Foreclosure.com Agent University, which are universally recognized as the standard of excellence among real estate professionals.

The hands-on, deal-driven training is included in the cost of admission to Connect NYC 2010, meaning that agents who attend do not have to pay extra to earn two (Certified Foreclosure Agent and Certified Short Sale Agent) important designations.

It’s a savings of more than $1,300, according to Foreclosure.com Director of Education, Linda Yates.

“We know that the agents who have not yet focused on the booming distressed real estate market could be struggling to close deals,” said Yates. “This is their chance to change all that in one fell swoop and start the New Year off right with incredible learning experiences that will be invaluable assets for the rest of their careers.”

Foreclosure.com will host a live, full-day interactive seminar on Jan. 12, 2010, at Connect NYC 2010, certifying agents with its short sale curriculum. Upon completion, Certified Short Sale Agents will be able to get their Certified Foreclosure Agent designations online.

To register for “Real Estate Connect New York City 2010,” and take advantage of the certified short sale and foreclosure agent training while at the show, visit www.inman.com/conferences/CSSA. Please use code “CSSA” at registration.

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Three years ago, just as the housing market was beginning its rapid descent, we purchased a perfect three-bedroom home in South Florida for $325,000.

It was in a great neighborhood. Excellent school district. We were set.

At the time it was priced right to sell ($379,000) — other nearby homes were hovering around the low $400′s. So we were thrilled when our “miracle offer” was accepted with no counters or questions asked. We celebrated the “steal of the century.”

Unfortunately, our joy didn’t last long.

Each year we helplessly watched as our home value continued to sink like a rock. We’re still not even sure if it has hit bottom — we’re too scared to look.  Last time we checked our home was roughly worth about $250,000, which is about a $75,000 hit.

Many homeowners today are in similar if not worse positions. We understand that. Still, that’s a lot of money.

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BOCA RATON, Fla. (Sept. 21, 2009) — Foreclosure.com Founder, President and CEO, Brad Geisen, announced today that he has built the first-ever short sales offer management system that handles marketing, processing, negotiating and closing services all in one central location.

QuickSale ^SM (www.QuickSale.com) is an easy-to-use platform that simplifies an often long and complicated process, bringing together all parties — distressed homeowners, lenders, investors, buyers and agents — who all share one common interest: Moving real estate inventory as fast as possible under the best terms.

“Short sales are the ultimate solution when it comes to solving the national foreclosure crisis now and in the future,” said Geisen.

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