Should You Short Sale

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Information about Should You Short Sale
Real Estate

Published on February 16, 2009

Author: mjcleaveland

Source: slideshare.net

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Caught upside down in your mortgage? Here are tips for making the decision to short sale.

Marsha Cleaveland Keller Williams Realty Professional Partners Should you Short Sale? Real Estate Clipbook

Real Estate Clipbook Should you Short Sale? Three factors have converged to create a difficult situation for many homeowners: The market in ’05 and ’06 – homes sold at record-high prices. Buyers took ARM mortgages whose rates are re-setting to higher rates, making the monthly payments too expensive Home prices have now begun to reduce to normal, affordable amounts –difficult for those who bought when prices were high. Now they owe more than the home will sell for in today’s market.

Three factors have converged to create a difficult situation for many homeowners:

The market in ’05 and ’06 – homes sold at record-high prices.

Buyers took ARM mortgages whose rates are re-setting to higher rates, making the monthly payments too expensive

Home prices have now begun to reduce to normal, affordable amounts –difficult for those who bought when prices were high. Now they owe more than the home will sell for in today’s market.

Real Estate Clipbook Should you Short Sale? What should homeowners do in this situation? First, know the terms of your mortgage. Do you have a loan that will adjust? If so, calculate what your new payment is likely to be, and begin putting money aside to carry you through those first tight months. This will give you a buffer of time to make a sound decision when the re-set comes.

What should homeowners do in this situation?

First, know the terms of your mortgage. Do you have a loan that will adjust?

If so, calculate what your new payment is likely to be, and begin putting money aside to carry you through those first tight months. This will give you a buffer of time to make a sound decision when the re-set comes.

Real Estate Clipbook Should you Short Sale? If your mortgage has already re-set to a higher payment, and you are struggling, what are your options? 1) refinance at a fixed rate – the best option with good credit when your home is still worth the amount owed. 2) work out a forbearance plan with the mortgage company – they may freeze the rates at the present level for a period of time, to allow the market value of the property to catch up to the loan value.

If your mortgage has already re-set to a higher payment, and you are struggling, what are your options?

1) refinance at a fixed rate – the best option with good credit when your home is still worth the amount owed.

2) work out a forbearance plan with the mortgage company – they may freeze the rates at the present level for a period of time, to allow the market value of the property to catch up to the loan value.

Real Estate Clipbook Should you Short Sale? 3) short sale – if circumstances have caused finances to bottom out – job loss, major medical costs, etc., you may be allowed to sell the home for less than is owed. All equity will be lost, but the impact on your credit score will be less than for a foreclosure. 4) foreclosure – the bank will foreclose if you do not pay your mortgage. Act immediately to pursue one of the above options if you receive a foreclosure notice from the bank, as foreclosure is to be avoided if at all possible.

3) short sale – if circumstances have caused finances to bottom out – job loss, major medical costs, etc., you may be allowed to sell the home for less than is owed. All equity will be lost, but the impact on your credit score will be less than for a foreclosure.

4) foreclosure – the bank will foreclose if you do not pay your mortgage. Act immediately to pursue one of the above options if you receive a foreclosure notice from the bank, as foreclosure is to be avoided if at all possible.

Real Estate Clipbook Should you Short Sale? A Realtor can help you evaluate the best choice for your circumstances. If you have already received notice from your bank, legal advice is highly recommended. Be wary of people who have no professional licensing or credentials. Some will take advantage of your predicament.  

A Realtor can help you evaluate the best choice for your circumstances.

If you have already received notice from your bank, legal advice is highly recommended.

Be wary of people who have no professional licensing or credentials. Some will take advantage of your predicament.

 

Real Estate Clipbook Should you Short Sale? Mindset If you are in a tough situation, don’t give up. Call a real estate professional who understands these options and more. There is a way out, and there are professionals ready and qualified to guide your journey. Learn the life lessons that come from the storms, and resolve to carry new wisdom into tomorrow.

Mindset

If you are in a tough situation, don’t give up. Call a real estate professional who understands these options and more.

There is a way out, and there are professionals ready and qualified to guide your journey.

Learn the life lessons that come from the storms, and resolve to carry new wisdom into tomorrow.

Real Estate Clipbook Produced by Marsha Cleaveland Information presented is for educational purposes only. For tax and legal advice, please consult the appropriate professional. For Real Estate Information: http://activerain.com/blogs/homekey www.HomeKey.org ©2007 Marsha Cleaveland, all rights reserved

Produced by Marsha Cleaveland

Information presented is for educational purposes only. For tax and legal advice, please consult the appropriate professional.

For Real Estate Information:

http://activerain.com/blogs/homekey

www.HomeKey.org

©2007 Marsha Cleaveland, all rights reserved

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