Those "buzz" words of late ... Short Sales and Foreclosures. With the 100% financing terms, or Adjustable Rate Mortgages (ARM) that have popped up a bit for people (let's just say there is $1 trillion ARM loans that will need to be refinanced in 2007 alone) ... it seems as if Foreclosure is looming for many right now. So if you're one of those people - what can you do??
It's been said, even by someone with the Mortgage Bankers Association, that Short Sales might help the U.S. Housing slump. Yes, of course the decreased sales prices may hurt the median sales price for others ... but it also reduces the number of foreclosures that occur, thereby helping to ease the housing downturn. Then maybe a Short Sale is the way to go.
Now let me inform you that going this route isn't easy. You had to prove that you could afford the home when you got the loan - now you have to prove that things changed (i.e. loss of job, divorce, etc..) where you can no longer afford the home. I will say that if you have had the loan for a year or less - they aren't as likely to go for a short sale. Do keep in mind however, that the bank does not want to own your property. It can be more costly for them to go into foreclosure, have it sit empty and then loose more value before it goes to auction.
The best piece of advice I can give you is Don't Try To Do This Alone. When you're sick ... you go to the doctor. In other words ... seek a professional for their assistance. You'll need a Realtor who knows how to handle Short Sales or Pre-Foreclosures; I would seek advice of a real estate attorney and a tax accountant. That way you have a complete understanding of how this process will occur. Remember you may only have one chance to have a truly successful negotiation with the lender.
If you have questions - let me know. I'd be happy to help.
Aubrye Harris (702) 375-7443
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