In Sarasota, Florida we have an alarming number of homeowners facing Pre-foreclosure, with the decision of needing to look at a loan modification, forbearance, deed in lieu, bankruptcy, foreclosure or Short Sale. When looking at a Short Sale, the reality is that a homeowner's property is going to sell for substantially less than what the Homeowner owes on their mortgage. In some cases, hundreds of thousands of dollars below what the homeowner owes on the mortgage. Often, as Short Sale specialist in the Sarasota, Florida market area for Keller Williams Realty we are asked, "since the lender will be reducing my mortgage balance to sell my house, why can't they do that for me?" Otherwise;
Why won't my lender adjust the Principal Amount of my mortgage instead of foreclosing?
In the big picture, it is not wise for a lender to reduce the Principal Amount of a mortgage to someone in default on their mortgage because if they did that, it would set a standard for everyone not in default on their mortgage to go into default. Right now there are approximately 1 in 7 homeowners in distress on their mortgage. If homeowners were given Principal Relief from the mortgage, these pending foreclosure rate figures could jump to 6 out of 7 homes that have mortgages going into default. This would only devalue our real estate market even greater than what we have already seen.
The Troy Funk Team with Keller Williams Realty in Sarasota, Florida specializes in marketing and selling Short Sales and has closed over 100 Bank-negotiated sales in the Sarasota Real Estate Market Place in the less than a year. For more information on the alternatives to foreclosure, visit their website at www.SarasotaFLShortSale.com or call them at (941) 957-3737.
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