SHOULD I SHORT SALE OR LOAN MODIFICATION MY RANCHO CUCAMONGA HOME ?
Are you a Seller A or Seller B. Sometimes, it is better to start anew. However, everyones situation is different. If you are in a bind and don't know which way to turn? Check out www.makinghomeaffordable.gov. There you will find all the necessary information that you might need to make your decision. Feel free to call me or any realtor who specializes in shortsale. We are here to help.
SHOULD I SHORT SALE OR A LOAN MODIFICATION FOR MY RANCHO CUCAMONGA HOME?
I am asked this question several times a week from desperate homeowner trying to keep their homes from foreclosure.
The question that I ask the seller is "Would you pay me $5,000.00 for a car that is valued at $1,500.00?" All home owners say no, then I ask them, aren’t that the same thing you want to do when you asked me if I should short sale or A loan modification for my Rancho Cucamonga home.
The reason I ask that question, because most loan mods do not make good financial sense, however it makes good emotional sense to the home owner, because they are emotionally tied to the house, also some are depressed, embarrassed, and can't sleep at night, so they say to me I don’t care if my house is 50% under water I will pay as long as the bank gives me a payment that I can afford, so I give another scenario of some of my past clients. Both Sellers owes $500,000, however the homes are worth $250,000
Seller A and Seller B.
Seller A does a loan modification in Rancho Cucamonga home, their payment drops From $4,000mo to $2,800.mo, however the owe $500,000 on the home.
Seller B short sales their Rancho Cucamonga home for $250,000, then rent a home for 24mo. After 24mo of renting then moves back to their previous Rancho Cucamonga neighborhood and purchase a house for $275,000, the house is better than the one they short sold 24mo. ago
Seller A still owes $500,000, on their Rancho Cucamonga home which will receive a balloon payment in 5 years.
Which Seller do you want to be in Rancho Cucamonga Seller A or Seller B?
What should seller A do?
A. Should Seller A do aLoan modification and keep their home ?
B. Short sale
C. Do nothing
D. other________________
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