To Sell or Not to Sell that is the Question
This has been a big question on most homeowner’s minds. You are uncertain of the market and not sure if you should sell, stay or let your home go. In the upcoming blogs I hope to answer the top 5 questions. I want to help homeowners understand and realize what their next step should be:
<!--[if !supportLists]-->1. <!--[endif]-->Should I stay in my home?
Let us explore how to better answer this question. Can you afford to stay in your home? If the answer is no then the next question is, have you spoken with your current lender? If the answer is no then this should be your first step to staying in your home. I will elaborate further in this blog.
The next question is do you want to stay in your home? Some home owners see their best friend or family members buy a bigger home for less and think, well shoot why pay $2,000 a month for a home that is not worth what I paid for it? I can get a more affordable home for half the cost. It is like saying I bought a new BMW for $50,000 and your friend a few weeks later drives up in the same BMW but only paid $25,000 for it. You might be tempted to let your car go and get another one cheaper.Can you afford to stay?
I came across a homeowner in Tracy, CA that said they wanted to let their home go. Their wife’s credit was better and the current home was in their name. The foreclosure will reflect badly on the husband’s credit, but not on his wife’s. He said he can then buy another home in Tracy, CA cheaper and larger. I then asked them do you have 20% to put down on a new home? He replied no, I can put 3 ½% down on an FHA loan. I then asked them if he realized that on an FHA loan they will still check his credit even if he is not on the loan. I recommended he speak with a lender to see if this scenario is possible. I came across one lender that might work with a homeowner that has a foreclosure or short sale on their credit. Wells Fargo Home Loans. https://www.wfhm.com/loans/esteban-campos/about.page
It may be possible but is it right? It doesn’t seem fair you paid $500,000 for your home and your buddy just bought your same floor plan for $200,000 and got a 3% rate. It really isn’t fair, but you have to take a deep breath and explore your options and goals. If you cannot make the payments due to a layoff, reduction in income, disability, etc. You have a legitimate reason for your concern.
Is it worth leaving your home?
You might have emotional attachments to your home. Your child was raised their, and have many great memories. Maybe you lived there for a while and the thought of leaving is very painful. You have friends and family nearby. These are important questions to ask yourself. Is leaving your home an option? If you can afford it should you not worry about the storms of the market and enjoy the home you love?
Speak with your lender
It is a common practice that when we were kids we would hide telling mom and dad what we did wrong. We are afraid of the consequences. Maybe you are afraid to call your lender because you think just by telling them you are having a hard time paying the mortgage that they will come take your home away. Or maybe you are embarrassed. The banks do not desire to take back something they wanted you to have in the first place. They want money, not devalued homes. There are also new government programs like Making Homes Affordable that allow your current lender to try and modify your current mortgage note.
http://www.makinghomeaffordable.gov/about-mha/Pages/what-is-mha.aspx
If you tried speaking with your lender and cannot afford to live in your home any longer than the next step is to decide if a short sale is better than a foreclosure?
I will update the next blog with more steps and help. In the meantime feel free to call or email me if you need assistance with how to do a loan modification or short sale. I cover Tracy, Mountain House,Modesto and Sacramento areas. I also cover most of Northern, CA and the Bay Area.
Alex Zachariou
Cell: 209-818-6699
Email alex@sunpacifichomes.com
Broker license#01747067
*Alex Zachariou is only offering an opinion and examples.
Comments(3)