While home values are beginning to work their way up, there are still many homeowners with negative equity in their Silver Spring, MD homes. Fortunately, there are several ways individuals can start fresh during these rough economic times.
- Short Sale
A short sale happens when the loan servicer accepts less for the home than what is owed. The first “Great Recession” short-sale took place in 2006, and became increasingly popular in recent years. This is an involved process that requires expert negotiations with the bank, so make sure you work with a Silver Spring, MD Realtor who is also a CDPE – Certified Distressed Property Expert.
A Certified Distressed Property Expert® has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically short sales, for homeowners facing market hardships.
- Old Seconds or HELOCS
Many homeowners took out a second trust when home values were at their peak. However, because these loans are subordinate to the first, banks holding the second are usually willing to settle for 10 – 20 percent of the loan’s value. If you did lose your home to foreclosure, reach out to the second about settling the debt and salvaging a piece of your credit.
- Credit Check
As scary as it may be, check your credit. Specifically, look for any expired derogatory items and have them disputed. Even if things are in order, you still need to know the dates for which certain items began so you can anticipate their removal from your credit down the road.
- Refinance
If you have anything other than a low-interest fixed-rate mortgage, speak to a loan officer about refinancing your current mortgage. Certain government programs have made it easier and more affordable to refinance, so make sure you speak with a lender regarding your options.
To learn more about foreclosure solutions and receive a free report, contact Emcee Arah online or call 301.452.5252.
As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, Emcee Arah has made it his mission to know the best possible options available to distressed homeowners for both their present and their future…and you can trust that your free consultation will be completely confidential.
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