This has been quiet a horrific time in the US economy for many homeowners. You're not alone, there are more foreclosures now than ever before! Were talking about in the millions! Don't blame yourself, it took an appraiser to come up with the value of your home, it then took a bank to validate that appraisal and underwrite the loan they gave you. The bottom line is the banks screwed up big time!
So what are your options if you owe more than you can sell your home, after broker fees and closing costs?
If you qualify you can do what is called a "Short Sale".
When a homeowner owes more than the home is worth, a realtor like myself for example, can negotiate with your lender. We can work with your lender and get them to accept a buyer's offer below the pay off amount on your mortgage.
What are the pro's to doing a "Short Sale" as a homeowner?
You're only put on a one year probationary period vs. seven years of bad credit and having to wait a heck of a long time before you'll qualify to buy another home.
You may ask yourself why would a bank do this? Well, banks are not in the business of owning real estate. They are in the business of making loans. It would cost the banks far more to hold onto the house. Not to mention the costs of keeping up with the home. Banks don't have time for this. So by doing a short sale you'll get the home in good condition and it'll be ready to sell. If your property is marketed well and you can procure a buyer at price the lender agrees on, you will be released from your mortgage.
The process itself is very complicated but could save you alot of frustration down the road. I would recommend hiring a Realtor and ensure they have past experience with short sales. I'm not a CPA or Lawyer so be sure you consult with a lawyer and CPA regarding a short sale on your property.
If you live in the Greater Austin area I would like the chance to work with you and help you through this rough time. I have been through a short sale and can help it be a smooth transition so you can get onto the next stage of your life. Please don't hesitate to call. 512.567.1597
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