Are Resetting Mortgages causing more short sales in 2015?

By
Managing Real Estate Broker with Property Management & Sales at REALTY WORKS TEMECULA, CA 92590 (951) 217-6745 01233850

Are Resetting Mortgages causing more short sales in 2015?

Yes,just when it looked like it was over for short sales they have picked up again inpart due to many homeowners not being able to afford the raise in their mortgage payment.

This time the number one cause is unaffordability. Many homeowners that 
were given a loan mod 5 years ago are now getting letters from their lenders 
with major price adjustments to their house payments.

These price hikes are large and are now forcing homeowners to default on their payments and seek help from their lenders for a second or third time. This time most are finding that the lenders are no longer willing to help. So they must sell or face a foreclosure. To sell is the best solution but many home values still have not come up enough to repay the mortgage if sold at market value.

This is why we are now seeing the come back of the short sale again in 2015 just when it was looking like short sale were going to be a thing of the past. Mortgage resets are causing more short sale again here in 2015.

A short sale is a solution to avoid foreclosure. A short sale will allow you to market and sell your home even thought you owe more the the current market value. You will net ZERO Dollars,but you avoid foreclosure and can remain in the home during the process which is taking 3 to 4 months to complete.

Here in California at the end of a short sale you are released of the mortgage in full and the lender can not come back after you for any deficiency. Plus you are NOT allowed to pay any costs of the short sale including agents commission. 

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Location:
California Riverside County Temecula
Groups:
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Short Sales Specialists
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Tags:
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Rainmaker
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Oh no .. I'm not looking forward to the return of the short sale.

Jun 11, 2015 01:45 PM #1
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Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
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Hello Sidney, this is informative and easy to understand. Thanks for sharing. 

Jun 11, 2015 03:09 PM #2
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Yes, I agree with Katerina, this was a great post and easy to follow. Thanks.

Jun 22, 2015 01:38 AM #3
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Rainer
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Sidney Kutchuk

Property Management & Sales Experts 951-217-6745
Avoid foreclosure,ask me about your many no cost options
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