Some months ago I was approached by a distraught family with a financial crisis, who was facing foreclosure because they had stopped making payments on their mortgage. They had a house they needed to sell quickly and high enough to cover what they still owed the bank. With a declining market and a house that was now sitting vacant, I ended up selling the house after about 45 days on the market for fair market value. Which was about $50,000 less than what they owed the bank. I'm happy to say that we have now sold the house after the bank agreed to take a discount for the amount the sellers still owed. The sellers were ecstatic and now breathed a sigh of relief. You might ask, why would any bank allow for such a big discount? The answer is simple, banks do not want to own homes they just want to finance them. This process is called a Short Sale and banks allow them because it saves them a tremendous amount of money and legal headaches when they don't have to foreclose on these properties. At the same time, in most cases, the seller saves his credit and would be eligible to purchase a home again in less than 2 years. The owners of this home were smart enough to explore their options and hired a professional with enough expertise to negotiate a short sale on their behalf and saved them from over 10 years of bad credit.
All of us can fall prey to hard times at any point in our lives, but if you are well informed and surround yourself with the right people you will make smart decisions. The Team at Castle Realty and myself are dealing with short sales on a daily basis. The result of our experience will benefit you greatly and bring you much needed Peace of Mind.
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