Why?
Most homeowners are upside down in their mortgage and want to get out but can't sell their home to cover what they owe on their mortgage(s). Other life situations happen frequently such as job loss, divorce, medical bills, or an interest rate adjusts. And just like that, the homeowner starts missing payments.
What do we do?
Everyone's first desire is to try a Loan Modification. Unfortunately, loan modifications have become quite the sham according to the local Department of Real Estate. Many companies claiming to be loan modification specialists have been shut down. Even worse, the multitude of homeowners who paid those companies thousands of dollars upfront to help them couldn't get their money back.
What about a Loan Modification from my Lender?
Many lenders don't want to grant Loan Modifications because statistics show, of the Loan Modifications that actually were granted when the economy first began to decline, the homeowner ended up back in default within 6 months, and the bank ended up foreclosing anyway.
Is there anything we can do?
Most people turn to the Short Sale to have their lender approve the sale of their property for less than what they owe, and before the bank forecloses. It is crucial to hire an Experienced Realtor who has mastered the Short Sale process knowing how to work with the lenders and getting approval.
In 2009, the Short Sale process could take 6 months or more. Currently, the Short Sale process can take less than 6 months with experienced Realtors and lenders negotiating and closing in 2 months. Even though this is a huge improvement, it is still not a slam dunk. Just like with a Loan Modification, you will need to provide a lot of documentation and show why the mortgage payment can no longer be paid. However, unlike the Loan Modification process, the Short Sale process can create the positive outcome you are looking for. Also important to know, the lender pays the selling commission.
There is hope!
Most importantly, do not wait for a "Notice of Sale" to be posted on your door. Also, it's important to remember that the Short Sale process is a complex transaction and requires a Realtor that specializes in Short Sales. So, in this situation, your best friend's uncle's cousin that works part time in Real Estate is not who you want for this type of transaction. It's important to speak to a Realtor that is a Short Sale Specialist and can answer your questions, identify your options and assist you in being proactive. Keith and Cheryl Krone have been Realtors since 1983; and for the last 3 years have specialized in Short Sales. The time to contact us is before you have missed a payment, but if you already have, call Cheryl Krone to schedule an appointment to discuss your unique situation at (602) 708-2073 or Cheryl@kroneteam.com.
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