SHE HAS THIS..... a house that's upside down She wants this.......
You see what Sally Seller thinks she has... you see what she thinks she wants... will the banks allow her to relocate via a short sale?
Sally Seller is upside down on the home she purchased 7 years ago.
According to NAR people HISTORICALLY move or refinance every 5 - 7 years. Sally Seller has reached the 7 year mark. She can't refinance because she owes more than she can sell her home for.
Her best friend, just moved across town into a home twice the size of Sally's for half the price Sally pays monthly.
Sally Seller tells the bank that she can't afford her payments anymore, and she works deligently along with her REALTOR towards a successful short sale.
What happens NEXT, is a trend I'm starting to see. It's happened twice in the past 2 months to short sale sellers in Mountain House and Tracy, CA.
The bank offers the seller a HUGE reduction in payments. Yep, the bank will lower their payment to todays value of the home, today's interest rate, thus making it "affordable" for Sally Seller to keep her house. This is a 30 year mortgage, with a silent deficit waiting for Sally to sell or the housing market to catch up.
Sally is NOT HAPPY, she didn't want her payment reduced she wanted a short sale, she wants a new house. So now what?
Are you seeing this trend?