Do you owe more than what your house is worth? Richmond Va

Do you owe more than what your house is worth? Are you tired of making your high mortgage payment? Are you ready to just "walk away?" And yet, you fear what foreclosure may do to your credit rating? If so, you are not alone.

So, you bought a house three or four years ago at market value, but then the housing market started to decline. There are literally thousands of homeowners right now in Virginia who find themselves in this predicament.
Now the market value of your house has fallen below the amount owed. So what should you do if your house is worth less than the value of the loan on the house? You may feel stuck and confused. But there is hope for your predicament.

The real question is “What is possible for someone who is owing more than the value of the house? “ Here are three ideas to

1. Keep paying the mortgage and wait for the house value to go back up.
2. Call the bank and ask for a loan adjustment
3. If #1 and #2 above will not work for you, do a SHORT SALE, and do yourself and your lender a favor.

By considering a SHORT SALE, you are helping your lender and your future credit rating.

Here's the thing: Lenders are not in the real estate business, they are in the lending business. Therefore, they don't want your house, they want you. According to a report I read recently, the costs of foreclosure are enormous. On average, the total cost -- including lost interest during the delinquency, foreclosure costs and disposition of the property -- ran nearly $69,000, and this situation took approximately 18 months to resolve. Worse, these figures were five years old. It is probably more expensive now and takes even longer. Therefore, a SHORT SALE would be doing your lender a favor.

How does a SHORT SALE benefit you? Once your lender approves the SHORT SALE, the difference between your approved payoff amount and the amount owed on your house is reported as "charged off or paid as settled" on your credit report - just like an unpaid credit card. It varies from lender to lender, of course. However, in this instance, a charge-off or paid as settled is less damaging than a Foreclosure against your record. This saves your credit rating for your future endeavors versus a foreclosure which is on your record approximately 10 years.

If you or someone you know are in this predicament and are thinking of doing a SHORT SALE, your referral is greatly appreciated. The Marcus Rice Team has extensive experience in residential properties with many successfully closed SHORT SALE transactions. I am here to help please feel free to contact me so we can start making a plan of action. The clock is ticking and you should ACT NOW before it's too late.

Call us today for a FREE consultation with no obligation!