Janna Rankin Scharf, Coeur d'Alene Idaho Short Sale Realtor -
Both of these homes were recently listed for sale in the Coeur d'Alene Multiple Listing Service. These two homes have more in common than you might think based on outward appearances.
Behind the four walls at each home were distressed homeowners underwater on their mortgages. Upside down is another tag for their situation. They owed more on their mortgages than they could sell their homes for in our current market.
The size of the home and means of the owners may be worlds apart, but they were essentially in the same situation. One size fits all. Some turn of events made it impossible to continue with their house payments.
One was offered for sale as a short sale for $59,000. The other at $1,150,000. Their lifestyles may be worlds apart, but these homeowners are in the same boat.
When for whatever reason you can't continue with your mortgage payments, you have limited options and intense pressure. Your options:
Loan modification. Unfortunately, a majority of people who attempt to have their loans modified just can't make it happen. Statistics on successful modifications are dismal and disheartening. There are strict rules for qualifying and often the hardship that makes it impossible to continue with your current mortgage makes it also impossible to qualify for a modification.
Foreclosure. Conceding defeat and turning the house over to your lender. Either a deed in lieu or outright foreclosure, this is the end of the road. Most homeowners I talk with believe that this is giving up, and they feel guilty for not honoring the terms of their mortgage in spite of their inability to do so.
Short Sale. When a homeowner is between the proverbial rock and a hard place, and wants to try to avoid foreclosure and make the best of their bad situation, they will attempt to short sale their home. Not for the faint of heart, it can be a lengthy, emotionally exhausting process. Not necessarily, but it's never a slam dunk. Often a seller will be able to receive relocation funds at closing. There is never anything for a seller to lose to attempt a short sale.
Underwater homeowners I have talked to are ashamed, discouraged, distressed and embarrassed. Often this makes them paralyzed with indecision and inaction. That's the worst thing to be!
Talking to someone who is experienced in short selling can help to
clarify your options and bring the best course of action for your situation into focus.
Whether you are upside down on a modest starter home, a lakeside estate or anything in between, I would love to visit with you in absolute confidentiality to help you understand your options. The worst thing you can do is to do nothing. Let me help you make the best of a bad situation.
At the end of the day, there is peace to be found in
knowing that you did everything that was within your power to do.
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