Just When You Thought You'd Seen the Last of Short Sales
What's happening out there in Northern Virginia? Just when you thought Short Sales were taking a last dying gasp of air, this Bristow-Gainesville Short Sale Agent gets involved in four Short Sales in less than two months. And there are two more looming on the horizon in 2015 that the owner has already contacted me about.
Yes, my business is seeing an unexpected uptick in Short Sale listings. Why now?
My gut tells me that many people have been hanging on for about as long as they can, not wanting the stignma of having to sell short. While our housing markets have rebounded considerably, if you bought during the boom on a 100% financed, interest only loan, you still aren't seeing the same value as what you paid for your home. And if, like one home owner I spoke with recently, your loans didn't adjust to principal and interest for ten years, you are probably staring down the barrel of that gun.
You see, when an interest only loan adjusts to principal and interest, it adjusts to a payment amortizing over the remainder of the initial loan period. So if you happened to have one of those ten year interest 
free period because you couldn't afford the 4.5% or 5% plus principal amortized over thirty years, you are are going to be absolutely sick when you see what your 11th year payment looks like, because it's going to be more than that thirty year fixed rate looked like.
Not sure what kind of interest only loan you have? CALL YOUR MORTGAGE COMPANY. One home owner who was convinced she had a loan product that was something other than what I described called me back the minute she got off the phone with hers. I know how desperately she wanted to believe that her mortgage was not going to turn about kick in her rear, but it's coming. And because she called me to ask about Short Sale about a year before that happens, she can plan and get on with a Short Sale before she has to screw up her credit score by missing mortgage payments.
If you have been waiting for the market to lift you out of a impending financial strain with even higher property values, you may not get that desired outcome. Our Bristow-Gainesville market has stabilized and prices are holding steady. In some areas, they are starting to wane a bit. Many are hopeful the Spring market will bring exuberant buyers and increasing prices. I know there will be a lot more inventory on the market, than there has been the last couple springs. I don't know about the buyers.
There is a lot to digest when it comes to selling your home in a Short Sale, and one call to me may not be enough. Don't worry. Call me with your questions, then call me again when you have more questions, or don't remember why the answer to the first questions were what they were. When, and if, you need to sell your Bristow-Gainesville home in a Short Sale, you'll be prepared and I'll be here to get it done.
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