Help for Homeowner owing more than market value on their home

Real Estate Agent with Keller Williams Realty 6502364184

It is estimated that aproximately 47% of homeowners across the country now owe more than their home is currently worth. This has been a massive market correction for home prices and it is estimated the decline could continue for another year before the bottom is reached.

For these homeowners who need to sell now, there is an option that is a better alternative to foreclsoure. By working with an experienced Realtor, who is knowledgable about short sales, you may be able to sell your home for its current market value regardless of the mortgage balance. Your Realtor can negotiate with the bank to accept a lower pay off for the property allowing you to sell it and avoid foreclosure.

The banks are more receptive to this now that they have thousands of homes on their books and do not want to foreclose if they can avoid it. A foreclosure is much more costly to banks than a short sale, and they are more willing now to consider this a viable option.

The advantage to homeowners is they avoid a foreclosure on their credit report which could prevent them from purchasing another home for 5 to 7 years, as well as up to 300 point hit on their credit score. With a short sale, the same homeowner could purchase another home in 12 to 18 months, while taking a much lower hit on their credit score, perhaps 50 to 100 points. 

In today's world, so much of what we pay for is credit score driven, so protecting your credit score is very important.  

My goal as a real estate consultant is to help as many homeowners avoid foreclosure as I can. That is why I have taken the Short Sale course at Harris Real Estate University and am now a Certified Short Sale expert. Probably the only Realtor in the Saginaw, Midland, Bay County area to take the time to specialize in this area because most Realtors avoid short sales. They don't like the extra work involved and time to get the deals closed. The primary reason for that is the lack of experience of many Realtors trying to do a short sale without proper training and experience. If your Realtor does not have this expertise, they could actually cost you the sale and your home will end up foreclosing.

For more information on this subject, contact Ray Spitler at 989-607-6252 or visit