Doing the footwork, applies to virtually anything you do. Taking the steps necessary to achieve the desired result. Sometimes we glide smoothly, other times we stumble hopelessly but it is a skill which will improve with practice. With a rising number of foreclosures, gas prices skyrocketing, and home owners struggling to make ends meet, until property tax reforms are voted on and implimented it will be a long tango for some. This precarious dance between consumers and lenders has many of them stepping on each other trying to get to the finish. The Difference between Shrewed and Screwed we examined what happens when life changes and consumers find themselves behind the curve on mortgage payments. But if there is more than one lender involved...watch your toes. You may get stepped on in a big way. You will be taking a few steps backward and from side to side and the shuffle begins.
First position has its advantages, they will eventually get their money if they foreclose. Second position ( a home equity line, or second mortgage) has less of a chance of recovering the full amount owed, especially after penalties, late fees, attorney costs, and interest tacked on by the primary lender. These costs can mount up to thirty or forty thousand dollars over the original loan amount easily and quickly eliminate any equity the may have had left. If a consumer is in dire straights, they may not disclose the little unpaid bills also piling up against the property. These can include homeowners insurance,home owners association dues which have not been paid, construction or repair costs which could lead to a mechanics lien, and of course unpaid property taxes. It can get ugly fast and in a big way.
We re seeing it all over here in Florida. If you are thinking of exploring the short sale market-give serious thought, take the necessary steps to evaluate the property, look into having a title search done, and be aware as a consumer you may be responsible for other unsatisfied liens- always consult a Real Estate Attorney before making a purchase of this type.