Selling Short... Your best option??? Part 2

A guy on fox 25 News the other morning was talking about short sales...    he said was that people overpaid for their homes and in some cases find themselves short....    really?????

Most likely they didn't overpay for the home...  It was market value at the time!    Saying they overpaid makes it sound as if it they saw they did something wrong..... They didn't!    It was the market!!!!...
When the market turns around, .. and it will... will those folks who have purchased today be said to have underpaid????      I don't think so....  

Okay, off my box....  and on to the topic...

So, you "overpaid" for your home and find your self in a financial situation where you can't keep up with the mortgage payments...  what do you do?

you  have a few choices to avoid foreclosure....    as stated in an earlier blog .... BUT,  the one choice you don't have is to hesitate....

If your interest rate is the culprit and you could afford the payments if they were only a bit lower.. you might think about re-negotiating rate and terms with the lender....  a "loan modification"....  the caviat here...if the interest rate is lowered or the term extended and you still can't afford it  ..... it's not your option....

or, you could work out a deed in lieu of foreclosure

or,  a "short sale" may be your option.....

A lot of talk going on now is that the lenders are being tough and not considering "short sales". ..   more likely, they are really scrutinizing whether or not a "short sale" is warranted.

• do you have a hardship?
• do you have a ready, able and willing buyer for your property?   
•  is the offer reasonable?
•  is the offer arms length?

If you chose the short sale option, get your home on the market with a Realtor experienced in short sale negotiations.  Price it correctly!     ... Accept the best offer.....  Make sure the buyer is preapproved and can wait.... these things can take some time.... (you don't want to get this thing approved only to find out the buyer can't move forward )  Get your financial paperwork and that hardship letter in order....  your Realtor will provide you with a list of things to have ready....have them ready and be ready to update as necessary....

Ultimately, the option you chose will depend on your personal situation.   

Nobody wants to find themselves facing  foreclosure.... but if you see it coming, you can hit it head on..
and if you do..... you will come out the winner....  emotionally and financially....


Coming Soon...

Part 3       Buying a Short Sale - Is it for You?


contact me if you have any questions...   Carol-Ann
cal@alandcal.com 508-494-9061