The mortgage meltdown has devastated millions of American homeowners. Since the meltdown began in 2007, more than 2.3 million homes have been repossessed by the banks. President Obama, his economic advisers, and the press have all tried to convince the American public that things are getting better, that recovery is here to stay. Do not be fooled. In the housing market there is no recovery in sight. The headline at MSNBC tells the story: "1 in 10 Mortgage Holders Face Foreclosure."
According to reporter Alan Zibel, "One in 10 American households with a mortgage was at risk of foreclosure this summer as the government's efforts to help have had little impact stemming the housing crisis. About 9.9 percent of homeowners had missed at least one mortgage payment as of June 30, the Mortgage Bankers Association said Thursday... More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year."
This September the last block of the adjustable rate mortgages (ARMs) will sharply increase their interest rates. This will undoubtedly result in another wave of defaults and foreclosures. The housing market will feel the impact in the form of decreased home values. If your underwater on your mortgage or facing foreclosure and your strategy is to hope for a turnaround in the housing market, then it's time for a new strategy.
Short sales are a great way to sell your home and, perhaps, have your debt forgiven. Short sales do not devastate your credit as foreclosures do which means that you'll be able to take out a mortgage on a new home much sooner than you would in the event of a foreclosure.
However, before you short sell your home, there are a few things you need to be aware of:
01Find a reputable real estate agent with a track record of success in short sales. Short sales are not the same as standard (equity) sales and require extensive experience. Don't rely on tag lines like "short sale expert." Certificates from a brief seminar aren't good enough. Ask to see proven results.
02Have an attorney review the terms of the short sale. A good short sale attorney may be able to eliminate "recourse" language from the sale thereby stopping banks from trying to collect on your mortgage debt in the future.
03Don't hide anything about the home. When you find an agent, tell them the full story so that nothing surprises either the agent or the bank. When negotiating a short sale, surprises put the success of the sale at risk.
04Be prepared to wait for a long, long while. Unlike standard sales, short sales require negotiation lasting anywhere from 2 months to over a year. If your short sale is in negotiation, however, you can stay in your house throughout the entire negotiation process payment-free.
We recommend you work with Fitzpatrick and Prince Real Estate and Rasmussen Law Firm. They have a proven record of success having closed 95% of their short sales. Nationally, the average short sale closure rate is only 20%. Additionally, these companies have worked together on a number of short sales, they understand how the other operates, and can move quickly, together, to negotiate with the banks to close your short sale.
Start the conversation today with Mark, Whitney, or Blake at Fitzpatrick and Prince Real Estate.
Give them a call at: 800.880.9962.
