FICO - the organization behind the famous "FICO score," - has conducted a survey of big banks' risk professionals. When asked whether they believed that the housing makret would recover to 2007 prices by 2020, 49% of these professionals answered, "no." Only 21% answered, "yes." The rest of the survey was equally grim as most of these professionals expected mortgage delinquencies to increase over the next six months.
So what does this mean for you? Should you feel badly if you are in a terrible mortgage situation and contemplating a short sale?
No - this situation is bigger than you.
It's important to have some perspective when asking yourself the above questions. The first thing to remember is that you did not create the housing crisis. Yes, it is true to say many homeowners should not have leveraged themselves to the degrees that they did and they should have planned better for the long term. If you are one of these homeowners, then you need to take some responsibility for your situation. However, the government and the banks are also to blame as they constructed the incentives and the unsustainable lending structure that drove people to mortgages those people could not afford. It takes two to tango and the banks and government chose the tune and invited everyone to dance.
Should you stay in your home to help the market recover?
Perhaps - however, the majority of homeowners in this situation simply cannot afford their home and need to realize that staying in their home is not a realistic, long-term option. For these homeowners, foreclosure is most likely in their future. The alternative to foreclosure is a short sale.
Compared to foreclosure, a short sale is a better option for the homeowner and for the economy. It is a better option for the homeowner because it will harm their credit significantly less than a foreclosure and will save the homeowner the embarrassment of being evicted from their home for all of their neighbors to see. A short sale is better for the economy because it most quickly places a long-term mortgage-paying homeowner in homes that would otherwise undergo foreclosure.
If you think a short sale might be right for you, it is important that you work with experienced professionals who have a record of success. Additionally, it's important that you think seriously about hiring legal professionals who can advise you on the tax and contractural liabilities of your short sale. We recommend working with Fitzpatrick & Prince Real Estate and the Rasmussen Law Firim. This team has a demonstrated record of success and their services are provided to home sellers at NO COST. Their fees are paid by the bank and buyer.
Give Whitney at Fitzpatrick & Prince a call today: 800.880.9962.
