As real estate professionals we have spent the last several years helping homeowners avoid foreclosure in this ever changing economy….
We can finally say____Washington DC is waking up!
The major networks and newspapers are advertising Short Sales…..could it be because……
As of the first of the year 24% of homes in America with mortgages were underwater….negative equity. 1 in 4 homes are upside down in equity. Simply put, if you walk outside your front door and turn either way, every 7th house=homeowner is in default. Better know as pre foreclosure!
Here’s another startling fact: 80% of homes that go to foreclosure were never listed for sale! Some of you reading this right now are facing tough choices. Think about it, most of those 80% of homeowners never expected to loose their home. Most likely there were factors that made them believe somehow it would work out.
- Applied for a loan modification and found out too late that the loan modification offered did not lower the payment enough to keep the home. *Keep in mind that during the modification process the foreclosure process does not stop. Unfortunately, by the time the lender gets back to you about the results of the loan modification in many cases the sale date for foreclosure is pending.
- Homeowner accepted a loan modification and was not able to maintain the agreed payments. *Again, these lenders proceed with foreclosure process simultaneous with loan modification process. The foreclosure process is accelerated do to this and when payment arrangements are not kept the foreclosure moves forward.
- Homeowner entered into a forbearance agreement with lender and was not able to make just one payment. At this time the lender does not have to notify the homeowner of foreclosure sale. Home is sold.
- Denial….something that most of us can identify with. First comes the notice of default, then the trustee sale and then the sale date. During this period of time, you have every intention of working this out, somehow, you just know you can save your home.
- Pride….another personality trait that most of us have experienced in our lives. The fact that for whatever valid reason you were not able to save your home, you could not face talking to someone about alternatives to a foreclosure. *Did you know that foreclosures are public record. Your names are posted in the local newspapers, a Short Sale is just a regular sale in the eyes of neighbors, family and friends. You don’t even need a for sale sign on the property. In fact, 99% of our sales never have a sign posted on the property.
We have clients that need to sell for various reasons, some due to hardship and others making well thought out business decisions regarding their future and the negative equity they are facing if they choose to continue holding onto a property that mirrors the neighbors home that just sold for $150,000 less than they currently owe.
If your home is upside down in equity, and you need to find out more about a short sale contact us. We can help you by finding all of your options.
Not only has the United States Treasury stepped in to help homeowners with a new program called HAFA, Bank of America has announced they are going to be implementing what they refer to as “Cooperative Short Sale” this will mirror the HAFA program but have less stringent guidelines for participants.
This is huge coming from Bank of America, as they originated one in every two loans on mortgages in America! We have identified “like” programs with other lenders such as, Wells Fargo, Wachovia, HOMEQ, etc…..
You will be hearing more about Strategic Default as the days move on, many lenders are accepting of these types of sales. Basically, homeowners who have negative equity of $70,000 or more are looking at their home much like an investor looks at their portfolio…time to cut your losses.
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