Archive 2012

35,000 Great Reasons To Do A Short Sale

Thinking About A Short Sale? How Does $35,000 Sound?

That’s a lot of cash. For one of my clients who sold his house as a short sale in Maryland last month, that’s exactly how much Chase Mortgage gave him. Why don’t more people know this is possible? Odds are good that their Realtor isn’t even aware!

A few short years ago getting any proceeds from a short sale was harder than winning an Olympic gold medal, but then the government released the Home Affordable Foreclosure Alternatives (HAFA) program, and suddenly homeowners were seeing up to $6,000 in proceeds from their lender in exchange for successfully completing a short sale.

Why HAFA Isn’t As Cool Anymore

There were a few problems with the program, however. The guidelines were limiting, the banks never help up their end of the agreement, and sellers were left frustrated. The problems weren’t a complete surprise; frustrated home owners at risk of foreclosure are already used to the bureaucracy involved in government sponsored loan mod programs, why should a government sponsored short sale program be any different?

Banks Are Giving Home Owners Big Bucks to do a Short Sale

All of that is starting to change. Banks finally started looking at the cost of actually foreclosing on people (especially here in Maryland, where the process averages 3 years!) and they realized that the lost a lot less money by doing a short sale! Thanks to a number of factors, banks have started paying people to short sale their home!

Lenders are cutting some pretty big checks, too. Instead of a $6,000 maximum, we are closing deals for sellers with banks contributing up to $35,000 in relocation assistance in exchange for the short sale! Not only that, but they are guaranteeing to waive any deficiency on the seller!

People that are underwater and struggling with their mortgage payments have been quietly handed a golden opportunity to cut their debt and start over. The lenders have even sent out letter encouraging people to consider the offer, but many are ignoring it completely, assuming that the latest letter from the bank is just more bad news.

Short Sales Make A Lot Of Sense

Short sales are about more than just facing a financial hardship with your home. It’s a chance to erase debt, buy again in 2 years, and put your massively underwater mortgage behind you. All that being said, it’s a lot easier to work towards that goal when your bank is paying you to do it!

Want More Information About Doing A Short Sale?

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Maryland Short Sale Calculator – How Long Will It Take You To Break Even?

short saleAre you underwater on your home’s value?  Over 30% of the country is currently underwater, but most home owners don’t know how long it’s going to take for them to break even again on owning their home.

Our calculator is designed to help people figure out how many years until their home is an asset rather than a liability.  Most people don’t realize that by doing a short sale you could actually buy another home again within 2-3 years of doing a short sale, whereas waiting out the market could take 7-10 years.
Our calculator is completely confidential and free!
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Do You Need to Stop Making Mortgage Payments to Qualify for a Short Sale?

Short sales are a great way to wipe out your debts, but it can be a hard ball to get rolling. If you tried to get a loan modification and you’re nearing foreclosure, you most likely already qualify for a short sale; but if you are just starting to fall behind on your mortgage payments or are upside down on your mortgage, you may not be there yet. Getting your lender to authorize a short sale will mean finding a buyer and getting everyone who holds your debts to agree to the sale price.

You Can Still Make Your Payments During a Short Sale

Contrary to the information that’s out there, you can keep paying on your mortgage until the home is sold, depending on the lender. You may even be able to salvage your credit and be in a new home as long as you weren’t delinquent on your payments. If you’re not able to sell your home on a short sale offer, you’ll be able to cancel the listing and stay in your home, and keep making your payments. While this isn’t the happiest outcome for someone who needs to relieve themselves of a mortgage payment every month, you’ll be able to stay in your home and you won’t be penalized.

If You Choose to Quit Paying Your Mortgage During a Short Sale

If you choose to quit paying your mortgage payments and pursue a short sale offer, there are some benefits. First, if your house doesn’t sell you’ll have enough money to move out and move on; I don’t even have to go over all of the expenses of moving in Southern Maryland. If the bank isn’t getting your hard earned money, they’re more likely to agree to a short sale to recoup their losses, but they may pursue a deficiency judgment against you if they’re unable to get the full debt repaid.

If the Short Sale Fails, is Foreclosure an Option?

If you can’t find a buyer for your Southern Maryland short sale home, you may face foreclosure for stopping your mortgage payments. This is just one of the consequences you might face for not paying, so you need to be prepared just in case. Many people start down the road to a short sale, stop making their payments and inadvertently end up in foreclosure; with the right Southern Maryland real estate agent (like me!) who specializes in short sales, you’ll have a better chance of avoiding foreclosure and saving your dignity.

If You Stop Making Payments and a Short Sale Succeeds

Congratulations, you’ve escaped foreclosure! But if you stop making payments you may face derogatory reports on your credit to the big three bureaus. You’ll also have to wait 2+ years to qualify for a Fannie Mae mortgage.

If you want your short sale to succeed, you need a southern Maryland real estate agent that’s been through the process before and can guide you through it. Check out my short sale information form here.

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