Strategic Short Sale - what is it & is it right for you???

It's possible that up to 45% of our market is “distressed” property, meaning short sale or foreclosed homes.  So I thought it might be beneficial to take a quick look at this distressed segment and offer some alternatives if you or someone you know is feeling the pinch of a mortgage that’s eating up too much of the monthly budget.

A Short Sale is when the lien holder(s) agree to accept less for a property than is owed on the mortgage(s).  Being "up-side-down" on your mortgage means the mortgage is higher than the current value of the property.  Short Sales can be a better choice than loosing your home to foreclosure for a variety of reasons:

   - Its a softer hit to credit scores

   - You can continue to live in/rent the home while the short sale process proceeds

   - It falls off your credit history sooner 

   - Short Sale homes don't typically sit empty for months so they can be more appealing to Buyers

Is a Short Sale Right for You?

A recent client called and shared this story:

            “My neighbors went into foreclosure 2 years ago and it deeply effected the value of our home so much so that my house is now worth $100,000 less than we paid for it back in 2005.  We paid $335K for the house and now the market is showing the value at closer to $250K.  We owe $290K on our two mortgages.  Our youngest heads off to college in 6 years.  We’d planned on downsizing at that point in time.  Our monthly mortgage is simply too high and we don’t think our house is going to appreciate fast enough to get us back to what we paid for it, let alone give us any equity.   So we are looking at paying a mortgage for the next 6 years that’s too high and when it does come time to sell it will most likely cost us to sell.  What would you recommend?” 

Another version I often hear is this one:

        "When we married and moved into my husband's place I decided to keep my townhouse as a rental.  But I've had to pull a minimum of $200 out of pocket every month over and above the rental income.  I know I'm at the top rental price I can charge.  I'm tired of loosing money every month & I know I can't refinance right now.  

After a bit of conversation, both decided it was best to do a “strategic short sale”.  Want to know more about this option?  Send me an email - La@ThrivingArtistAlliance.com