SHORT SALES - DO YOU UNDERSTAND THEM?
Short sales. You see them everywhere. Perhaps
you are thinking of doing this with your property. As realtors, we have been faced with a market that is to put it mildly, crazy! Homeowners who are upside down in their property (owe more than the property is worth) are facing heart wrentching decisions…do I leave my home? What choice do I have. Especially if you bought at the height of the market and perhaps you’ve had a curtailment of income.
Statistically speaking, few homeowners contact their bank directly. However, to be fair, most banks are so overwhelmed that they are not able to take good care of their customers–this is not an excuse, just a fact. The process is getting better because this market is not going away anytime soon. I saw an economist on a news show today that said that if the banks don’t “re-adjust” the mortgage value of the home (when they are so under water), we will have more trouble getting the economy back on track.
The loan modifications won’t do any good if your property value is not increasing. This is particularly true for hardest hit areas. So, people try to short sell their homes. You should always seek appropriate financial/legal counsel when it comes to short sales or foreclosures. The short sale WILL affect your credit.
