Know Your Options!
Many homeowners are faced with mortgages that are “underwater” and want to know what they can do about it. No two situations are alike so it is very important that you understand all of your options so that you can make an informed decision based on your individual needs and goals.
Wizards of Waz Real Estate is about PEOPLE, not properties. It is our goal to provide you with all of the information at our disposal to assist you in making the right decision.
Here is a step by step guide.
Know what your home is worth
Before you can reach a decision, you need to know the current value of your home. Although there are numerous “home valuation calculators” available, most use flawed data due to the ever changing market. Only a knowledgeable real estate agent can provide you with an accurate value. Click here FREE HOME VALUE ANALYSIS.
Options to explore when you are facing a short sale or foreclosure
The first option to explore is whether or not you can sell your home in a traditional way. Many homeowners will rule this out as the value of their home is far below the amount owed and they do not have the ability to make up the difference with “out of pocket” cash. However, due to historically low inventory levels of homes for sale, this may be a viable option for some. This is why an accurate Home Value Analysis is so important. Check out the marketing plan for a typical sale. Find out your closing costs.
Leasing Your Home
Although this is not an option for most, it is still an option to consider for homeowners that need to relocate or have the ability to purchase another home. With home values “hitting bottom”, purchasing another home and using their current home as an investment property may be an option. Obviously, you will need to take into consideration the difference between what you will receive in rent (along with property taxes, HOA dues, etc.) versus how monthly payments are. With the housing market unlikely to rebound in the short term, a negative monthly cash flow may not be in your best interest.
If a reduction of your monthly payment could make the difference between keeping your home or not, this should be the next option to explore. The most common of these is the government sponsored HAMP program. If your loan is backed by Fannie Mae or Freddie Mac, a new refinance program will be implemented after the first of the year that may offer substantial savings. In addition, individual lenders may consider modifications. Restrictions and guidelines apply in most cases and we can help you sort through these options.
If, in fact, you have ruled out all other options and are faced letting your home go to foreclosure, a short sale may be your best option. A more detailed explanation of the process can be found here, but you are asking the lender to accept an amount less than you owe. The impact on your credit may be less severe than a foreclosure and you may be able to receive a cash settlement of up to $20,000 or more. Although it can vary widely from lender to lender, the process will normally take 90-120 days. A large percentage of short sales fail, mostly due to lack of expertise, so it is very important use an agent that has a strong background in short sales and has successfully completed them with numerous lenders. *The difference between a short sale and foreclosure
Regardless of the steps you take, if you stop paying your mortgage foreclosure becomes a definite possibility. It is important for you to know how the process works and what steps you need to take to avoid this from happening. In some cases, foreclosure occurs regardless of what you do (short of becoming current on your mortgage) and we offer tips on how to have this go as smoothly as possible with the least amount of stress. You may also be able to receive cash for moving expenses.
Frequently Asked Questions:
- Is it true that I can receive $3,000 for SS my home
- How long does it take?
- What do I need to get started? (Document Checklist)
- What is my home worth?
You have more options than bankruptcy or foreclosure but you must act fast to save your financial future. Contact me now to find out your next step! 480.390.5043 firstname.lastname@example.org