Some People Take This Holiday Season Way Too Seriously

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If You Can No Longer Pay - You Need To Make Plans To Go

The holidays always bring both joy and sadness to me. I know what it is like to have too much Christmas list left at the end of the money - and I bet this holiday season will be particularly hard on many fellow Georgians.

The recent housing report shows that 1 in 9 homes are in some stage of foreclosure right now, and today I met with a new client who lost his middle management job last summer. Trying to keep a good face on things, he was in the middle of pulling out the Christmas lights to dress up the house when I arrived.

He explains to me that he can no longer pay his mortgage, and that this will be the first time he has missed a payment in the twelve years he has owned his home. Being at retirement age, he has found out that finding a meaningful job is far more difficult than he had previously thought it might be. He’s quickly running out of cash and unemployment benefits and can see he will not be able to keep the house.

What this new client did that was most notable - he called me before he was 30 days late. Yep, this is the first month that he couldn’t pay. I was listing his property before he was 30 days late. That’s very important, as he is giving me the best chance to find a buyer and negotiate with his lender.

I set the list price of the home at a price that is much lower than a recent appraisal for refinance, as  re-fi appraisals are useless as true indicators of value. I looked at which homes had recently sold, what similar homes are pending sale, as well as what other comparable homes are now available that this listing will be competing with. We have time to test out the high end of the market before we get aggressive with price reductions.

My client will get through the holiday season with bittersweet memories of the home he has loved for the last twelve years. He can expect to remain in the house for the next few months, keeping the lights and the heat on while we look for a buyer. We’ll get a buyer in the next 60 days or so, and then close in the following 60 days - or less. Well that’s the plan anyway.

If you’re struggling with your mortgage - you need to make arrangements to protect your credit and minimize your liabilities - and the short sale can do both. Many short sale payment arrangements result in NO deficiency judgments and NO tax penalty. A short sale is always better than a foreclosure.

To start the process of evaluating your options, call our staff loss mitigation specialist Cindy McDanel at 770-572-7002.

As always, if you have any questions regarding real estate in the greater Atlanta area, feel free to contact me here.

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Homeowners Must Qualify To Sell Their Home By Short Sale

You are in a similar predicament to many people in America right now. The tidal wave of foreclosures was caused - in part - by sub-prime lending that used "teaser" rates in the first few years that then escalate to higher payments as the loan matures.

You might be a candidate for a short sale - but only if you can demonstrate that you can no longer afford the home. If the lender believes that you have exhausted your ability to comply with the terms of your mortgage - then the chances of getting you out of that property by short sale are good.

However, if you obtained your mortgage by fraudulent means - such as lying about your income - then the chances of saving you by short sale are slim.

Short sales are reserved for those homeowners who are unable to keep their commitment - but obtained their mortgages in good faith. If you perpetrated a fraud on the lender, you can forget about getting their help in preserving your credit.

Part of  the process for obtaining a short sale approval from your lienholders is providing bank statements and tax returns to help prove your hardship. If you are seeking a short sale simply because your mortgage is greater than the value of your home - save your breath. It ain’t gonna happen.

The first step of our process begins with evaluating the homeowner’s options and desires. For homeowners who want to stay in the property, we examine the options that could achieve that goal - and with new federal programs rolling out, that option will become more available in the next few months.

If our analysis shows that keeping the home will not be an option, we assist with the alternative option of selling the home before the lender forecloses. The short sale process is a lengthy one - so every day is precious and valuable.

The worst thing a delinquent homeowner can do is wait too long to seek help. The goal is to find a buyer BEFORE the lender forecloses. If the homeowner waits too long - there will be little that can be done. We can often postpone the foreclosure if given enough time - but calling us after your home is being advertised for sale on the courthouse steps is a little late.

To start the process of evaluating your options, call our staff loss mitigation specialist Cindy McDanel at 770-572-7002.

As always, if you have any questions regarding real estate in the greater Atlanta area, feel free to contact me here.
 

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