Home values plummeting, home equity shrinking and a stock market that has experienced the worst free fall since the 1930’s. 401k’s that seem like 101k’s and adjustable rate mortgage payments increasing. Some of our clients have expressed an interest in refinancing their current loans, only to find out that they are “upside down” with their current mortgage. In other words, their loan amount either exceeds the current fair market value or the loan to value is too high for the bank to issue a new loan. The Government is encouraging the banks to work with homeowners with offers of mortgage modification programs in order to gain a more permanent solution than their existing loan provides. Some of our clients will have to sell their homes for a variety of reasons and may have to try to negotiate a “short sale” with the Lender. A short sale is when the home is listed at fair market value, but is below the current mortgage amount, in essence asking the bank to take a loss and accept less than the current loan balance.
What to do? As always we have been very involved in counseling our clients in the best approach for their unique situation. If loan modification seems like a good course of action, we can refer you to an excellent company that specializes in working with your Bank to try to come up with a plan that may be acceptable to you.
If a short sale is the only way to go, then we can help there also. We are experienced in short sales and know how and who to negotiate with, in your Bank to get your home sold. Short selling can be very frustrating and time consuming, but if handled right can have a less damaging effect on your credit score, long term. If you would like to read additional information on the process, please visit the below link:
http://www.dugganteam.com/shortsale.aspx
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