Short Sales
In todays real estate market many homeowners are finding it difficult to keep up with their house payments. If a home was purchased for $250,000 in 2006 (now worth $87,000) using 100% financing, based on unrealistic speculation on home values, add to that the national job market condition and this is a recipe for disaster.
When the real estate market in Phoenix took a nose dive home owners were looking for an answer, they scrambled to make payments, work a payment restructure out with the bank, lower principle, something, anything to make it all work. There have been many promises made from banks regarding loan modifications, some like Home Affordable Mortgage Program (HAMP), the governments attempt to ensure banks are helping the public, have not been effective.
Banks claim that their loan modifications are part of the answer. We see these modifications being rejected or so nominal that it is virtually ineffective. Clients get the impression that hiring a company to negotiate a loan modification for the last $4,000 dollars they have in their bank account will erase all the woes of a depreciated home price, why shouldn’t they believe this, its what the banks want you to think. This is simply not the case. It sounds really nice, I wish it would work, however the only method that I have seen work for clients is the short sale.
In a short sale we negotiate with the banks in order to have the market value or sales price satisfy the sellers obligation with the financial institution. There are many different potential outcomes that occur while dealing with short sales. The bank will issue an approval letter detailing the acceptable terms, we will have an opportunity to view these options and accept or reject these terms.
Since there are many moving parts when it comes to understanding bank approval, we must recommend using a licensed attorney, and CPA to help evaluate the potential outcomes of each individual letter.
Here at Occasio Realty we are experts in getting your home on the market, getting an offer accepted and submitting information to the bank. We specialize in our scope of practice and recommend you speak with other professionals regarding theirs.
If you would like a free consultation regarding your homes values, or options regarding short sales please fill out this contact information sheet.
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