Can’t make the payments on your home? You are not alone. But, if you are thinking your only choice is foreclosure, you’ll be relieved to know that you have more options than you think.
As the market continues to change, more and more people will find themselves facing situations such as job loss, mortgage rate changes or personal hardships. These circumstances may result in their finding the inability to meet their financial obligations.
There are several steps that can be taken. They can apply for a mortgage modification, a repayment plan or perhaps even entertain the prospect of a "short sale."
In this economy, we often find that the market value of a home is less than the debt owed to the financial institution. When that occurs and the homeowner can no longer make monthly mortgage payments, a sale is negotiated where the bank agrees to take less than the balance owed on the loan. "Why?" you ask. Banks do not want to be in the business of real estate and are already inundated with properties that have foreclosed. They would much prefer to cut their losses and recoup monies that would otherwise be cost -detrimental in the future. From the homeowner’s viewpoint, a short sale is far less detrimental to their credit record, whereas a foreclosure can sometimes affect their long term credit score by as much as 350 points. The ability to move on with their life and secure future housing is greatly increased with a short sale as opposed to fore-closure. It is for this reason the short sale is a viable option for both parties and is largely underrated in today’s real estate practice.
Most agents/companies now find themselves not equipped with the skills needed to negotiate with banks nor do they have the compassion and understanding of the emotional repercussions of such a life changing event.
Because of the growing number of families that will need agents to help them with their specific needs, it has become necessary to expand our knowledge in order to service the community as best we can. Obtaining the necessary certification to do this has not been an easy process. Therefore, in keeping with this ever-changing market, we at Legends Realty Group have taken the necessary steps to obtain this certification and have become Certified
Distressed Property Experts.
We welcome the challenge of assisting those who feel they’d like to explore their options and we are confident that we now have the knowledge to do so.