United We Stand,
Divided We Fall!
by Company Magazine's Real Estate Expert Marina Solo
That is my favorite slogan, and I try to live by it's principle. As we all know, it has been a big economic mess in our country with the housing market. There are a lot of different opinions on how we got there; however, I no longer want to talk about it. What I want to talk about is how we can recover and how it could happen fasterâ€¦ if we stand united! What is not helping us are FORECLOSURES. The saddest thing is that the home owner has many choices to avoid going into foreclosure. I witnessed a few ugly situations like that just recently. A house which used to be worth $220,000 now is $170,000. The homeowner did nothing to save it from foreclosure; the bank bought it back on Sheriff Sale and put it back for sale for $129,900! Later, it sold for $120,000! Now, what just happened? I can tell you that similar houses in the same zip code just depreciated from $170,000, well maybe not to $120,000, but probably to $150,000. A few of these types of sales and prices are even lower. If only this homeowner did a few steps to keep this from happening. Foreclosing on your house is totally unnecessary! The homeowner has choices!
*A land contract*, for example, is a sale in which mostly investors will take over your monthly payments, real estate taxes and maintenance of the property. That is a good option if your property is â€œunder waterâ€ by 10-15% and you are trying not to damage your credit. In a few years the investor will have to refinance the property and release you completely.
A *short sale* is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. *Short sales* completed successfully on a daily basis gives the homeowner enough time to move out, saves their credit from severe damage and, most importantly, saves our housing market. Properties do sell for more.
*A Deed in Lieu* of foreclosure (DIL) is a disposition option in which a homeowner voluntarily deeds the property in exchange for a release from all obligations under the mortgage. Some banks will even pay your moving expenses up to $5000. If your house does not go into foreclosure you have a better financial future! Most banks will lend money again to buy a house 24-36 months after a short sale (that, of course, if the rest of your bills are paid). Banks will even finance 96.5% of your next loan! Becoming a consumer/buyer again and being able to buy a house in 2-3 years is important for many people.
Marina Solo is the owner of Peak Performance Real Estate.Â To contact Marina please call (920)425-5555 or Email firstname.lastname@example.org
Article to be published in Company Magazine.Â For more information go to www.CompanyMag.com