Home > Blogs > New Hampshire > Hillsborough County > Manchester > Do you owe more than your house is worth?
195,930 views

Scott Godzyk's Blog

By Scott Godzyk | Agent in Manchester, NH

Do you owe more than your house is worth?


Here in Manchester NH about 1/3 of people who have to sell their homes, owe more than their house is worth in today's market. Some owners can no longer afford their payments and think foreclosure is their only option. Other home owners need to sell due to being transferred, marriage, divorce or illness and just owe too much also assume they can not sell.


There are options for all of these scenario's. A Short Sale will allow you to sell your home at the market value and asks your bank/mortgage company to accept this lower amount. A Short sale often costs the seller no out of pocket expenses.



THE BASIC PROCESS OF THE SHORT SALE

1. THE FIRST STEP
:  In order to complete a short sale, a seller must be able to show a "hardship". Some examples are: not being able to afford your monthly payment, losing a job, illness, divorce, death or job transfer to another state.

2. THE MOST IMPORTANT THING is to choose a local Realtor who is experienced in listing, negotiating and selling short sales. Beware of out of state companies or people who promise you things that sound too good to be true. If you live in NH, call us first for experience that makes a difference.

3. STARTING THE PROCESS. You will need to gather your last 2 years tax returns, last 2 pay stubs, 3 month bank statements and a list of income and expenses. The listing agent or negotiator will complete a title search to see how many liens or if your home is in foreclosure. 

a. The listing agent or negotiator will make preliminary contact with sellers bank to obtain any specific forms or instructions they want or need to complete the short sale

b. The listing agent completes a broker price opinion. The home should be priced at or just below market value. Pricing a home too low, will result in the short sale being counter offered or refused.

c. The listing agent markets the property in search of potential buyers and offers

4. RECEIVING AND ACCEPTING AN OFFER. The one thing to remember is the sale is between the buyer and the home owner, not the buyer and the bank. The seller should choose the 1 best offer to accept and submit for approval. The buyer should be ready to close wthin 30 days of the acceptance of the short sale by the sellers bank. If the house needs any repairs, they should be noted in the initial offer, not left to work out later.
 
5. SUBMITTING THE SHORT SALE FOR APPROVAL. Once an offer has been submitted and all the sellers financials are gathered. The listing agent or the listing agents professional negotiator will submit the short sale package to the bank. The short sale offer and package MUST be complete or will be rejected.

6. THE SHORT SALE APPROVAL PROCESS. Once the bank gets the file, the bank will assign a negiotiator for themselves. This could take 1-2 weeks. They then will review the package, if complete will order an appraisal or bpo within the first 2 weeks. It could then take 2 more weeks to finish the appraisal. Once it comes in, the negotiator will review what the home is worth versus what they will receive from the short sale against what they would receive if they foreclosed. This could take 2-4 more weeks.

7. THE BANKS RESPONSE TO YOUR SHORT SALE.  In whole and on average, it takes 2-3 months if you have only 1 mortgage. The response from the bank can be either to accept your offer as is, or they can counter the offer trying to reduce the costs of the short sale by asking the buyer for a higher price, better terms or money from the seller. Worst case is they deny it outright if the seller does not have a hardship of if the offer is just way too low.

==========

The 2 most important things to note are:

1. Use an agent who is local and well experienced in listing, neogtiating and selling short sales. Here in NH you can call on us for results. We are locally owned and operated and are well experienced with short sales in NH. We will guide you through each step of the short sale selling process.

2. A short sale should NEVER be considered approved unless received in writing. All offers, counter offers and such should always be in writing for your protection. No matter what a short sale will only go as well as the listing agent is experienced in short sales and who is doing the negotiating for the seller? If they are not experienced, the short sale process will be much more difficult. It is common for tough short sales to go 3-6 months. One of the most important things is for the seller to stay in their home, leaving the home early, lessons your negotiating power with the bank.

If you are looking to buy or sell a home in New Hampshire, please call us first. We strive to provide the best in personal and professional service through each step of the buying and selling process.

We offer * FREE * BUYER REPRESENTANTION - ask us how we can help you buy a home here in New Hampshire. (*please contact us for details and conditions*)

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees. WE GET RESULTS!!!

If you need to sell a home in New Hampshire I can be that agent for you. I strive to provide the best personal and professional service through each step of the selling process.

We stand by you through every step in selling your home.

PLEASE SEE SOME OF MY MOST POPULAR BLOGS

1.
IS A SHORT SALE FOR YOU? Tips and advice for sellers who owe more than their houses are worth.

2. TIPS AND ADVICE FOR BUYING A BANK OWNED HOME

3.
CAN I PURCHASE A HOME THAT IS IN FORECLOSURE?

4. FULL LIST OF TIPS AND ADVICE ON GETTING A MORTGAGE

5. TOP 5 WAYS TO KNOW IF "NOW" IS THE TIME TO BUY A HOME

6. 5 MYTH'S ABOUT TODAY'S REAL ESTATE MARKET

7. SHOULD A BUYER USE MORE THAN 1 AGENT TO BUY A HOME?

8. TIPS AND ADVICE FOR BUYING A SHORT SALE

9. ARE BUYERS WAGING WAR AGAINST SELLERS?

10. DO YOU OWE MORE THAN YOUR HOUSE IS WORTH?

 
ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...

If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.

Comments

By Scott Godzyk,  Wed Nov 9 2011, 09:13
Thank you for the comment Jim
By Jim Simms,  Wed Nov 9 2011, 09:51
Anytime Scott, keep up the good work!
By Scott Godzyk,  Wed Nov 9 2011, 10:04
Thanks Jim, it's a good feeling when you can help
By Jim Wiznerowicz,  Wed Jan 4 2012, 12:07
For those of you with jumbo mortgages who are upside down ($417,000.00 in most areas of the country, but as long as it's jumbo, it applies), there is a viable alternative to walking away, strategic default/foreclosure, short sale, loan mod, etc..
This option is not any of those preceding options or a government program of any kind. This only applies to those with jumbo mortgages though.
You do need to meet some criteria to qualify though. First, as stated before, it must be a jumbo mortgage and be upside down. Second, your credit score should be 720 and above. Third, you must be current on your mortgage payments and not have been in default.
So, if you want to keep your home, drastically lower your mortgage principal and create instant equity, not destroy your credit, I can help!
Please email Jim Wiznerowicz at: jumbohelp@reagan.com with your contact information and I'll explain the process to you so you can make and informed decision as to whether this is an option that you may be interested in.
I look forward to helping those that are interested!

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer