Have you already had a CMA done by a Realtor? A short sale is not an option if you want to upgrade. I suggest you go to a few FSBO open houses this weekend and talk to the owners about their experience. It can be done but you will have to offer out a smaller percentage to a buyer's agent. The ups and downs of selling yourself are too lengthy to go into in this forum. I can tell you that one of the biggest problems with completing a transaction today is the ability for a buyer to get a mortgage even after they have been told that they can. Having knowledge of the current mortgage guidelines can save a lot of problems.
I work on the North Shore and currently have two clients with accepted offers in Peabody. One is a short sale and one is bank owned. I would be happy to meet with you to go over your options and If you decide to go ahead and try yourself, perhaps I could help as a facilitator if you find your buyer. Let me know if I can help!
Keller Williams Realty
i understood that were two points to your question. I apologise if i understood wrong.
My point is that by doing a FSBO you could save from 2% up to a total 5or 6 % of the sale price,
depending if a buyer's agent is involved and how you decide to address that part of the commission,
if you do decide to offer one. As President Obama stated and every logical creature knows, we are for
the long run, it will be a buyer's market for a while. Also MASS RE market review shows that AVG sale price is -9.3% and Mediam Sale Price -10.1% 2007 VS 2008, and off cource you could have a better data for your exact location which your exact market drop for the year after based on your year of purchase, cause every location is unique and every local market has different averages . Even by using the above averages you gain money. My suggestion was based on how you could maximise your benefits under this market which was mistakenly understood and derived from your comment ".... With no equity and the likelihood we will owe the bank thousands.....". Particularly you statement owe to the bank thousands.
Again i apologise if i misunderstood you. Now why would a lender do that, there are a lot of different
reasons, every situation is unique, avg days on the market keep rising, future unpredictability of the market as well as the home owner, etc, and maybe one of them is called taxpayers $700 billion bail out to the lenders. Good luck to you.
Jan McCoy Properties
Idaho & Washington
the proper term is Loan modification: This is a process whereby a homeowner's mortgage is modified and both lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, increasing the loan term, forgiveness of payment defaults & Fees, or any combination of these. And in your case reducing the principal balance, based on your info. Good luck. Yanni
you also might be able to do a loan modification. In one of my transaction i run into a loan modification company. This program is offered by lenders to home owners that are not late in their monthly loan payments and with good credit. They are some other criteria to qualify too.
You can hire a company that will be paid out of the transaction. Basically an appraisal is done reflecting the current market value and their loan negotiators communicate with the existing lender(s) to agree to take less than what it is owed and at the same time that intermediary company has a new lender-investor willing to give you the new loan. I hope this is helpful,if you need more info or details on this program please feel free to contact me and can email you the company's contact info, etc.
Thank you Mike Giles for your answer. I will give you a call later today.
Intero Real Estate Services
Silicon Valley Specialists
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