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No one is safe. News stories from across the country tell the tales of both celebrities and average Americans who are all considering selling their homes through a short sale.
Selling your home through a short sale doesn’t need to be a shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.
Late last year, CNBC financial guru Jim Cramer was telling homeowners to ‘Just Walk Away.’ (Watch the video on YouTube.com)
We are clearly in uncharted waters. The current housing crisis is different from all the previous housing recessions. It is well known that many financial institutions sold mortgages in a deceptive manner — for example, by approving people for loans they couldn't really afford — then why should homeowners feel obliged to honor their commitments?
From a homeowner’s perspective, why should they stay in a home that is depreciating? Often times it’s possible to rent the same style home in the same area for half (or less) than their current mortgage payment. Assuming it takes years for the market to recover, the homeowner who sells their home via a short sale now will be far ahead of the person who ‘stuck it out’.
Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
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2 comments:
I live in Detroit and found out that I am almost $50k upside down on my mortgage. My colleague is a realtor and told me that short sale is the BEST option for me right now. But, I have never been late on a payment. What should I do?
If you are not late on payment and would like to save you FICO score, you should try to do a "short pay off" - sell the property for less than you owe and at the same time take an unsecured line of credit payable to the original lender for lets say $7,000-$10,000 with 0%-1% interest for 10-15 years (ask your REALTOR to help you with negotiating with the bank). PLEASE, CONSULT WITH THE CPA AND TAX ATTORNEY AS WELL!!!
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