I find most homeowners take the pride of home ownership very seriously as well as the commitment to pay for the home. When bad things happen to good people, it is always an unfortunate circumstance that can often prompt tough decisions that need to be made. So when is it a good time to consider a short sale?
Well, think about this. A few years ago, when prices were increasing by the day, if one hit hard times, it was no question you could sell and even turn a profit in most cases. It was really great! There were no worries about being stuck with a mortgage you couldn’t pay because the home would often sell before the next mortgage payment was due anyway. Then times changed. We are now in a global recession where prices are lower and unfortunately, continuing to go down in some markets by the day. So today when you hit hard times, the chances of selling and turning a profit are not as likely, matter of fact, the odds are that person may actually be upside down in their home value meaning they owe more than the home is now worth. This is when one may want to consider a short sale.
The most important thing is to do an independent study on your situation. If someone has one hundred thousand dollars sitting in the bank and they don’t want to touch it to make the payments because they know they’re upside down and don’t want to waste the money, that will not work. However, if someone has limited resources (in liquid accounts, NOT including retirement accounts), then they be a great candidate for a short sale because they simply do not have the means. So, as you can see, it all depends upon the situation.
If you would like to discuss your situation with me, please do not hesitate to call and ask. I will be happy to do so.
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