As we work through our new economy and real estate market, I continue to receive lots of questions on short sales and foreclosures. Many homeowners want to stay in their homes even thought the value of the home has declined in the last few years. I’ve helped several homeowners to re-finance or re-structure their current loan (loan modification) leading to a lower monthly payment. Yes, I am not a lender or mortgage banker. I do work with the top lenders in Central Virginia on a daily basis and can often point borrowers in the right direction. After a confidential conversation on the current mortgage and where they want to go with payments, length of loan, etc., we work together to develop and execute a plan of action. The sooner in the process we have these discussions, the better!
Sadly some homeowners need to consider a short sale (selling for less than the current mortgage loan balance requiring lender approval). The rules for short sales vary from lender to lender and change often. Getting good legal advice and building a team (REALTOR for marketing & negotiating the sales contract plus an attorney knowledgeable in short sales to negotiate with the lender or lenders if there are multiple loans on the property) remains a key component to a successful short sale. We also continue to see homes going through the foreclosure process (the lender taking over ownership due to a delinquent mortgage). To be successful in with a short sale requires effort by the homeowner, REALTOR and attorney plus an occasional accountant, etc. Sometimes when working a short sale the lender initiates a foreclosure. Here’s a Richmond Times Dispatch article with an attorney’s advice for this situation. The sooner the short sale process begins, the better chance for a successful short sale avoiding foreclosure. If you or someone you know faces a mortgage challenge, please ask questions. The only bad questions remains the one you do not ask. I’ll wrap up this post now since each short sale continues to be unique.
If you know someone that currently or will soon be challenged by thier mortgage and could benifit from a confidential discussion, let’s talk. I am here to help!