The real estate market, like the economy, has been in some trying times, and some of you may have experienced this first hand.  If you are having problems paying your mortgage payments or keep your property, you no doubt are wondering what your options are.  There may be a better way to get out of this financial stress and get the "financial monkey off your back."  If you qualify, we may be able to help you get out of your property and avert a foreclosure.  If you have a problem with your loan for your primary home, rental home, mobile home or apartment, we can help.  In fact, there are many government programs that may help as well as a more favorable tax and legal environment to help you get out of financial hardship and allow you to start over, start fresh, and get you back on your feet.

 

Short sales is not a way to get out of a bad purchase.  Just because your home value has come down or your rental property has a negative cash flow is not reason enough.  However, if you are experiencing financial hardship, you can no longer pay your mortgage, you are likely to not be able to pay or nonpayment will be iminent, then short sale may be a much better alternative to a foreclosure.

 

Experts say that doing a foreclosure will affect your credit by at least 100-150 points and prevent you from purchasing a home or major purchase by up to 5-7 years while a  short sale will affect your credit score by 50-100 points and only stop you from purchasing another home in 2-3 years.  This can be a major benefit, especially as the market will eventually turn up and provide a great opportunity to purchase or reinvest in the near future. 

 

Doing a short sale may likely trigger a a tax and/or legal consequence.  Non-payment of any portion of your loan will likely be recognized as income and a tax liability and any loan payment balance deficiency will have legal consequences.  New laws have tried to help people eliminate tax liability if you sell and close by 2012.  Depending on if you have the original loan or you have refinanced before, you could be obligated to pay the deficiency.  Each state has different laws regarding the above.  BE ADVISED:  There may be tax or legal ramifications so be sure to talk to a professional as soon as you decide to consider your options. 

 

Many owners have tried to do a loan modification in the hopes of lowering their payments, interest rate or balance, however many are given temporary modification only to find out later they can not get a permanent loan modification and have been convinced to pay more of their scarce resources and money, while getting no relief in terms or payments.  I say be careful of these banks who say they want to help the "average guy," most are unfortunately paying lip service.  I am disappointed in how many banks are not making it easier, but making it more confusing to stall, buy time, hope the economy will improve, while the masses are in a downward financial cycle.  Be careful of these banks AND especially those who are preying on unsuspecting borrowers hurt financially since the peak of the real estate martket in 2005-2006.

 

Who to trust?  How do you know you are working with the right professional?  That is a good question... it seems that everyone is jumping on the bandwagon to provide a solution... unfortunately many are not good.  Do they have experience and a strong track record?  Do they have additional education or credentials above and beyond the normal agent?  Do they get specialized coaching?  Do they have specialized designations?   Designations are more than letters behind their names.  Are they committed to learning to help you succeed like they are to have their career succeed?  The average agent is only in the business for 1-2 years, which is hardly much when you consider that you are dealing with a value of your real estate transaction that can be the most valuable sale you will likely make?  Does the agent ask you the right questions and offer you multiple solutions?  Will they give you some referrences or testimonials?  This will likely affect you for many years to come so doesnt it make sense to hire a competent and successful professional and really compare the difference?  Remember, all agents are not created equal!

 

Contact our office today for free information or to schedule an appointment to find out your options.  Also, be sure to visit my mortgage crisis solutions website at www.PastDueNoMore.com to find out your options and other government programs you may qualify for. 

 James Endo and team have been in the business for over 44 years serving clients and providing value, so you owe it to yourselves to have the experience and skills you deserve, especially in today's challenging market.  With over 750 purchases and sales completed, we have to tools to help you with almost all of your real estate needs.  I am a broker, and hold many designations and specialty , including Certified Distressed Property Expert, Certified 'Foreclosure Prevention Consultant, Accredited Buyer's Representitive, Certified Real Estate Specialist, and Senior Real Estate Specialist, to name a few.  Prior to real estate, I was a horticulture business owner managing up to 20 employees in Morgan Hill, CA.  We understand that you can not afford to make a bad decisions and pride ourselves on our commitment to our client's goals achievement.  Let us help you make the right decisions when it matters most.