Strategic Default/Short Sale
A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house's price such that the debt owed is (considerably) greater than the value of the property — the property negative equity or "underwater" — and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called "walkaways."
This occurs when a homeowner is able to pay their mortgage but because they are underwater or simply sick of the level of deficiency they decide to stop paying. If you voluntarily walk away from your mortgage because you owe more than the home is worth, are you a bad person? Should you even care?
Linda Wieczorek 602-391-8246
|
Luck
doesn't save you from Foreclosure
Knowledge
and Experience Does!
|
The answer is pretty simple: To secure your financial future, point blank! Let's look at your other options...
1. Do Nothing: Your lender will file for foreclosure against you, and eventually attempt to sell your home at a sheriff sale, where the will not receive anywhere close to what you owe on the property. They will sue you and obtain a deficiency judgement for the difference between the total amount that was owed (including fees) and the amount they were able to sell it for. You will have a completed foreclosure on your credit for 7-10 years or more, and will not be able to buy another home with conventional financing for MANY MANY years.
2. Get a Loan Modification: IF your lender grants you a modification after many months of deliberating, they will take the amount you are behind and add it to your balance (this puts you further behind since you probably ALREADY owe more on the house than it is worth). IF you're lucky, they will drop your interest rate a couple of points. However, due to the amount they put back onto your balance, your saving will not be very significant. A study of modified loans showed that close to 90% of the homeowners were in foreclosure again within 2 years!
3. Just give the house back to the bank: This is known as a deed in lieu of foreclosure. The bank still may have the right to pursue you for a deficiency judgement and if you have a second mortgage company, they will most likely not agree unless you sign a promissory note for the balance. You still must pay the second mortgage!!! This will also have a VERY negative impact on your credit rating!
"So what do I do???"
A Short Sale!!!
This truly is your BEST option! AZPrideProperty.com with your lender to try and make sure that you do not receive any deficiency judgements or promissory notes by actually increasing our purchase offer to the lender! If we make a little less, than so be it! We want our clients to walk away free and clear!
Your credit rating is effected NO WHERE NEAR as badly by a short sale. Your account may say "settled for less than amount due", but again AZPrideProperty.com does everything in our power to make sure not even that shows up on your credit. Generally, you will be able to obtain a new purchase loan for a new home after only 2-3 years! Not 7-10 years like with foreclosure. You don't have to worry about increasing your balance as you do with a loan modification, putting yourself in a position where you now owe EVEN MORE than your house is worth.
Linda Wieczorek 602-391-8246
Certified Short
Sale Negotiator
So if you need to talk to one of our specialists about how stopping foreclosure notices from proceeding further is a realistic alternative, call Linda 602-391-8246 or e-mail Azhomes4u@gmail.com today and let me assess your circumstances. No charge, No obligations.
|
Luck doesn't save you from Foreclosure
Knowledge and Experience Does!
|
We have a team of certified short sale specialists (CSSN), who can offer foreclosure prevention services and will negotiate with your lender to help save your credit.This is a FREE SERVICE
|
"Every 13 seconds another home goes into foreclosure - Nearly 7,000 foreclosure filings per day"
"10 million people are upside-down on their properties and desperately need help."
|
2. You owe more on your property than it’s worth
3. You want to avoid the credit devastation of a foreclosure
4. Your moving to a new area and can’t sell your home or afford double payments
5. You are an investor who got over extended with properties or payments
6. You lost your job or experienced a significant decline in income
7. Foreclosures in your neighborhood or area have destroyed property values
8. You want to avoid a default judgment from your lender
9. Your payments have significantly increased due to an ARM interest rate adjustment
Complete the information form and we'll get right back with you, with
no obligation on your part.
|
We always guarantee your privacy. Arizona Elite Properties REALTOR ®,CNE,CSSN |
