Wednesday, June 9, 2010

Should I walk away from my house?



How do I know if I should walk away? Although our local market is not as bad as some areas of the country we are still in a declining market in some areas of town. The experts forecast more decline at worst and ever so slight increase at best for the next few years. If this is in fact the case and you are owing more on your home than it is worth you still have options and bleeding money isn't the one to continue with.
Do I vacate the house now? No! Neither the banks or your neighbors want this. Besides even if you leave you still need to keep the utilites on so that no damage occurs as a result of no heat or water. The bank can come at you for damages if you let this happen. First call an experienced certified Short Sale Realtor to walk you thru the process and then you can make an informed decision that is right for you and your family.
Are there advantages to Short Sale versus Foreclosure? Which process you go thru will depend on your situation but in general short sale is better for you and the bank. Again an experienced certified Realtor will sit down with you and go thru the process and how it affects you. As a rule the difference between the sale price and the mortgage owed is forgiven and you do not have to pay taxes on the difference when you do a short sale.
Will my credit be damaged for life? You can recover from this on average in 3 years and be able to obtain another mortgage. To be clear foreclosure has more of an impact on your credit score than a short sale. Either way it makes no sense to carry a burden in a market that won't change in the near future. As with anything in life knowledge is power and enables you to make good decisions. Make sure you find a Realtor who is Short sale & foreclosure certified with experience.
No Money to Sell? With an experienced short sale/foreclosure Realtor you will have no further expenses to sell your home. All Realtor fees will be paid when the house is sold by the bank. Take a minute call me and let me explain the process over the phone to ease your mind a bit.
Bottom line. Don't stay awake at night worrying. Don't get caught up in a scam that can cost you more money by paying someone to "Fix" your problem. Call me today and get on with your life. I'm sure you have many more questions and I'll be glad to help you answer them.

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