Archive for the 'Homes For Sale' Category

May 01 2008

Homes For Sale with a Walkable Score!

Published by Carolyn Thompson under Homes For Sale

Bethesda is truly a walkable town.

For those of y0u who are tired of living your life on the highway consider a fabulous alternative.  Homes that are near shopping, art, libraries and restuarants.

Bethesda, Chevy Chase, Friendship Heights houses are all walkable.

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Feb 25 2008

Homes For Sale - Short Sale vs’ Foreclosure

Published by Carolyn Thompson under Homes For Sale

Many home sellers contact me when they are facing foreclosure or contemplating a short sale.  It is essential to know the ramifications of each situation.

If you do nothing, you don’t pay your mortgage and you don’t make arrangements with the bank to get out of a foreclosure status, you will be foreclosed on.  Many home owners are so overwhelmed by the stress of debt that they don’t have the mental and emotional stamina to work things out with the bank. 

This is unfortunate because filing for bankrupcy or selling your home at a short sale will produce a better outcome.  Especially, when the homeowner is responsible for the difference between what the bank sells the home for and the loan amount plus legal fees.

 If you would like to stay in your home, I suggest that you contact your bank to see if you can negotiate a refinance.  They will ask to examine your financial circumstance with the hope that you can afford to repay the loan if the terms are more favorable.  If they decline to refinance your home, I suggest that you talk to an attorney about filing for bankrupcy.  The funny thing about filing for bankrupcy is that you need money to pay for the attorney.

I suggest that you keep paying your mortgage and find money from other sources to pay the attorney.  Falling behind on your mortgage can only hurt you.

If your income has declined significantly since you obtained the loan then it is unlikely that you will qualify for a refinance.  The loan terms are much more strict than they were.  If you were a borderline borrower, or if you were provided a loan that you know you should not have qualified for, then it is unlikely you will qualify now.

If you are trying to determine whether to keep your home or not, you may want to consider how much it would cost you to rent a similar home.  It is often three quarters of the mortgage amount if you had 100% financing during the height of the market.

The short sale route- you’ve had enough stress and have decided to move on with your life.    I suggest that you determine whether you should have qualified for the loan when you applied.    If you don’t believe that you did, I suggest that you list your home for just below market value.  When you list your home, you MUST state that the acceptance of the offer is only upon third party approval.  The third party is the bank.  You can not sell the home for less than what is owed to them, unless they agree to accepting less or you are planning on coming up with the funds out of pocket. 

Banks will tell you that you have to repay the amount that you are short.  I have negotiated on behalf of my clients to demonstrate that they should not have to pay the amount that they were short, because they never should have qualified for the loan in the first place.

 I prevailed. 

You must take the stance of an injured consumer that knows how things work and that you are no longer going to be taken advantage of.  There is a bit of paperwork that must be completed, but it will payoff.  Just keep hanging in there.  

Once the bank is presented an offer, they will send out an appraiser to determine that the house is valued as low as the offer price.  As stated earlier, they will ask for your income and employment records.  You must provide this in a timely manor or the home buyer will walk away from the deal. 

If you take the effort to do a short sale you may be able to walk away debt free, whereas the debt from a foreclosure will follow you.

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