Short Sales Done Easy

We wanted to discuss the interesting market that we are in once more today. Ultimately, we would like to talk to you about a recent phone call that we had with a client. The client was wondering if it was better to wait it out. Since she is relocating to another state, she thought that she could maybe rent the home for the next few years and then sell the home in the future.

We are not in the business of telling our clients what to do, particularly when it comes to their mortgage. However, it is our job to educate the client as to the decisions that she can make. The deduction that we came to was as follows.

Since she is not in a bad mortgage payment situation based on what she could receive for rent, she would only see about $200 in deficiency per month. She could simply write that loss off as depreciation. However, the key is, if she was simply behind by $20,000, it could be a solid decision for her.

Looking at the statistics from a business perspective, what it would take for her to rent and then sell in a few years makes no sense. The client is $100,000 behind in equity. The house is in an outlying region of Phoenix, giving her a prospective for more depreciation. Every occasion that she is negative on the rent to mortgage payment, she would be tacking on added mortgage to her loan remainder. Over twelve months, she is going to be $2400 in the negative every year. Multiple that over seven years and she will have a extended wait to recover the equity in her home. That is given the top case situation.

Therefore, is it in her best interest to wait it out? After we gave her a cloudless image of how long it will take to regain that $100,000 her only alternative is short sale. She has tried the loan modification, but it didn’t work for her circumstances.

Because the bank is not agreeable to diminish the principal. So the next best thing for her to do is the short sale. These are actual situations that happen every day. As a short sale agent, it is my duty to help you recognize the circumstances and ramifications of your decisions.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

Tagged with:

Filed under: Distressed Properties

Like this post? Subscribe to my RSS feed and get loads more!