Home Sale Relief

In my role of helping people with short sales and as the developer of the Mortgage Relief Formula home study course, I talk to people who owe more than their house is worth and can’t afford the mortgage payment.

A lot of the houses that people discuss with me are in the $200K range but many are upwards of $! million.

This Reuters article discusses it in plain language:

 The home owners who find it harder to walk away are those who took out large home equity loans before prices started falling and now owe far more than their home is worth.

“It’s difficult for home owners in that situation to sell as they’ll still be left owing money,” said Dave Hanna, managing partner of Prudential Preferred CRE, which owns Prudential Homelife Realty in Hindsale.

Unlike subprime borrowers, however, wealthy home owners are more likely to try to cut a deal with their lender, rather than end up in foreclosure. The alternative solution available to them is to opt for a short sale.

Under a short sale agreement, the borrower sells below the mortgage value and the lender writes off the difference. The lender gets less than originally anticipated, but is not stuck with a foreclosed property. The borrower’s credit rating is damaged, but not as badly as if they had lost the home.

I have clients with $1 million or $1.5 million homes. The other night we had a conference call with one of my colleagues who has done hundreds of nine day house sales which let you sell your house from start to finish in nine days even when there are seemingly “no buyers” around.  We had a few people on the call who have homes of upwards of $1 million.

The problems with those folks is that often they have a second mortgage and they have assets. As I have explained in Avoid foreclosure short sales when you have two mortgages and you have assets  folkw with high end homes and some assets to protect have special issues.

The second mortgage lender may accept partial payment as a short sale but they may refuse to release you from the possibility that they will pursue your assets in the future. The statute of limitations for this sort of thing can be as long as four or five years, depending upon your state.

For information I urge you to visit this link about how they can come after you later  for foreclosure losses, and get my free 25 page important report Keep Your Home Avoid Foreclosure which has details on short sales, avoiding bankruptcy, how to deal with credit card debts and more. I never share your info with anyone and you can phone me at 877-691-DEBT, ext.101 for a private, confidential discussion of your particular situation.