Vero Beach Florida: 2012: No let-up in foreclosure rates anywhere.
It may have been in the mid 2000s that you purchased your Vero Beach home with high hopes and a bright future. Few people at that time were aware of the impending real estate market crash, and worse yet–the great recession to follow. Creating for thousands of homeowners in Vero Beach Florida, hard times upon hard times. Now, circumstances have converged and like thousands of others, you are on the cusp of foreclosure. Perhaps you have already received phone calls and letters from your bank or lender. Your resources have been depleted, there is no more equity, no credit and expenses have increased while income has decreased. Many homes bought in 2004, 2005 and 2006 are foreclosing in 2012. Collapsed real estate market prices have made it impossible to break even if you sell your home.
Your bills are past due and your mortgage payment has fallen behind. Even if now you only admit it to yourself, you know it’s only a matter of time before your lender forecloses, and you are out of a home.
Banks and lenders are not reducing the pace of the foreclosure process, and fact, many are accelerating the pace and intensity of foreclosure actions.
Perhaps you have even had to dip into your 401(k). Perhaps it is already completely gone.
You know you have to do something very soon and the he. While the temptation is strong to simply hold on and wait, it is the worst possible thing you can do in your circumstances.
There is hope for you if you don’t wait too long.
You may have never considered a short sale of your Vero Beach home before. A Vero Beach short sale is likely the optimal solution to your problem both for you and for your lender. In a properly executed and closed short sale, all sides win. The lender wins because losses to the bank on a foreclosed property are up to 30% higher than for a short sale. The buyer often receives a great value for their purchase, and use the seller, especially this year in 2012, can greatly reduce financial and credit damage during this limited window of opportunity between financial distress and foreclosure.
We are Vero Beach short sale agents, professionally trained and experienced in successful marketing and closing of short sales for underwater homeowners.
Don’t hesitate to call us with questions or concerns, but above all, don’t simply wait for the bank to make your decisions for you.
Why not just wait until the bank takes your house? Why volunteer anything? If you’re losing your Vero Beach home anyway, why not hold out as long as you can?
The long term impact of this non-decision is usually severe and can affect you for up to a decade. Bad news compared to how quickly you can move on from a short sale. (Some homeowners who did a short sale have actually purchased a new home within a few years.)
You’ve had extenuating circumstances. If you explain them clearly to your lender, you may avoid a very long-lasting impact on your credit. Foreclosure is so bad that it can be many years before you can buy a home and it can even be difficult to simply rent a decent place to live because of the severe negative credit rating it brings. Your situation may easily allow you to do a short sale instead. Banks use government guidelines about how much money you should be spending on a place to live and those are actually fairly generous so proving a hardship that meets your lender’s requirements may be well within reach, even if you’re able to hold out longer on making payments.
Usually, short sales will result in a smaller financial loss to lenders than foreclosing. They will often eagerly accept a reasonable short sale plan.
Most lenders have a pre-determined criteria for such transactions.
When the lender allows a short sale and forgives debt, that forgiven amount is considered by the IRS as new income. It is normally taxed, but in 2007, President Bush signed The Mortgage Forgiveness Debt Relief Act of 2007. This act and its amendments are very generous toward homeowners fallen on hard times but you must act now because provisions of the act are slated to end Dec 31, 2012.
If your short sale agent is qualified and knowledgeable of Vero Beach market conditions, proper pricing and marketing of Vero Beach real estate, and they are used to understanding the concerns and expectations of lenders, they will provide the highest possibility of success in the sale of your home. Your goal of avoiding foreclosure and preserving much more of your credit standing is more within reach with experience at the helm.
A short sale can become a stressful event with seemly the slightest change in the disposition of your lender or loan servicer. An experienced and prepared Vero Beach short sale agent will be in close communication with the lender and all parties in the short sale transaction.
