A Short Sale Success Story in Watertown CT
There are still many people in Connecticut that are struggling with paying their mortgage. Unlike the rest of the country, many Central Connecticut home owners are underwater.
Bad things happen to good people. In Watertown CT home values have not yet recovered to allow people to get out from under the burden of their homes. Home values have fallen back, and in many areas have reached a stable range. The market is, however, affected by home owners that have just walked away and allowed the home to go into foreclosure, or have made an active choice to get their home sold by means of a short sale.
Such was the case for the family of this home in Watertown CT. They had a justifiable reason for not paying their mortgage and reached out for help. After a consultation, and all the documentation needed for their lender was prepared, their house was placed on the market.
Like any other single family home, the house had to be placed into the market within fair market value for its condition. We received an acceptable offer within 2 weeks of being on the market.
The short sale documentation was sent forward to their servicing agency on January 13, and as the mortgage was owned by Fannie Mae, it as loaded into their system as well. Allowing for their time to review, the lender sent out their appraisers to verify the value of the home. As a result of a properly prepared short sale package, the lender approved the short sale with an acceptance letter on February 10, with full waiver of deficiency.
The timeline for this family: Consultation early December House placed on market Dec 19, 2016 Acceptable contract for the home received and executed Dec 30, 2016 Documentation package sent to bank Jan 13, 2017 Appraisal performed for bank on Feb 4, 2017 Settlement Agreement received Feb 10, 2017 Closing to be completed no later than April 5, 2017
When all options for relief of the mortgage burden have been exhausted it is possible to attempt to sell the house as a short sale and resolve the mortgage differential with the bank with their cooperation.
First, the definition of a short sale is when the bank agrees to accept less than the value of the outstanding mortgage on the home as payment for the note. This is accomplished by first staying in contact with the bank, and by finding an experienced short sale real estate agent that understands the process, and has successfully taken homes to completion of the process. The short sale process is getting to be so common, that many banks will suggest area real estate agents that they trust to get the job done.
The banks and the agent will need to thoroughly discuss the requirements with the home owner, always maintaining professionalism and confidentiality. Not everyone may qualify, as there are specific hardships that the banks would recognize and allow as cause for a short sale.
These hardships are as follows:
Unemployment: No job no revenue stream to pay the bills Reduced Income: If both incomes were required to make the purchase and one person lost their job or had their job downsized, the balance has been disrupted.
Divorce: If they can’t live together they certainly can’t maintain the home together.
Separation: Similar to divorce, but a legal separation would be needed as evidence
Medical Bills: Medical costs can be staggering and easily pull a family’s finances down.
Too Much Debt: Credit cards and time payments can also get out of hand.
Death of a Spouse or Family Member
Payment Increase: This can be caused by an adjustment common with adjustable rate mortgages, or over time with escrow tax increases if a municipality or county has fallen on hard times.
Job Relocation: Even if the income is sufficient, you can’t be expected to maintain 2 residences.
A combination of either of these issues which individually may not create a hardship, but together creates a burden that causes the home owner to fall behind on their payments.
Banks do not want to be in the real estate business as every home that sits in their inventory as a non performing asset takes away working resources that they can be using to help other people.
Even with the banks on board with a short sale, there may still be those persistent phone calls and communications from the loan servicing departments of banks, as often within a bank, one department doesn’t understand what another department maybe doing on the same issue.
Short sales are not simple, but they can be productive and when the agent handling the short sale understands the process, they do work. When the system flows properly, the time to close on a short sale can typically be similar to that for a conventional sale, with the new buyer getting a deal on a home and not having to deal with the issues created by a vacant foreclosure.
Short sales do work. If you are trying to avoid foreclosure in Central Connecticut and are in danger of losing your home, we can help. Call my cell at 203-206-0754 or email me for an appointment to sit down and discuss your problem.
A Short Sale Success Story in Watertown CT
Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!
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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott
Ed Silva RE/MAX Professionals, www.edwardsilva.com 203-206-0754