Answers (23)
- Brad Reynolds, "Brad reynolds"
- Contributions:174
- Linda Strasberg, "L Strasberg"
- Contributions:2563
4 million mortgages are in delinquency currently, FNMA holds 26% and FMAC holds 11% of delinquent notes.
When you are delinquent, a short sale is a dignified alternative to foreclosure. Effective November 1st, FNMA and FMAC have streamlined the short sale approval process for servicers in an effort to help stabilize the housing market. FNMA and FMAC mortgage backed securtities no longer require the mortgage insurers approval to sell for less than owed when the borrower meets the investors guidelines.
FNMA and FMAC would like not to see any more REO's. Folks that are seriously delinquent need to reach out for help to request a short sale.
- Nazar Kalayji, "NazarKalayji"
- Contributions:502
- Manuel Ramirez, "Experthousebuyer"
- Contributions:57
Selling a house in maximum profit needs deep market analysis. Real estate sales peak in few months and it's always good to sell your property in peak season. I would suggest you to consult some professional expert for the same.
- Peggy Turner, "Peggy Turner"
- Contributions:66
While they may be reluctant to do a complete refinance, many ARMs give the borrower the ability to lock the loan in. The rate will surely be higher than current fixed rates and will be higher than the rate you are currently at, however, if you feel rates are going to increase drastically locking in a rate now could make a lot of sense.
- Elia Cooper, "ELIA COOPER"
- Contributions:1
- SteadyState
- Contributions:873
Thus if you bought at $750K and it's value is now $500K. You will need to sell at $770,000 to break even (providing you did not put additional major money into the home like roof replacement, replace heater/furnace, etc.) But you do have two years to build your career, same money, and be financially in a better state so that you do not need to sell.
- Helen Edwards, "Helen Edwards Broker"
- Contributions:776
- Linda Strasberg, "L Strasberg"
- Contributions:2563
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1263
- Belinda Singh, "westcoastrealtor"
- Contributions:188
- Sam Shueh
- Contributions:379
No economists are forecasting a downturn so far as Silicon Valley goes.
The bottom of the price trough was Q2 2009. The home default rate has radically improved quarter by quarter (Q2 2009 was up to 6.5%; Q4 2010 was down to 2.5%).
Many employed home owners are underwater and can not refi. Few plan to relocate and most plan to stay put. The valley was that way before. After the typ 5 year ownership seller relocated and made $1K or lose some. The speculation and lender craze lead home sellers to think they have to come ahead. The longer one holds on their homes the less likely they will feel the pinch as you have experienced.
Here are the stats for you to contemplate:
Profit in selling homes(CA)
1993-97 $ 40K
1998-99 $ 60K
2000-01 $100K
2002 $145K
2003-07 $200K+
2008 $100K
2009 $ 42K
2010 $ 35K
2011 ?
Those who gave up typ sell their homes via a SHORT SALE.They then try to purchase again some sooner than you think. I got people sold last year and their credit score from short sale did not mar and lenders are now interested in offering mortgage....
Hope you make a good decision,
- Dan, "the_country_hick"
- Contributions:4827
- San Jose CA Realtor
- Contributions:5
- Sue Caballero, "suecaballero"
- Contributions:78
- cubbybumpken
- Contributions:4
We have time and do not need to sell as we are not upside down in our loan, so I just wanted to know if it would not be better to wait and see what our home will be worth in later 2010 or 2011, and when we do sell is it better if we listed it in the spring or summer rather than winter?
Thanks,
Juanita Figueroa
- Jeff Konstant, "jkonstant"
- Contributions:1970
You have provided too little information for all the "experts" on Zillow to offer real and constuctive advice. YOu do only have the four options mentioned above plus the option of remaining in the home.
You should seek the advice of a financial planner and attorney. You need to know what your actual net worth is today, what you project it will be in a year and then in two years when the ARM adjusts. While a foreclosure is terrible in the short term, a continued decline or accelarated loss of net worth may be harder to overcome than a few years without the ability to buy shelter. In many of nor most cases a short sale is no better for your credit rating than a foreclosure.
An attorney will guide and advise you according to your contractual obligations and state laws. You should begin today rather than put off what is going to be uncomfortable before it becomes unbearable.
- Brenda Jones, "brendajones"
- Contributions:16
Are you happy with where you live? You can afford your payments now, but can you afford them after the rate resets? If you plan to be in your home for many years, prices will go back up. I know it is upsetting to be upside down, but if you like your location and do not have to move, maybe an option is to wait it out. Of course, if you can not afford your payments after the rate resets, your options are as the others have said. Check to see if you can do a loan modification
http://makinghomeaffordable.gov/ This site will guide you. Don't pay someone to do the modification for you, work with the bank yourself. The website will help you determine if you qualify.
- Jeff star, "ShortsaleAgentofAZ"
- Contributions:967
I don't understand what you mean in regard to "you need to be able to afford te monthly payments for 2 years before you can ask about the value"? He only really has 4 options if he's upside down, short sale, loan mod, deed in lieu of foreclosure or just foreclosure.
- Grace Keng, "Gracesellhomes"
- Contributions:367
If you are not make the monthly mortgage payment, then you need to look the other options. There are many options but I can tell you that you need be able to afford the monthly payment for 2 years before you can ask about the vaulue.
- Tristan Celayeta, "Tristan Celayeta"
- Contributions:400
Nate,
The future is speculative so that's what you get back - speculation. Most economists feel we're at bottom but the rate of growth, the shape of the curve, is dependent on many variables.
HopeNow.com, 888-995-4673, provides free qualified counsel and guidance for folks in mortgage distress.
If short sale turns out your best option read this paper that explains the process and bookmark the page, part of a superb free online real estate primer.
Best fortune... legislation and regulation are in flux, shoot everything is, so keep at it.
- workabee
- Contributions:1073
- Jeff star, "ShortsaleAgentofAZ"
- Contributions:967
Sell now or in two years?
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