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So you are under water?

Feel like this is your house?  Short sales do work if you have your expections set correctly!

Feel like this is your house? Short sales do work if you have your expections set correctly!

This article on from the Wall Street Journal appeared on my radar: “So You Are Underwater What Is Next?” It discusses different options for those underwater and mentions the ethical dilemma that those who could make there payment but don’t really want to, when their house is worth way less than their mortgage.

The options options mentioned are to walk away with out doing anything, to short sale your home and to just rent it out to someone else are discussed briefly.  Although all those options represent not living in the house, they are all very different in terms of their effect on the home owner.

For many people in such a situation the very best solution is to sell their home on a short sale.  Renting out a home is not an option for many upside down owners because the market rent on a $400,000 home worth $250,000 will typically only cover a portion of the actual expenses.  By the time the homeowner downgrades to a more affordable home and makes payments on that home while having to make partial payments on their old home they may as well as not moved.

Just walking away from a home and letting it foreclose has major credit and financial repercussions.

The article actually kind of talks down short sales and labels the short sale process as painful.  I assume the author is referring to the reputation of short sales as being a long and drawn out process.  However many lenders are getting more an more streamlined and short sales are becoming easier than ever.  In the last 10 days the Treasury department came out with a new program with recomendations for short sales that can make them even more beneficial and less painful for homeowners, real estate agents and buyers.

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Andy Morris is an Ohio real estate broker with an expertise in selling homes on a short sale. If your Ohio home is heading towards foreclosure or you owe more than your property is worth, please call Andy at 888-4-STOP-IT to see if you qualify for a short sale with your lender.

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