Williamsburg

Discover Why Short Sales Are Becoming Popular Choice To Stop Foreclosure

Homeowners who are facing foreclosure will use the short sale method to stop it from occurring and ruining their credit entirely. This especially true of homeowners where interest rates on their loans skyrocket, either doubling and/or tripling their house payment with them unable to afford the home any longer. Real estate investors also like short sales because of the deep discounts they receive from them.

Sellers will negotiate a short sale with their lender, who may require the seller to explain why they are unable to make the normal monthly payments. Not too long ago, home foreclosures rose because the 2004-2005 adjustable rate mortgages that were written were resetting. The problem with short sales is that they are complicated and are likely to stay complicated with lenders having to deal with them. Those homeowners who used the equity in their home while the real estate prices were inflated are now feeling the pain.

How Lenders Work In Short Sales

Lenders understand that home repossession is costly; after all, they have to spend tens of thousands of dollars to deal with the home including the maintenance, refurbishing, marketing and selling the home. The only issue is that there are no guarantees that they’ll be able to recoup their losses, not like they can from a short sale.

Lenders want physical proof that the homeowner is unable to pay their monthly bills and actually needs relief from the home payment. Homeowners and lenders see short sales as the last resort before the foreclosure or bankruptcy processes.

While lenders don’t want to hold onto problem properties, they certainly don’t want to lose the home for very low prices.

How Sellers See Short Sales

What seller wouldn’t want to get the most out of their house? They certainly don’t desire to sell their home for a lot less than the home’s market value or less than what they initially purchased it for. This situation could turn dire if an unforeseen event takes place that generates a financial hardship for the homeowner. For instance, they lost a job, are diagnosed with long-term illness or have a sudden rise in living expenses. These are just three of the reasons that homeowners see themselves in a cash-strapped situation.

Some sellers are lucky enough to convince the lender to do a short sale as the best way to handle the problem but there is a downside they must understand. That is… some lenders may claim the forgiven debt as a loss on the company’s taxes and give the seller a 1099 form for that amount.

A Look At Foreclosures

Remember that in 2004-2005, there were millions of loans written for adjustable rate mortgages, many of them resetting in 2007,2008 & 2009. As a direct result, short sales also rose. Lenders have differing views on how to handle foreclosures and short sales workouts.

More and more short sales are taking place and anybody who has completed short sales understands, it’s rough ride for the sellers who are already feeling topsy turvy. However, if you understand what short sales are all about, you can opt to go this route to avoid foreclosure.

About The Author:

EJ Harris is one Managing Partners at Community HomeSolver, which is a home buying company for “Sell House”.  Harris has many interesting articles written on this very topic. People expect to find all kinds of interesting data when they are trying to find out how to sell their home or sell their house. Yet, it’s not always what they are searching for even when they type in “How To Sell Your Home”, “Privately Sell Your Home” or “Sell Homes Online”.  You may not get everything you want from this article but you’ll be surprised by what you do learn about “Sell House”, “Sale Home” even if you made a mistake in spelling while searching for a particular topic such as “hpw to sale your hom fast” or “seling yur home quicly”.

Community HomeSolvers buy homes and houses in and around areas of Williamsburg, VA. We Buy Houses in Newport News, Hampton, Norfolk, Virginia Beach, Portsmouth and Chesapeake! We are also now seeking homes in and around Richmond, Henrico, Chester, Chesterfield,  Highland Springs, Colonial Heights

Williamsburg

What Does It Mean To Sell My House For Cash?

I’m sure you’ve seen the advertisements “We Buy Houses For CASH” but what does it all mean? There are many ways selling your house for cash can benefit you.

 Avoid Those Annoying Slow Realtors- When you sell your house for cash you sell it directly to the buyer (who can close in 7 days).  Your other option is using a Real Estate Agent.  Real Estate Agents love wasting your precious time with extremely long contracts, expensive realtor fees, and brining in annoying potential “buyers” into your house whenever they feel like it.  Not to mention they put your home on the MLS with many other properties and let it sit there for six months or more while you sit on a house you don’t even want. If you want to avoid pesky Realtors, then selling your home hassle free for cash is the way to go.

 No More Un-Wanted Fees- In most cases when you contact a “We Buy Houses” homebuyer and decide to sell your Hampton house with cash, the buyer will purchase your house in as-is condition and take care of any taxes or unwanted fees. By selling your Hampton house with cash, your problems will disappear with and instant impact!

 Quick, Easy and Hassle Free- When you sell your Newport News house for cash there are no banks involved. The buyer comes to the closing table with cash and you walk away with a check (yes it’s as simple as that). The only work you will be doing is showing your house to the investor, signing a contract and meeting at the closing table. It is literally that easy.

 Visit our website Community HomeSolvers for more information on how you can sell your Williamsburg house for cash, hassle free!

We buy houses in all of the Virginia Peninsula cities of Hampton, Newport News, Poquoson, York County- Yorktown, Williamsburg, and James City County and the Hampton Roads / Tidewater cities of Suffolk, Norfolk, Virginia Beach, Chesapeake, Portsmouth, Smithfield, Isle of Wight and Richmond.  If you don’t see your area listed, call us. We may still be able to help you. We are constantly expanding, and we can also contact a company in our network that will be happy to assist you.