The Stuck Generation
A listing appointment is when a real estate agent meets a homeowner to evaluate how much their home would likely sell for in today’s real estate market. The Realtor develops a marketing strategy which shows how they will market the home in order to sell at the highest possible price in the shortest time frame.
The last several homeowners I have met cannot pay off their loans and closing costs if they sell their home. The most common reasons:
1) Bought high and the market has decreased
2) Refinanced, took equity out of their home and the market has decreased
Recently, I have also met with other owners who would love to sell their home and move to another. But unfortunately after selling, they don’t have enough equity for a down payment. They are stuck.
According to a recent article in the LA Times: Nearly a third of California homeowners with mortgages — 2.1 million families — owe more than their homes are worth. And each of those borrowers is underwater by an average of about $93,000.
But with life there are always options, even when we don’t like them. If you fall into the above category here are your options:
1) Stay put, do nothing
2) Attempt to get your loan modified
3) Rent your present home and then rent a home which is more desirable (solving your desire/need to move)
4) If you can’t fight the inevitable, let the bank foreclose, it’s not the end of the world
5) Short sell your home
6) In lieu of a short sale, you can sell your home and bring money to escrow for closing (making up the $$ difference)
Related Posts: Top four foreclosure questions and answers
What is a short sale
Foreclosure alternatives
Help for some underwater homeowners
Everything you wanted to know about short sales but were afraid to ask
The last several homeowners I have met cannot pay off their loans and closing costs if they sell their home. The most common reasons:
1) Bought high and the market has decreased
2) Refinanced, took equity out of their home and the market has decreased
Recently, I have also met with other owners who would love to sell their home and move to another. But unfortunately after selling, they don’t have enough equity for a down payment. They are stuck.
According to a recent article in the LA Times: Nearly a third of California homeowners with mortgages — 2.1 million families — owe more than their homes are worth. And each of those borrowers is underwater by an average of about $93,000.
But with life there are always options, even when we don’t like them. If you fall into the above category here are your options:
1) Stay put, do nothing
2) Attempt to get your loan modified
3) Rent your present home and then rent a home which is more desirable (solving your desire/need to move)
4) If you can’t fight the inevitable, let the bank foreclose, it’s not the end of the world
5) Short sell your home
6) In lieu of a short sale, you can sell your home and bring money to escrow for closing (making up the $$ difference)
Related Posts: Top four foreclosure questions and answers
What is a short sale
Foreclosure alternatives
Help for some underwater homeowners
Everything you wanted to know about short sales but were afraid to ask
Posted by Phyllis Harb at 8/16/2011 2:51 AM 
Categories: Homeowner's Benefits and Woes, Foreclosures, Short Sale
Tags: homewowners without equity are stuck in their homes
Categories: Homeowner's Benefits and Woes, Foreclosures, Short Sale
Tags: homewowners without equity are stuck in their homes
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