“Hi Gary. When I refinanced my condo last October, I took out a large loan to pay off some debts. Now I just got laid off and cant pay my mortgage. Whats worse is I cant sell because I owe $495,000 and its only worth $475,000. Im stuck and I dont know what to do. Can you help me?”
***ANSWER:
You may be a perfect candidate for something called a short sale, short pay, or short pay-off.
A short sale occurs when someone owes too much to sell and pay the normal closing costs, broker fees, and loan balance, and the lender agrees to accept less than the full balance on the mortgage.
Lenders will often agree to a short sale if certain conditions are met. Some of the conditions are:
A) inability to pay the mortgage
B) a valid hardship or negative event that caused that inability
C) insufficient cash to pay the shortfall
D) sales price at or close to market value
A short sale is a complex process and should NOT be attempted by an inexperienced agent. In the down market of the early/mid 1990s, I obtained successful short sale for about 200 clients.
This is VERY general information. If you or anyone you know is unable to sell due to a too-high loan balance, call me at (858)457-KENT for a free consultation. In a few minutes Ill explain the pros and cons and tell you with 90% accuracy if you can get approved.
