I have a “pre-foreclosure” listing that isn’t selling and the homeowner can’t lower the price since they have no equity. How can a short sale help?
This situation has really become an issue in 2009. As you know, there is a large number of homes on the market and fewer buyers. Add to the mix stagnant to falling home prices over the past couple of years, the popularity of 100% (no money down) mortgages and “option” mortgages with negative amortizations, and you have a situation in which many homeowners simply cannot sell their home. Many agents are telling homeowners that they must lower their asking price in order to entice buyers in this environment; but often times the suggested listing price is BELOW their mortgage balance. The homeowner would actually need to bring cash to the closing in order to sell their home – cash they often don’t have. This situation is multiplied when the home is in foreclosure. When a homeowner receives a foreclosure notice, the first 2 things they typically try are refinance and selling. With falling prices, a homeowner in foreclosure often has no equity to go along with his now damaged credit. This ma
