Real Estate Crash…No Problem for Our Clients

Let’s face it, over the last 30 years the government has created every possible program to promote homeownership in America.  The most unsophisticated buyers have been able to obtain cheap mortgages over the years and leveraged themselves into purchases of ridiculously priced mansions. Now, as the bubble deflates these poor homeowners dreams have become their worst nightmare.  But, it does not have to be this way.

Yes, you made a mistake and bought a property at the top of the market in 2006-2007.  But, you have many options to consider from “walking away,” conducting a short sale, or just allowing your lender to go through foreclosure on your property.  Depending on your location and your specific situation, all the above are viable paths to freeing yourself of a devaluing asset and the debt associated with it.

In most instances a short sale will yield the homeowner and lender the most positive end result.  In this case, the borrower owes their lender more than the value of the property and has fallen in arrears on their payments.  At this point the lender has a huge problem now; a nonperforming note on their balance sheet and huge expenses to recover on the value of their collateral.  A scenario where the lender accepts a sale for the current market value of the property while forgiving you of any shortfall liability on the loan is a huge win/win (potential tax liabilities with this strategy). Why people continue living in their massively underwater homes while making huge monthly payments to their lender is astonishing.  Perhaps they do not know the opportunities that exist with short sales.

Our clients made huge mistakes, but good solutions do exist.  We help our clients through the short sale process so that they can walk away from their homes without being shackled to the existing debt.  If you are a homeowner underwater, be proactive and find the easy solution through a short sale.