For Sellers

To Sell or Not to Sell . . .

is That Your Question?

Selling a home in this market is hard enough. Competing in a neighborhood flooded with Short Sales and Foreclosure homes that have been heavily discounted is nearly impossible. Homeowners that have to sell right now are being forced to price their properties as aggressively as the lenders that they are competing against

We realize times are tough for sellers right now. Listing your home for sale today probably won’t get you what you want. The best strategy would be to stay put and wait out this housing crisis. But, if you really have to sell now (because of a job relocation or other reasons), there are some things you need to know to expedite the process. Especially if you owe more than what your property is worth in today’s market.

Did you know. . . You don’t have to be behind on your mortgage in order to negotiate a Short Sale.

Today’s lenders are looking for verifiable hardships, monthly cash flow shortfall or pending shortfall and insolvency. If you meet any of these requirements and you see yourself heading in the direction where you will not be able to pay your mortgage, be proactive. Remember, most lenders would rather sell short than foreclose — under any circumstance.

But if you can still make your monthly mortgage payments now and into the foreseeable future, the best strategy would be to stay put and wait out this housing crisis. However, your current tax assessment might not be keeping up with the declining value of your property. A little research might reveal that your tax assessor is overvaluing your home and you could be paying too much in property taxes. You could be saving hundreds, even thousands on your annual property taxes which can significantly lower your home mortgage making it easier to survive this market.

Know that Foreclosure has become a National epidemic. Don’t be embarrassed! Foreclosures happen to the hardest working people . . . good people just like you! The good news is that Lenders don’t want to foreclose and take your house. They will go out of their way to work with you to help you get back on track. Just remember these golden rules!

Rule #1: Contact your lender as soon as you know your payments will be late.
Rule #2: Don’t ignore the lender’s letters or calls. Ignoring a problem won’t make it go away.
Rule #3: Don’t assume your situation is hopeless and do nothing.

Home prices have dropped in the Inland Empire, a growing number of homeowners are finding their homes worth much less than the mortgage amount they owe to their lenders. You may find yourself in this situation because:

  • You purchased your home at the peak of the local market, just before prices began to drop;
  • You took out an interest-only or pick-a-payment option loan and your monthly payments did not reduce the principle owed – as your home’s value dropped, the amount you owed on it grew;
  • You tapped into your home’s equity with a second mortgage or home equity line of credit (HELOC) that now exceeds your home’s value.
You Have Options – We Can Help


The very first thing you should do is check to see if you qualify for the Home Affordable Modification Program (HAMP). Some borrowers can negotiate workouts or Loan Modifications with their lenders or qualify for the government’s Making Home Affordable Program.

Another option would be Renting Your Home Out so someone else makes your mortgage payment. This will not only reduce your stress, it will also give you a good investment for the future. Just be sure you are able to rent out the property to cover most or all of the mortgage payment, taxes and insurance. Under this circumstance, renting is a good strategy for holding on to your home.

If you find yourself jobless, caught by escalating mortgage payments, mounting household/ medical expenses and you can no longer afford to pay your mortgage, the concept of Short Sales being a viable option has gained new traction as an exit strategy.  A lender-approved short sale may be your best choice.

Bottom line:

If you’re struggling to make your monthly mortgage payment or you’ve missed a payment, call to your lender. Stay on top of your situation. Know your rights and be honest about your situation.