How Much Do You Know About Short Sales?
George Russo explains the difference between foreclosure and short sales.
“Our community has been impacted by the mortgage meltdown, where many of you have gone into foreclosure or may be thinking of doing a short sales.
When a client comes to my office and they’re having difficulty paying their mortgage, if we take a step back we can see that if you purchased your home anytime between 2005 and 2009 you probably paid a premium for your home. Mortgage rates were very low, and people were taking out large mortgages on their homes. Today we find that the value of those homes has gone down, yet your mortgage has stayed the same. So now your mortgage is oftentimes more than the value of your home.
You have a shortage between the valuation of your home and the mortgage that you have had placed on that home by the bank. If you have difficulty paying your mortgage and you want to attempt to sell your home, now the home is not worth as much as it once was on the market.”
The video continues in Real Estate Short Sales – Part 2.