Home prices have dropped as much as 50% in some areas of Macomb County Michigan and Oakland County Michigan!
It is more and more common for an Oakland County MI homeowner to find themselves in a situation where they are no longer able to make their mortgage payments, due to a variable interest rate that has changed, divorce, illness, job loss or a variety of other reasons.
Metro Detroit homeowners keep asking the Ben Lang Properties Team what they can do in order to get from out under their large mortgage debts. There are many homeowners in the Oakland County MI and Macomb County MI area that know there are strategies available to lower monthly mortgage payments.
What options are available to Oakland County homeowners who are so far underwater that refinancing is not an option?
Ben Lang is an Oakland County Short Sale Expert who has earned multiple Short Sale and foreclosure designations in addition to being a Certified Distressed Property Expert. Ben Lang Properties is a team of real estate professionals who specialize in working with mortgage companies to provide pre-foreclosure solutions to Oakland County homeowners who are in this very situation.
What this means to Metro Detroit distressed homeowners is that Ben Lang can help! One of the solutions that is available to Oakland County and Macomb County distressed homeowners who want to avoid a foreclosure is to pursue a short sale transaction.
There is a big difference between a Short Sale and a foreclosure on your record!
By employing a Certified Distressed Property Expert at Ben Lang Properties, Oakland County distressed homeowners can rest assured knowing that our staff is committed to helping homeowners who face difficult situations, taking them from uncertainty to resolution.
What is a Short Sale?
A Short Sale is a real estate transaction in which a mortgage lender will approve the sale of a Metro Detroit property for less than what the homeowner owes. The bank may approve a Short Sale for numerous reasons, but a Short Sale will help a mortgage lender avoid paying fees associated with initiating and pursuing a foreclosure.
A Short Sale is NOT like a foreclosure transaction. A foreclosure is a real estate transaction in which a homeowner's lender actually takes title of the Oakland County home through a lengthy legal process and then sells the Oakland County home for considerable discounted prices.
A Short Sale is the #1 alternative to a foreclosure and a Short Sale is a much shorter road to recovery than a foreclosure. For a complete list of the benefits of pursuing a Short Sale as opposed to letting your Oakland County home go into foreclosure, see our list of Short Sale Specifics.
Does a Short Sale sound like an option for you?
It is important for Metro Detroit distressed homeowners to know that just because you are "underwater" does NOT mean that you are a candidate for a Short Sale transaction. The first step to a short sale is to hire a qualified Certified Distressed Property Expert and a real estate attorney who specialize in short sales.
Short Sales have began to increase in the last few years, so Metro Detroit homeowners may have some difficulty finding Realtors who have closed a lot of Short Sales. You want to work with a Short Sale Realtor who demonstrates a thorough working knowledge of the Short Sale process and who won't try to pressure you to do something that isn't in your best interest.
If you are considering pursuing a Short Sale, you MUST understand that a Short Sale transaction is not a simple real estate transaction. In addition to the time and effort it takes for a Short Sale Realtor to obtain approval on a short sale, a distressed homeowner will have to work just as hard. As yourself some of these simple questions below:
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Are you current with your homeowners’ association fees?
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Will the property be listed for an adequate amount of time?
If you answered 'yes' to all or most of these questions, you may be a candidate for a Short Sale. The best option is to contact a Certified Distressed Property Expert who can assist you with any and all of your Short Sale questions.
Why pursuing a Short Sale is a better option than a foreclosure?
When it comes to a Metro Detroit Short Seller's future ability to become a homeowner again and their credit, it is important to understand the realities and consequences of foreclosures and short sales.
A homeowner who loses an Oakland County home to foreclosure is INELIGIBLE for a Fannie Mae backed mortgage for a period of 5 years, while an Oakland County homeowner who successfully negotiates and closes a Short Sale transaction will be eligible for a Fannie Mae backed mortgage after only 2 years.
Did you know that many employers are now requiring credit checks for all job applicants? A foreclosure is one of the most detrimental credit items a job applicant can have and in most cases will challenge employment opportunities. A Short Sale is not reported on a credit report and is therefore not a challenge to future employment.
Everyone has heard different stories about how a foreclosure will affect a credit score. The truth is that after going through a foreclosure, a credit score may be lowered anywhere from 250 to more than 300 points and foreclosures will typically affect a credit score for over 3 years. In contrast, when you complete a Short Sale only late payments on a mortgage will show. Remaining current on mortgage payments during the Short Sale process can lower a credit score as little as 50 points. The effect of a Short Sale on a credit score can be as brief as 12 to 18 months.
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