Distressed Home OwnerUpside-Down HouseRelocation AllowanceDignified SaleNew Beginnings
WOODLAND HILLS, CA, February 20, 2013 /24-7PressRelease/
-- Bandele Oguntomilade of Bogun Realty and Luxury Homes is pleased to announce the top 5 reasons why California home-owners still short sell their homes today even in the face of successful modifications and rising home prices.
For California home owners who owe more on their home than the home is currently worth, a short sale is an effective procedure to sell the home and have the deficiency (the remaining debt) wiped-out. Below are the top 5 reasons why Californians still short sell their homes:
(1) To Get Rid of an Under-Water House and Get Rid of a Crippling Mortgage Debt: Even if a homeowner has multiple mortgages on their home, a successful short sale in California allows the home owner to sell their home and the remaining mortgage debt is wiped out. California law currently states that as long as the mortgage lender agrees to the short sale, the remaining mortgage loan balance is wiped out and uncollectable. In contrast, a foreclosure may still leave the home owner personally liable for a large portion of the mortgage debt on a recourse loan even after the foreclosure is completed. Because a successful California short sale gets rid of the entire mortgage debt, it is always a prudent option to explore before letting the home go to foreclosure.
(2) Relocation Allowance could be Substantial: Many mortgage servicers now offer significant financial incentives in the form of Relocation Assistance to home owners who opt to short sell their homes. Typical relocation assistance offered by mortgage servicers to home owners can range from $2500 to $45,000. Mortgage servicers are able to offer these substantial relocation allowances to home owners because mortgage servicers net 25% less proceeds in a foreclosure than in a short sale.
(3) To Avoid Property Tax and Routine Maintenance Expenses: Home owners who short sell their under-water homes, can avoid paying property tax and routine maintenance expenses, such as gardener, utilities, repairs, as soon as the home is sold.
(4) To Enjoy a Dignified Exit instead of an Oppressive Foreclosure: Unlike a foreclosure, a short sale allows the home owner to hire a real estate professional of their choice who lists and markets the home for sale and negotiates the short sale with the mortgage servicer. The home owner controls the transaction and the public information disseminated about the sale of the home because the real estate professional works for the home owner. In a short sale, the home owner can also choose to have the home marketed and shown at their convenience. In contrast, a foreclosure can be very traumatic and oppressive. In a foreclosure, the home owner's default is publicly recorded via a Notice of Default and the foreclosure sale is also publicized via a Notice of Sale. A very public notice is posted on the home owner's front door stating that they have defaulted on their mortgage and this notice can be read by the neighbors right before the home is auctioned off publicly. When going through financial distress, it is definitely beneficial to explore a private and dignified short sale before letting the house go to public foreclosure.
(5) To Enjoy Shorter Credit Repair and To Buy the Next Home Faster: When a home owner sells their home in a short sale, it usually takes an average of 2 years to rehabilitate their credit and be in a position to get a new mortgage loan to buy their next home. However, if the home is foreclosed, it could take anywhere from 4 to 7 years before the foreclosed home owner can get a new mortgage to buy their next home. The impact of a short sale on the home owner's credit report rating is much less devastating than a foreclosure. The missed payments leading up to a short sale may cost the home owner's about 50 points in their credit rating; while a foreclosure could cost over 300 points and the foreclosure will remain on the home owner's credit report for 7 or more years.
In sum, California home owner's with upside-down homes, and who are experiencing some financial distress and need relief from the mortgage debt, should always consider short selling their homes to get rid of the mortgage debt and deficiency, maybe even score some Relocation Assistance from $2500 to $45,000, and enjoy the "New Beginning" that they so rightly deserve.
If you are interested in short selling your home, contact Bandele Oguntomilade at 818-825-6996 or Apply Here
. Bandele Oguntomilade is a Short Sale and Foreclosure Resource Specialist, a Certified Residential Specialist and the Broker and Owner of Bogun Realty and Luxury Homes in Woodland Hills, California. You may visit us at http://www.BogunRealtyAndLuxuryHomes.com
About Bogun Realty and Luxury Homes:
Bogun Realty and Luxury Homes is a full-service real estate brokerage firm that helps buyers, sellers, and investors purchase and sell properties and homes at all levels of spending in southern California. Specializing in Calabasas Real Estate
, Woodland Hills Real Estate
, Encino Real Estate
, Sherman Oaks Real Estate
, Studio City Real Estate
Bogun Realty and Luxury Homes
Contact: Bandele Oguntomilade
Phone: (818) 825-6996
If you are interested in short selling your home, contact Bandele Oguntomilade at 818-825-6996 or Apply Here. Bandele Oguntomilade is a Short Sale and Foreclosure Resource Specialist, a Certified Residential Specialist and the Broker and Owner of Bogun Realty and Luxury Homes in Woodland Hills, California. You may visit us at http://www.BogunRealtyAndLuxuryHomes.com
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