When Will My House Sell? Void Foreclosure Short Sale Michigan Credit Ptotection

When Will My House Be Worth What I Owe?

When Will My House Be Worth What I Owe?

By Clint Maki, Real Estate Broker, GRI

People reading this or watching the YouTube video ( Youtube/RealtorClint/When Will My House sell Foreclosure short sale ) almost always have one thing in common. They are almost ALL struggling with the one question: When will Real Estate prices come back? I am not always glad to answer that question because people ask that one for their own purposes. Usually, they ask because they want to know when their house or commercial property will be worth what they paid for it or worse yet, what they owe on it after the refinanced ad drew off their equity to refinance other debt.

Here is how I answer that question:

A lot of people went out and refinanced their car and credit card debts in the period of 2001 through 2007. Plenty of people bought homes during that peak of the market period using 100% financing and other leveraged forms of purchase. Then, in 2008 we saw the market climax and the bubble burst in Real Estate. The market crashed and people lost their values in the amount of 30% - 50%, depending upon what they bought and where they were located.

It happened to YOU too. It wasnt something that affected everyone but YOU. I did not happen to YOU and not everyone else! EVERYONE went upside down at the same time.

So, the statement I hear most often is: I dont want to lose money on my house.

The BRUTAL reality is that YOU ALREADY LOST YOUR EQUITY. ITS GONE. It happened to EVERYONE at the same time.

Trying to sell your home for more than market value in order to get out from under the debt is probably a waste of time and effort because of the fact that most buyers know we are in a deep recession. I dont want to be negative, but it is vital that people really assess their position.

Values dropped like rock and they will grow like a flower. Find out what your home will SELL for, not what you WISH you could get to pay off your debt or what it would be worth if. Be HONEST with yourself and subtract from that number your total closing costs and then you will have your real value.

Add to that number a 3% factor for appreciation per year (or whatever the CURRENT number is in your locale) until your value reaches what you owe. ( See my YouTube video for a graphic explanation )

Most of the time if you MUST sell your home, a short sale makes sense. That is a process where your lender(s) agree to accept an amount SHORT of what you owe. It may be your only way out of your predicament. The risk to your credit rating is MUCH less than a foreclosure and the upside is that you can buy another home fairly soon. When you do buy another home you can be fairly sure you bought at the BOTTOM of the market and you can gain equity again.

The least acceptable response is to surrender your home to your lender. The long term consequences of this are pretty financially devastating. See my YouTube Channel: RealtorClint and watch the Video titled :Short sale Expert Avoid foreclosure. It gives the Do and Dont of foreclosures.

My goal in writing this article is to help you out of a bind if you are in one. Please feel free to contact me any time no matter where you are from. I can help.

Clint Maki is a Realtor in the state of Michigan and specializes in helping people avoid foreclosure, short sales REO properties and credit rating protection strategies.

Clint Maki contact information:

PHONE: 616-837-7630

by: Clint Maki

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