Phoenix, Ariz. (PRWEB) December 5, 2005
For many Americans the Dream of Home Ownership has become a Nightmare.
Record household debt, rising interest rates, stagnant wages, and exorbitant increases in gasoline and heating fuel, are combining to make it impossible for them to continue paying their mortgages.
The problems on the other side of the ledger are the small equity the average home owner has in his property. The end of runaway home appreciation and the buildup in unsold houses in slowing markets across the country makes it tougher to unload their homes that have become a burden.
The National Association of Realtors estimates that their average home listing sells for 9% less than the original asking price. However, that is for someone selling their property who is not under duress. Someone desperate to stop the mortgage meter would have to discount another 10% or so to ensure a quick sale.
Now add the traditional seller’s on-going costs of mortgage payments, repairs, maintenance, etc. while looking for a buyer and then waiting as the buyer is qualified for a loan. Add in the closing costs and 20-25% of the value of his property can be chewed up in the sale process, not even counting the realtors’ commission!
These costs will not only wipe out the 25% equity the average home owner has in his property, they will often not leave enough money to pay off the mortgage(s). This means the owner will have to come up with cash to close the sale. For the many who do not have this cash, selling is not an option.
Unable to sell, many desperate owners will elect to “send the keys back to the bank,” totally unaware of the triple jeopardy they are exposing themselves to.
When the bank forecloses and sells the property at auction; most likely at a big discount, the sale proceeds will probably not cover the bank’s loan and total fee costs.
This will leave the hapless, former homeowner vulnerable to a “deficiency judgment.” This will allow the bank to come after him for the money to cover the spread between what the house sold for and their total costs.
If the bank cannot recover the deficiency, they write it off as a tax loss and the homeowner is then liable for income taxes on that amount. He now has a foreclosure, deficiency judgment and potentially an IRS collection on his credit report.
You can see the choices facing the desperate homeowner are Hobson’s choices.
ZIG has the answer. It is their, We Take Over Your Payments Program! On qualifying property, they immediately take possession of the unwanted house and its payments, lifting it off the owner’s back with none of the delays and costs associated with a traditional sale.
Their proprietary business model allows them to eventually dispose of the property at a profit.
ZIG is a group of experienced real estate investors. Their assistance is available immediately to desperate owners of well located, move in condition, 1-4 unit properties anywhere in Arizona. For more information visit: http://www.WeTakeOverYourPayments.Com.