Selling Over Financed (Under Water) Home Fast Just Got Easier With Program Announced By Dunedin Real Estate Firm

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Selling a House fast, even when the mortgage debt is bigger than the value of the home is the kind of problem which sometimes needs to be attacked with a new idea and creative thinking. One solution is to take what you have to get what you need to get what you want. But let's take that one step at a time.

You can now sell your house fast, even if you owe more than the house is worth and walk away with cash, under a program announced yesterday by a Dunedin, Florida real estate brokerage firm.

    “Actually there are at least three totally different plans,” said George Beardsley, President and Broker of Advanced Realty Team, Dunedin, FL.

     “And, of course, you have to point out all houses under water will not be eligible, he said. "It may look like magic, but it is simply looking at resources with a desire to solve problems."

     “However, many houses will qualify even if the owners have had no luck in selling before.”

                                             Some Say It Can’t Be Done

     Beardsley gave as an example a home bought for $100,000 early in 2007 that would be worth $50,000 today and if it had been purchased with a 7 per cent mortgage in early 2007 the balance of the money still owed would be about $93,000 today.

     “An awful lot of real estate professionals are going to tell you that you have to short sale the house or just walk away if you really have to sell today,” he said.

     (A short sale is an agreement reached with the bank or mortgage company allowing the sale at a price which will not pay off the mortgage. The bank takes a loss and may agree not to try to make up the loss by pursuing legal action against the seller.)

                     Disaster or “Home Sweet Home”?

    “The reason this plan can work in today’s market is because one person’s disaster is another person’s “Home Sweet Home.” He said.

    Beardsley explained the seller still has a nice home which is only costing him about $665 a month before taxes and insurance and that amount is probably less than the house would rent for today.

    “The interest rate on the mortgage is higher than the rates you hear advertised today and the house is worth less than the amount owed, which makes a traditional sale impossible,” he said.

    “But for a potential home buyer with even a small ding on his credit, who is looking for a home of his own, this is a great opportunity,” he said.

                                                         Affordability Is the Key.

    A home buyer who lost his home three years ago and has a foreclosure on his credit and who is making a good income that allows for $700 to $800 for housing cost may find this attractive,” he said.

    In five years the mortgage will be down to $85,000 and the value of the home could easily by $65,000 and in ten years the mortgage will be down to $73,000 and it hard to believe the house will not be worth more than that, he said.

    “Of course no one knows what home prices will be, but for the renter/buyer it is about the same expense as renting with the opportunity to own over time, if they so choose,” he said.

    “And there are a lot of other issues to be considered and for a non professional to do something like this on their own, they should definitely secure the services of a board certified real estate attorney,” Beardsley said.

    “One of the big issues, and the reason why it works, is the buyer is taking over the obligation to pay the mortgage but the seller is still responsible for the payments,” he said.

                                             Great Deal, Or Big Risk?

     (This is called buying “subject to” the existing mortgage. It is a great deal for someone who cannot get a mortgage at today’s rates but is making sufficient income to afford the home. And it is a risk for the seller who is depending on someone else to make his payments and maintain his credit, but in some occasions it will make sense.

        Sometimes we buy and put a lease option renter in the house and sometimes we make the arrangements between a seller and a lease option buyer.

    “Lots of ways this can be done. And we offer a free consultation for anyone looking to “sell” their over financed home in the current market,” Beardsley said.

    “We also a more aggressive program which allows the buyer to receive cash for the sale of his home that is over leveraged and has a mortgage that does not offer an attractive monthly payment, He said.

        Details of the other plans will be announced soon, he said.

     (Advanced Realty Team was founded by two former stock brokers and specializes in creative real estate and the principals have been buying house and providing affordable rent and rent to own housing for two decades)

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