(PRWEB) November 06, 2012
Due to economic downturn as well as a fall in real estate values, countless homeowners who have invested in North Hills Real Estate have bought premium properties at extreme prices and they are now going through financial adversity. The value of their properties have decreased drastically in relations to the total mortgage due on the property. As a result, many people who have lost their lucrative jobs started to consider selling the property to avoid huge mortgage payments. However, most buyers are not ready to invest a huge amount in to the North Hills homes for sale, given the decrease in the value of the real estate as a whole. The situation worsens when property owners have to face foreclosure. Red Blue Realty, with the help of their reputed North Hills Real Estate Agents, gives valuable insights to North Hills homeowners on avoiding foreclosure as well as loan modification by setting up a short sale.
Keep Credit Score in Mind
The current scenario of North Hills Real Estate homeowners who are underwater on their mortgage warrants the need for short selling the property rather than opting for foreclosure. Homeowners may try a loan modification although statistically speaking, the majority of loan modifications do not work out for homeowners. Aside from having the loan forgiven at the settlement price, one of the most important advantages of short selling a home is that the credit score is not affected as badly as in the foreclosure process. Rather then wasting time with a loan modification and risking foreclosure, speak to a North Hills real estate agent about short selling a property.
Less Time to Buy a New Home
For those people who want to short sell their North Hills properties and settle in a comparatively small city with a rather moderate living cost, it is important that they short sell their homes and get a fresh loan for a house that is little smaller and in a small town after sufficient time has gone by. A foreclosure makes it more difficult for a person to get a fresh loan, due to the bad credit score. If a person goes for a loan modification, it is difficult to get out of the rut of paying for the property, which is far lower in value than the mortgage payment. In most cases, a loan modification provided to the homeowner will not renew the initial loan balance, but rather change things like the loan repayment date, or interest rate.
Avoid Selling Expenses
When a person considers short selling over foreclosure, a homeowner can avoid selling expenses such as title insurance, attorney fees, agent commissions etc. In case of a foreclosure, these expenses may fall on the seller as well in the form of a 1099 from the lender holding the account.
To find the the perfect real estate agent who can help you strategize the best solution, be sure to check out http://www.RedBlueRealty.com or contact Christopher Rosiak at:
Phone Number: 1-(855) 66-RBREALTY or 1-(855) 667-2732