Selling in Daytona Beach for Top Dollar
Even in a Buyers Market!
What should you do if you have no equity, can not sell and you want to salvage your credit while avoiding foreclosure in Daytona Beach.
- DO NOTHING
- PAY ARREARS
- DEED IN LIEU
- BRING MONEY TO THE CLOSING
- REPAYMENT PLAN / LOAN MOD
- SELL WITH A REALTOR
- SELL IT ON YOUR OWN
- SHORT SALE
- LEASE OPTION
Option #1 Do Nothing– Let the property go into foreclosure or continue making payments and have a lower quality of life..
Options #2 Pay Back Payments and Bring the Loan Current– Pay with cash and get the loan caught up and try staying in the property. Not a very good option if you have a negative cash flow situation due to a job loss or a death in the family resulting in the household income being reduced or even cut in half. Debt to Income ratio is greater than 2 to 1.
Option #3 File Bankruptcy– Filing Chapter 7 Bankruptcy will alleviate you from your obligation to repay the loan but the property will still go through foreclosure process for the bank to repossess the property and sell it as an REO. In this scenario it will still appear on your credit and unfortunately they will now have a Bankruptcy and a Foreclosure on your new credit file when it could have been avoided altogether. Your new credit file will start out blemished with missed payments being reported to it each and every month.
Option #4 Deed in Lieu– This is a voluntary foreclosure and will appear on your credit as a voluntary foreclosure. This is a trap set-up by the lender to help them avoid the additional expense of a legal battle in court. The lender gets the property back and it still shows up as a voluntary foreclosure on your credit file. This will continue to affect your credit and in some cases your employ ability for many years to come.
Option #5 Refinance– The FHFA came out with a short refi program in September of 2010 and that program started in October of 2010 and still exists today, however since it’s exception in 4 months there have only been 3 people in the United States that applied for that program who have successfully completed it out of tens of thousands of people who applied. The reason why is because it is a refi program that forces the lender to take a loss.
Option #6 List and Sell– Most often this option will require the seller to bring money to the table at closing because the selling price doesn’t cover all of the expenses such as mortgage, liens, taxes, judgments, seller concessions, closing costs and commissions.
For example if the property is selling for 180k and the first position mortgage is 180k the seller will have to payoff the second including closing costs and commissions for listings it. This often requires the seller to bring an additional 10k to 20k to closing that they don’t have.
Option #7 Loan Mod or Repayment Plan– According to the TARP bailout program over 54% of all of the people who are actually approved for a loan modification through the HAMP / HAFA program end up re-defaulting. This is usually because their debts exceed their income and unfortunately the lenders require that the seller sign a Deed in Lieu prior to qualifying and commit at least 33% of their expendable income towards servicing the monthly payments.
Option #8 Selling with a Realtor– Much like option #6 above this option often requires the seller to bring money to the table in order to close. A large percentage of agent listings go expired because an in- experienced agent suggests a list price that is too high to compete in a competitive market place. In order to secure the listing the agent may suggest a list price that isn’t realistic but give the homeowner hope that they can sell at a price that will cover all of the liens and judgments.
Option #9 Sell It On Your Own– either as a FSBO or as a Short Sale. If successful you will still have your credit bruised but you won’t have a foreclosure on your record, you can avoid a possible deficiency judgment post foreclosure or the need to declare bankruptcy. You may have several missed payments impacting your credit score but if a short sale goes through you won’t have a foreclosure on your record and may re-qualify for a new mortgage in just a few short years. We are experts at helping homeowners navigate the complex world of short sales with proven results.
Option # 10 Selling on a Lease Option – There are many benefits to selling on the Lease Option.
We have buyers who may be credit challenged but have plenty of cash and are looking to buy on terms. By selling via Lease Option we can bring in a buyer who will bring your payments current so that you will not need to bring money to closing, have a short sale, a voluntary foreclosure, bankruptcy or a deed in lieu.
The benefits are many like a tenant who has skin in the game that you know will take care of the property.
The payments are collected by a third party escrow company. We have hired Michael Flowers PA to service the payments each month and make certain that they are made to the mortgage company. Any remaining payments will be disbursed back to you for a monthly cash flow.
At the end of the option period the new buyer will have the option to exercise the option or vacate the property and surrender their option deposit. In which case you can either take back ownership of the property or re-lease it collecting another option deposit.
The end result is:
- Cash now in the form of a Option Deposit
- Monthly payments to service your debt keeping your credit positive
- Monthly cash flow coming in and managed by a local attorney
- Better than full asking price when the market appreciates at some point in the future
- The opportunity to stabilize your finances and have the potential to reclaim the property if the new buyer doesn’t perform.
Selling for Top Dollar in a “Buyers” Market!
- In a “Buyers Market” like the one we are in today, every buyer expects a great deal when paying cash!
- Most buyers who need financing can not get it from the banks who have tightened their lending practices!
- Many buyers who have cash and good paying jobs need time to repair their credit.
ACCORDING TO CORELOGIC REAL ESTATE DATA TRACKING;
- 48% Of All Houses on the market today are in some “State of Foreclosure”.
- 46.1% of all home purchase transactions are made up of distressed properties!
- The volume of serious delinquencies and pre-foreclosure homes overshadows the number of actual foreclosures by 50:1
PROPERTY VALUES WILL NOT GO UP MUCH VERY SOON!
- 5 million properties are in shadow inventory now (bank owned but not yet on the market).
- 90% of them are not on the market according to core logic.
- 1.2 Million foreclosures have happened in 2012 that should have happened in 2011.
- 1.8 Million new foreclosures are expected in 2013.
- 2 Million properties are seriously delinquent but have not filed foreclosure yet.
- Banks are not starting foreclosures until homeowners are 365 days late.
- 11 Million homeowners have negative equity in their homes.- Corelogic
- 16 Million homeowners have less than 10% equity in their homes.- Corelogic
What the media is not telling you is that this is a false bottom and
when all of that inventory hits the market we are heading for another crash.
The Problem Most Property Owners
Have in a Buyers Market!
-$16,150.00=Total Seller Costs!
End Result = $5,150.00 Total that the seller needs to bring into closing to make the transaction work!
Sell Your Problem Property Now For better than Full Asking Price
Get Money Now, Monthly Cash Flow and Lock in your Full Asking Price!
$150,000.00 = Future Sales Price / Full Asking Price
- Buyer Loves the House and is more willing to take care of it because they put 3-5% down.
- Buyer pays down the mortgage over time.
- No Agent Commissions
- Seller has Minimal Closing Costs
- Seller no longer has payments to worry about!
- Seller gets cash to walk with now and monthly positive cash flow!
- Seller maintains their positive credit and begins to create equity over time.
- Seller has little to no maintenance.
Seller gets better than
“Full Asking Price”
In a market that otherwise will not support it.
Regardless of which way the market turns.
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We look forward to assisting you as we have successfully served
so many others in your situation!
If you would like immediate assistance please complete the form below and we will contact you!