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Troy Stortz - The Short Sale Option by David Knox

David Knox, President of David Knox Productions, Inc., discusses a very serious situation for the San Diego Downtown homeowner, the financially distressed property, where the mortgage exceeds the value of the home and the owner is behind on the payments.

When a San Diego Downtown home buyer first purchases a home, the price paid is equal to the value of the home at that time. A percentage of savings are paid as equity then the balance is covered by a mortgage. Since then, negative factors around the real estate industry may have driven the value of the home that first consumes the home's equity, then eats into the mortgage, leaving a balance greater than the home is worth. At this point, there are no good options but only less painful ones, though most homeowners lose their home through the most painful way, through foreclosure.

Knox lists 4 additional options to consider: Sell, Stay, Rent, and Short Sale.

Selling at the market price would mean accepting the loss and trying to cover it with cash savings, life insurance or liquidating assets. This way would preserve credit rating and let the seller move on with life.

Staying at the home and waiting for the market to improve is an option to consider if financial arrangements can be made to meet the monthly costs of keeping the home. However, Knox discusses the time value of money, and what it means to sell now, or waiting for a better time.

If the San Diego Downtown home is within the rentable range of homes in its area, computing for the income gained for rent may lead to a viable solution. There are several challenges, though, in renting your home, such as finding renters, managing the property, maintaining utilities, and dealing with wear and tear, that, in most cases, the income and effort would not be worth the cost.

Knox then explains short-sales and how much it can benefit the owner versus foreclosure, such as the ability to preserve credit rating. He also lists the qualifications for being eligible for a short-sale, including acceptable hardship, monthly shortfall, and insolvency. A step by step process is then outlined for those interested in going through a short-sale to avoid foreclosure.

The actual short-sale package takes up to almost 150 pages of complete and accurate information that's impossible to include in the video, so professional help is necessary in order to finish the process. Knox closes by saying, "Before you assume your situation is hopeless, contact your real estate agent for a consultation. See if you're eligible for a short-sale and let them walk you through the process."

For financially distressed Downtown San Diego home owners, contact Neuman & Neuman at 1-800-221-2210 for more helpful information.

For further information on any Downtown San Diego Condos contact:

Gregg Neuman

Gregg@sellSanDiego.com

1-800-221-2210

www.SellSanDiego.com

Traditionally, San Diego condos are upscale and belonged to the higher value properties around. Lately after the recent recession, we have gotten word that the mortgage interest rate had been currently nearing its 50-year lows. For many homeowners, refinancing at the moment looks very appealing indeed. As per Freddie Mac weekly rate survey, the 30-year fixed mortgage rate averaged 4.22 %. There is however, one hitch - refinancing is not always possible for home owners on account of low equity.

Equity

Across the country, properties had been saddled with low equity (negative equity) in their homes. Experts rule that while refinancing is possible (as low as 3% to 6% home equity) it could be worthless after taking mortgage insurance.) If an owner does not have home equity, he can still qualify using the government refinancing program HARP (Home Affordable Refinance Programs.) Also, lender-banks would want to see some consistent income. Owners of San Diego condos would also need to have that consistent money source.

Another hurdle

On the way, you may have to have a high score, the best being at least 740. (The qualifying number is at least 740.) Anyone, however, can still qualify for a loan with a score lower than the listed 740. It had been known that lenders don't adjust the rate up or down based on credit score. The magic number is in the mid-600 to qualify for a loan.

Refinancing

Is there a need to have a refinance? For some, refinancing is unnecessary. With a slightly higher interest rate for paying nothing at closing, the rate would still be lower than the current one.

One can, if he wants it, shorten the term of a 30-year loan into a 10-year mortgage. The alternative is to take the monthly payment savings to pay off the 30-year version of the mortgage. To those who are chasing lower rates, and who may have done refinancing several times, the outcome is not that simple. An expert had declared to his clients that refinancing is sensible only if they will not have to pay the closing costs while the rates are reduced at the same time.

Lowering your rates

As alternative to lowered mortgage rates, owners like you may have to do some research on your property to check how much it is worth. You can also check your Fico credit score. Finally, you can call your own mortgage holder to see if they have a better deal for you with appraisal and minus the tons of paper work. Owners of San Diego condos can do this, too. 

For more information about Downtown San Diego Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

Find More San Diego Real Estate Here!

There comes a time in one's life when he should make some real estate decision. For San Diego dwellers, one of such important decisions is whether to buy or rent your dream downtown San Diego condos. As the prices of condominium units have dropped along with their interest rates, the cost of rental properties have otherwise increased. This may be an indication for tenants to consider buying property and invest their hard earned money.

This was not the same scenario in 2006 where renting proved to be more convenient as the prices of San Diego condos were extremely high. Today the housing crash has devastated one state after the other reducing the value of homes and consequently their prices. However, the cost for rental property remains to be high in San Diego thus buying your own home is the most lucrative decision to make. It is advantageous monetarily because you will get profit from a property with low value that you have bought for a low price.

As investors, you may still be considering your options on this important decision that you will have to make sooner or later. To help you come up to such insightful decision, you may conduct analysis exercise that is not that complicated. You can begin by coming up with the total cost of your rented home and use it as a base of comparison to all San Diego condos purchase options.  Make sure that the total amount is inclusive of rent as well as other related costs such as tenants insurance, maintenance fees and association dues. Doing this exercise may help you with your purchase decision, which is actually an opportunity that does not come every so often.

Once you have made your mind to make that purchase, it is important to make your research on the cost of buying comparable housing. With your price range in mind, look into listings that are apt for you and your financial capacity. Research on the most saleable houses recently, so you know what direction to take.

Most importantly, employ the help of a professional realtor to guide you in making this important purchase. Seeking professional help will give some information on the cost of insurance, utilities and real estate taxes. These are people that have been around and have been doing these transactions for so long that their knowledge and wisdom will be advantageous for you. Your next stop will be at local bank or mortgage broker in order to make sure of the cost and availability of the mortgage for your home purchase. 

For more information about Downtown San Diego Condos contact:

Gregg Neuman

1-800-221-2210

Contact the Neuman and Neuman Team

www.SellSanDiego.com

Find More San Diego Real Estate Here!