Some home owners may run into a situation where the total debt on the home is more than the market can sell your home for. In BC, the easiest solution to this problem is to wait it out. In Vancouver, Burnaby, Surrey, Coquitlam, Port Coquitlam, Delta, Abbotsford, Mission and Chilliwack, real estate is hot! But this solution is not always workable. People that are obligated to sell may need to be more aggressive than a simple “wait it out” strategy.
With job relocation, financial difficulties, divorce, illness or death, anything can happen. If you can’t sell your property without having to borrow more for the closing costs, we have solutions. One option is to keep your mortgage payment but not make the payment. This worst case scenario usually impacts your credit report and is not advised as a viable option.
Banks do not want to foreclose on a home. It costs far too much money and the banks objective is not to proceed with a home foreclosure. You can approach your bank and explain your situation to them. Ask them for a “short sale”. Essentially a short sale is when the bank accepts less then what the home is worth. They will not be excited about this option but they will also not want to repair the home and place it on the market. These deals involve a lot of paper work. Having a qualified team working on your behalf can be a great asset to getting the job done. If you have a realtor, give them a call for moral support during this process.
Make contact with the mortgage broker that approved you for the mortgage and ask for the contact number for the person that looks after your file. The lender will request that you submit a financial statement that proves you do not have the assets to pay for the debt.
Because your realtor needs to put the home on the market and find a buyer, it’s best to get started as soon as possible. Get all the phone numbers and give them to your realtor so they can suggest putting the home on the market while the paperwork is getting processed. Most lenders have mortgage insurance that covers them in case of loan defaults. This allows them to keep their risk to a minimal amount.
Shane And Sheleana work together to educate home buyers and sellers in Delta. BC is a beautiful place! Find a Realtor who knows how to showcase it.
Home Value less Then Mortgage
