Today, there are 1,456 properties listed for sale in the Bryan College Station Multiple Listing Service. 1,286 of the 1,456 are NOT condominiums, town homes recreation properties or mobile homes without land.
One issue which exists in the Brazos Valley is that no “field” can be found on the MLS data display to identify which properties are Short Sales and which ones are Foreclosures. So, how do you know how many homes in our real estate market can only be sold on a Short Sale, where the bank will take less than the current loan on the house? We have no way of knowing how many homes are being sold by the lender after foreclosure, so how many homes are listed for sale where the seller is in a distressed position? Who knows?!!! ??
Does the public know what a Short Sale really is? (e.g., the owner is trying to sell their home for less than they owe — they are “underwater” on their mortgage).??
Short Sales make up a large percentage (20%, 30%, etc.) of the total listing inventory in some real estate markets. Therefore, if you are in a position where you need to sell and you owe more than you can get back, there are a lot of things to consider. It is both a difficult decision and a challenging process.??
The first step you should take — call a Realtor who knows how to handle Short Sales!??You may have a few options if you owe more than you can sell your property for and you have no choice but to leave:
Do you know what happens during a Short Sale? Could you get a 1099 from the lender for the money they “forgave”? For instance, if you still owe $110,000 and sell for $100,000, the lender “forgave” $10,000 and could send you a 1099 so that you would owe income taxes on the $10,000. Were you aware of that? A Realtor who knows Short Sales would make sure you were so that you could decide the best course for you and your family.??
Is the bank able to foreclose on your property while you are trying to sell it under a Short Sale? YES!??
In addition, what will a Deed in Lieu of Foreclosure mean to you? Will it mean that you can just return the house to the bank and have no liability? Not necessarily. Some banks will not take the property back that way.??What about loan modifications?
Can the bank foreclose while you are in negotiations with them to modify your loan so that you can stay in the home? YES! We see it happen all the time!??
So, is it better to just let the house be foreclosed? No, not usually because, even with a foreclosure, the bank can send you a 1099 for the money they lost having to foreclose and resell the property. Also, think what this will do to your credit rating. Yes, your credit is taking a big hit if you are behind in your house payments, but add a foreclosure to it and then you really have damage for about 7-10 years. And, you may not be able to get another home loan for a very long time.??
So, if you are behind on your house payments what do you do? Call me and I will give you a little direction!?Then…?
Remember there are options: ?
If you are thinking that you might need help, let me know. I will let you know if you will be better served by an agent in another area. Be careful what you read on the Internet. You cannot believe everything you read! Beware of anyone who tells you there is an easy way out or they ask you to pay up front and they will “fix it.” Remember the old adage “If it sounds too good to be true, it probably is.”??
Over the next few weeks and months, I will be writing more about Short Sales and Foreclosures. I would rather that we do not have Short Sales or Foreclosures, but I don’t believe that is possible in this economic environment. Perhaps it will be possible in the future, but not for now.??
Century 21 Beal, Inc.