They find it hard to believe that they can rent a comparable or even nicer home for less than their mortgage. Here are the two factors that make it possible.
Many homeowners bought homes for more than they are selling for today. A perfect example is a homeowner that paid $600,000 for a home. His mortgage payment was around $4,000 a month.
He stopped paying his payments and moved to a rental. He found a nicer, similar sized home to rent for $2500 a month. He had tried for months to convince his lender to modify his loan.
They wouldn’t drop the payments below $3,200 a month. Even though the home he is renting is nicer than his house, it is selling today for around $475,000.
Someone can buy that house for $475,000 and rent it for $2500 a month without losing money. That is what makes it cheaper to rent versus getting a loan modification and staying in your home.
When prices were rising it was actually more expensive to own versus rent. But, everyone wanted to own because their house was supposed to go up in value.
House prices and rental prices have dropped since then. Yes, rents are not at an all time high! The dropped during the economic crisis and have come back up since then.
So, if you are thinking about a loan modification, then first check into the rental market. You will be able to negotiate your loan modification from a position of power.
That will make it more likely that you will get the reduced payment you need so you can keep your home. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at Tony@HunthausenGroup.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-334-7808
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Huntington Beach loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Tony Hunthausen.
Tony is a Real Estate Broker Associate at Remax Select One. Huntington Beach Short Sales Realtor:
Phone: 714-334-7808. Tony@HunthausenGroup.com.
Helping One Homeowner At A Time
View My homes for sale at www.SellingHuntingtonBeach.com.
Tony Hunthausen specializes in loan modification assistance and short sales in Huntington Beach California. Huntington Beach Loan Modification Help, Huntington Beach Short Sales. Huntington Beach Short Sale Realtor Huntington Beach CA Short Sales. Huntington Beach Realtor.
Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.
Tony Hunthausen, Remax Select One, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Hunthausen’s personal views and do not reflect the views of Remax Select One.
This information on Huntington Beach Short Sales: Why it is cheaper to short sell and rent versus staying is provided as a courtesy to our viewers to help them make informed decisions.