Mortgage resets causing more short sales in 2015.
Just when it looked like it was over for shorts they have picked up again.
This time the number one cause in unaffordability. Many homeowners that
were given a loan mod 5 years ago are now getting letter from their lenders
with major price adjustments to their house payments.
These price hikes are large and are now forcing homeowners to default on their payments and seek help from their lenders for a second or third time. This time most are finding that the lenders are no longer willing to help. So they must sell or face a foreclosure. To sell is the best solution but many home values still have not come up enough to repay the mortgage if sold at market value.
This is why we are now seeing the come back of the short sale again in 2015 just when it was looking like short sale were going to be a thing of the past. Mortgage resets are causing more short sale again here in 2015.
A short sale is a solution to avoid foreclosure. A short sale will allow you to market and sell your home even thought you owe more the the current market value. You will net ZERO Dollars,but you avoid foreclosure and can remain in the home during the process which is taking 3 to 4 months to complete.
Here in California at the end of a short sale you are released of the mortgage in full and the lender can not come back after you for any deficiency. Plus you are NOT allowed to pay any costs of the short sale including agents commission..