If you are facing foreclosure, you may not be able to remove yourself emotionally from the process enough to do the math and realize that holding on to your property just doesn’t make good financial sense.

Let’s assume that you owe $250,000 on a 3 year old home that is now worth $100,000. Let’s also assume that the Phoenix market recovers and homes starts to appreciate by 5% per year.  First, it would take roughly 10 years just to get to a break even point; meaning that you have paid the mortgage down and the value has increased such that there is zero equity.  It would then take roughly another 17 years to pay the house off.  No one typically stays in a house that long however.

Now let’s look at another scenario. Let’s assume one of our short sale experts gets your short sale approved and you sell the home and no longer have a mortgage.  You take the next 3 years to rent a house and rebuild your savings. Now 3 years later, you are able to put money down on a house the same size as the one you sold, but this time you are paying $110,000 for it. You put 3% down and you start out with equity and start to pay it down. Do you see the huge difference here? In the other scenario, in three years you would still have a negative equity of roughly $100,000. That is a HUGE difference.

Trust me when I say, that I know it is a hard emotional decision.  What I want you to see is what it looks like on the other side of recovery; it looks like money in the bank!

If you have questions about your specific situation, contact us to connect with one of our short sale experts today! No matter if you are in the Phoenix market or any city on the US, we have a trusted network of short sale experts that can help.