The recent announcement of a new plan to help underwater homeowners refinance home mortgages brings more light on the problems many area homeowners are facing due to declining values in Murrells Inlet and Grand Strand area home values. While interest rates remain at historic low levels many residents are unable to take advantage of the low rates which the new initiative promises to change however in some instances a short sale might be a more viable option especially if payments are out of reach due to unforeseen hardships.
No doubt home prices in some neighborhoods have fallen more than the 20% initially offered under the refinance program and allowing thoses who have lost more value should boost the programs effectiveness but for homeowners that have lost value and income a short sale could be the right alternative. Avoiding a foreclosure not only helps borrowers get out from under unaffordable housing expenses but it also helps to bring more stability to the housing market overall and costs lenders much less than foreclosure actions. An added benefit of a short sale is the ability for the homeowner to restore credit much sooner than would occur in a foreclosure situation.
It appears more lenders are filing deficiency judgements in foreclosure cases in the Myrtle Beach area and while a short sale may require contributions by sellers it is likely far less than would be required once the home is sold as a foreclosure. In a short sale the lender is going to recoup more of the loan and by working in cooperation with your lender and with the help of an experienced REALTOR the short sale process could be the right course of action for underwater homeowners. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.
If you or someone you know if having difficulty making mortgage payments and would like to seek alternatives contact us today for a confidential consultation.