Why Short Selling is Still the Best Option for Underwater Homeowners
The news is full of encouragement about housing values and how quickly they are increasing. However, for most underwater homeowners in the Las Vegas area, it is still unlikely that your home will be worth what you owe on it in the next 5-10 years if you bought during the peak. It is even less likely that you will be able to sell for any profit to give you enough to use as a down payment on your new home. For that reason, a short sale still may be your best option.
The main problem with hoping for prices to continue to rise is that they dropped so much quicker than they are currently rising. Even if home values continue to rise quicker than a normal 3% per year appreciation, you will probably still be underwater 5 years from now if you purchased during the boom. At some point in the near future, the rapid housing increase is going to subside and pricing will stabilize. It may even dip down a small amount. For that reason, it is still a great time to short sale your home to be able to move forward and get out from under your negative equity.
An overwhelming majority of people still believe in home ownership and a short sale is not the end of the road if you still have that desire. It currently takes 2-4 years to be able to purchase again with most lenders after a short sale depending on the amount of your down payment. However, there are lenders in Las Vegas that will lend 1 day out of a short sale with 20% down. Some lenders charge a higher than market and some charge rates closer to market. You could go out and purchase your neighbor’s model match home the day after your short sale closes for current market value and pay a fraction of your current mortgage payment.
Sometimes it is difficult to make the decision to act when you are facing something daunting like an underwater home. If you take a step back and do the math on how much money you would save over the course of 5 or 10 years by getting out of your underwater home, you would jump at the opportunity to do so. It’s always a good idea to take emotions out of the equation and make a good business decision when it comes to your underwater home. It may not be the right decision for everyone, but it is worth investigating your options to see how you can become financially liberated from your home while short sales are still available.
If you are in need of aggressive, courteous and professional representation, contact Cogburn Law Offices today. We can help.