Being a Realtor who Specializes in Short Sales in the Monterey Peninsula Ca area, I have successfully closed many short sales for my clients within the past years. Excitedly, I am starting to see many of my former clients return back into the market as new buyers! Even though it is rewarding to help someone stay out of foreclosure, I get a tremendous amount of satisfaction helping these clients celebrate as they dig their way back and move into their new homes!
I wanted to share this incredible story about one of our very happy clients.
Our client bought their home at the peak of the 2006 housing boom. They paid $693,000 for their home in a nice neighborhood. Hard times fell upon them after a job change. They found themselves no longer able to afford their loan after the interest rate reset 5 years later. They were forced to short sell it in 2011. Now 2 years later, they have saved enough money to do a conventional loan with 20% down.
We just closed on their new home! The good news is that they were able to buy their new home with the same floor plan, plus it had $30,000 worth of upgrades and a pool. This home sold only for $454,000! Their mortgage payment in 2011 was $4,200 and now it is $2,296. We were happy to help them out of their nightmare. They were not able to keep paying on their old home, and their savings were dwindling down to nothing and a forclosure was heading their way! So after so much stress, a short sale was the best decision for them. I negotiated with the bank on the short sale and the bank accepted the amount on the offer as full payment. There were no deficiencies owed to the bank. The bank forgave them for the difference of what they received and what was owed on the mortgage. With the new loan, they will only pay $276,047 interest over the 30 years life of the loan as compared to $675,000 in interest they had with the home that they short sold.
I was very elated to see a happy ending to their story. I often cry along with my clients when they lose their home and have to short sale. I remind them that this time will pass fast and they should look forward to re-entering the market in better shape. And at that time, we all celebrate as they open the door to their new home!
Kathy Dyer Realtor CABRE #01723710
KW Coastal Estates
Carmel Ca. 93923