We post information about Santa Clarita Real Estate daily. Sometimes, I wonder what I will write about next. However, in a distressed real estate market, there are always things to write about. Especially when “Sales People” are involved :-)
Case and Point – watching the news stream on facebook I saw a variation of the following:
“Dear Friends and Facebook peeps, if you are having trouble making your mortgage payment or know someone else who is, we have a Bunch of Buyers that can and will take over your mortgage. Our buyers are “self-employed” and are having difficulty obtaining loans because of their “stated income” status. They would be a great fit for you and it will save your credit…”
Excuse me while I brush my teeth… Okay, let’s us break this down. Someone that is having trouble making their mortgage payment needs to speak with a professional. Potentially a BK attorney. However, if they are going to stop making their mortgage payments – they can either allow the home to go to foreclosure or short sale it. If they are going to Short Sale their home – speaking with a BK attorney, as well as a Short Sale Professional, would be sage advice.
“know someone else who is”… Refer me please
“Bunch of Buyers that can and will take over your mortgage…” If you were right side up on your home and could sell it, when the mortgage payments were unable to be made, you’d sell it, correct? How does a “bunch of buyers”, or even a single buyer, finance a home that is upside down on the mortgage versus what it is worth? They cannot, unless they love the home so much they inject a lot of cash into it to bring the ultimate financing to a “Equity position”. That promise is unrealistic and is not likely to happen in most real estate markets. Buyers don’t want to pay more than what a home is worth.
“Our buyers are “self-employed” and are having difficulty obtaining loans because of their “stated income” status.” Self Employed buyers are easy to finance, they just need to provide documents to the lender. Tax Returns showing enough income to be allowed to qualify for a specific price range. Length in the business (certain minimums are required). Potential P and L(profit and loss) statements. However, if they cannot qualify for a loan, then this is moot. If they can qualify for a loan, and if your home does not have the Equity, how is their lender going to approve them to take over the loan or qualify for it?
Other Option – they rent it? How much are rents going for and how much is your payment? Probably, not the best option.
So, you hook up with a clever realtor – they give you the “best deal going”. You sign paperwork and all is well in the world. The person, that is now occupying your home, quits paying the mortgage. Who is the bank going to come after? You!
“save your credit…” Short Sales, now, take 3 years to pass before you can buy a home. If you are a VA buyer, you can do it at the two year, after the short sale, point.
If you short sale – your credit will be ripped to shambles. Not as bad as the damage a foreclosure does, but bad just the same. You should know this going into any Short Sale Scenario as a Seller.
Get good advice, not clever marketing by someone that will not mind throwing you and your family under the bus.
Final. The purpose of the “Facebook” plug, which I am speaking of, is to attract Short Sale buyers and Distressed Home Owners, or in a broader sense, to let everyone know that this “Realtor, is the “go to” for everything that is real estate.
A Better Way, don’t violate the TOS(terms of service) on Facebook. Get a Facebook business page and plug your business all the day long… That way you are not engaging in “deceptive works”, at least that are in the “Public’s View”.Google+