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We talk regularly with homeowners who find themselves “upside down” on their mortgage, meaning that they owe more than the home is worth in this market.  What are their options? 

• Many of these homeowners continue to make their monthly mortgage payments, and pray that the value of their home will rise before their nest egg runs out.  This is an admirable approach, and one that we would never discourage.
• Some homeowners accept a sale price that is less than the mortgage owed, and then bring a check to closing to cover the difference.  Another admirable approach.

A more common option in the current market is to go through the short sale process, in which the bank approves a sale price that is short of the mortgage balance—and then writes off the difference.  The homeowner receives none of the proceeds, but also walks away from the deficit and the burden of ongoing mortgage payments.

The Boeglin Team has helped quite a few homeowners in Spanish Wells and nearby areas to successfully negotiate the short sale process.  Recently, Coldwell Banker established a separate department to assist its realtors in dealing with the unique issues of this process.  New Federal regulations are now designed to make a short sale easier and quicker.

If you, or someone you know, is struggling with an upside down mortgage situation, the Boeglin Team is here to help. We can meet with you to explore your options, and to explain the short sale process as it applies to your circumstances. All information will remain completely confidential.

These are uncommon times, and uncommon times sometimes require uncommon approaches.