“My neighbor refinanced and has  such a small payment and was able to keep their home”… “Well my neighbor walked away now that house has been sitting vacant for 9 months and the yard is awful.”

As an REALTOR® in Phoenix Arizona I have heard the conversations. Even in my cul-de-sac sits a vacant home that is bank owned but has not been listed and the yard and termites have really become an eye sore. I can advise as a real estate agent the value of a home and guide clients, friends and family to the right sources to start the process of moving forward. Each situation is so different. Maybe you took a second out and used as cash or never refinanced and still have one loan but it is with a private lender. There is NO general right answer to what you should do. There are first steps to get to the best option if you are exploring a Short Sale, foreclosure or refinancing.

The first step is to know who actually owns your loan. Here is a link to look your loan up:

http://www.makinghomeaffordable.gov/tools/does-fannie-or-freddie-own-your-loan/Pages/default.aspx

Now what do I do????

If you have a Fannie or Freddie loan there are government programs that you might be eligible for. At this point I would call your mortgage person /company and ask what options they suggest. If your loan is not with Fannie or Freddie still call your mortgage person/company and ask what they will do.  Many lenders will agree to a short sale if the seller contributes something. What is the magic number it varies on each case. For example a bank could accept a contract at full market value of $500K and the seller to contribute $10K.

The other sides to a short sale involve  anti deficiency statues that should be discussed with an Real Estate Attorney and also the tax consequences that should be discussed with your CPA /Tax Professional. I require my clients to have in writing that they have consulted with both and if they have one a financial advisor. After you understand the options and consequences then we can establish the market value start the short sale process.

If you would like a complimentary General Market Value for you home in the Phoenix and surrounding areas email your name and address to Veronica@peggyrauch.com