It is pretty hard to come out of either 2008 or 2009 without hearing a lot about either foreclosures or short sales. A short sale for those of you who aren’t familiar with this term is when the bank is willing to accept less than what is owed on the mortgage in order for the home owner to sell their home.

So if someone owes $200,000 on their mortgage but can only sell it for $180,000 (which is the current market value) and the bank has accepted the loss it would be a short sale. However, only those in dire need with a job loss, severe medical condition along with other legitimate reasons with no assets are eligible for a short sale. Just as a matter of good economics most banks will prefer to go the short sale route instead of foreclosure moving forward. The average bank will lose 35-45% of the value of the loan on a property compared with losing 55-65% when they foreclose. What is even more alarming at this point is the fact that 28% of the approximate 45 million homeowners that have a mortgage owe more on their mortgage than what the home is worth. That statistic is expected to climb to 51% by 2012.

With the economy and job loss where it is, if you take 12 homes on any given block, 2 of those homeowners are having a hard time making their mortgage. The message here is that if you find yourself in that tough situation or know of someone that is experiencing any of the above—we can help.

Scott Matthias recently completed his CDPE (Certified Distressed Property Expert) designation and has shared his expertise with the team. This designation gives the Matthias Group the expertise to deal with the banks to help our clients with the short sale process or we can assist and advise you with a loan modification. Colorado has a very successful Colorado Foreclosure Prevention Hotline that is available and proud to help you in avoiding foreclosure. The number is 1-877-601-HOPE.

Many people are in trouble and with this new designation we can help!!