It’s a hard reality but it happens a lot right now.
Some of the people who bought in the mid part of the 2000’s owe more on the properties than they can sell them for in 2010. Our good fortune in St. Louis we were not nearly as affected by this trend like some other big cities such as San Diego and Las Vegas.
The Mortgage industry calls this process a “short sale” It can be a slow painful process. The Mortgage lenders do not make it easy. It will be harder to sell if the loan has been sold to the secondary market, like Freddie Mac.
A lot of these loans had low down payments, which means they had to pay PMI or private mortgage insurance. It takes patience, agility, lots of approvals, and some praying to get these short sales done. It can happen and it is a lot better than a foreclosure on your credit.
We work with a short sale specialist here in our Hermann London office. We would be happy to refer you to a proven Agent.
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