"Distressed Property" is a real estate term that describes a property owned by a homeowner experiencing significant financial entanglements such as imminent foreclosure involving the home. The term can also be used to describe homes that suffer from major issues such as structural damage or severe termite infestation.
Call Us for Assistance with Your Gig Harbor, Washington Distressed Property:
Selling a distressed home can prove to be an insurmountable challenge for most homeowners. These homes typically sit stagnant on the real estate market as interested buyers seek out properties in the area with less problematic profiles, and bolstering their appeal also means making thousands in repairs for most sellers.
Required repairs on a property being readied for sale can also greatly increase the timeframe of the listing process as well as cutting into the final profit margin. Worse, these issues are often only discovered during an inspection as a buyer is making final assessments before purchase. Delaying the sale is an option many homeowners take, but in the interim the seller is responsible for daily upkeep and maintenance costs.
Sellers of distressed homes nearly almost always underestimate the time it will take to improve a distressed home to fetch a premium price on the open market. Comprehensive repairs to key components such as the foundation, roof or plumbing of a home can take months, and any financial or legal entanglement is a total deal breaker in the majority of cases.
Homes in relatively good condition can become impossible to sell due to outside factors as well. Problem tenants can do thousands of damage to key amenities and installations in the home upon learning of a sale, and squatters can illegally occupy the home to rule out any sale-related activity.
The Making Home Affordable site (www.MakingHomeAffordable.gov), specifies the following documentation to qualify for a loan modification.
You can find Website Marketing for Gig Harbor website owners here: Gig Harbor Website Marketing
"Gig Harbor is a city in Pierce County located on a picturesque Puget Sound bay -- also called Gig Harbor -- across Tacoma Narrows from Tacoma. For centuries, the Twa-Wal-Kut band of the Puyallup Tribe had a longhouse and permanent camp at the head of the harbor. Explorers from the Wilkes Expedition discovered the harbor's well-hidden opening in 1841 and named it Gig Harbor because they had entered the bay in a small captain's gig. In 1867, three white fishermen entered the harbor and decided to make it their home. Over the next few decades, Gig Harbor grew into a bustling fishing village with distinctive Croatian and Scandinavian communities. Lumber mills and boat-building yards also sprang up. Boats and ferries continued to be the most practical form of transportation in Gig Harbor until the second Tacoma Narrows Bridge connected the Gig Harbor Peninsula to Tacoma in 1950. Gig Harbor incorporated as a town in 1946 with a population of around 800, but because of its proximity to Tacoma it grew steadily. As of the 2010 census, it had a population of 7,126. Tourism has replaced fishing as a main Gig Harbor industry, but the city's fishing heritage is preserved in the 17 historic netsheds that line the waterfront.
Fish, Shellfish, and Berries
The region's tribes, including the Puyallup, Nisqually, Suquamish and Squaxin, have long inhabited the small Puget Sound bay known today as Gig Harbor. Bands from the northern and southern parts of Puget Sound often camped on its shores as they roamed the sound in pursuit of fish, shellfish, berries, and roots. One band, called the Twa-Wal-Kut, established its permanent camp near the rich shellfish beds at the head of the bay where Donkey Creek enters Puget Sound. The Twa-Wal-Kut village consisted of a 100-foot longhouse and several smaller cedar huts. According to the band's ""dimly remembered"" oral tradition, they were once part of a Puyallup band that had canoed over from Commencement Bay (Eckrom, p. 15)."
The one reality about today's housing market is that many people have more questions than answers. The following information is intended to help you or someone you know better understand your situation.
Do I Qualify For A Short Sale?
The qualifications for a short sale include any or all of the following:
Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall - You have more month than money. A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
What Is A Mortgage Modification?
A mortgage modification is a process through which your mortgage lender changes any or all of the following:
Your interest rate
Your principal balance (through a reduction)
Your loan terms (example: from an adjustable to a fixed rate)
This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.
Why Would A Lender Modify My Mortgage?
Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.
What Do I Need To Qualify For A Mortgage Modification?
According to the Making Home Affordable Web site (http://MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:
Information about your first mortgage, such as your monthly mortgage statement
Information about any second mortgage or home equity line of credit on the house
Account balances and minimum monthly payments due on all of your credit cards
Account balances and monthly payments on all your other debts such as student loans and car loans
Your most recent income tax return
Information about your savings and other assets
Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources
If applicable, it may also be helpful to have a letter describing any circumstances that caused your income reduce or expenses to increase (job loss, divorce, illness, etc.)
How Do I Qualify For A Mortgage Modification?
The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):
Prior to contacting your mortgage lender you can quickly complete an eligibility test at http://MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP).
For a list of mortgage lenders and servicers, visit www.HopeNow.com.
What Is A Home Affordable Refinance?
If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.
What If I Don't Qualify, Can't Afford My Home, And Owe More Than It's Worth?
You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents with the 'Certified Distressed Property Expert' Designation have undergone extensive training in how to process and negotiate short sales.
A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.
What Are The Qualifications For A Home Affordable Refinance?
According to the resources released by the government, following are a list of qualifications:
You are the owner occupant of a one- to four-unit home
The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
At the time you apply, you are current on your mortgage payments (you haven't been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan.
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Closely Related Topics: Discover Motivated Home Sellers.
Related Statewide Reading Topics: Gig Harbor - Discover Motivated Home Sellers.