From Foreclosure to Freedom

How a real homeowner escaped an unmanageable mortgage without going through foreclosure.  For Dan and Jessica M., their homeownership dream always involved building a house on a piece of land. “We built a house on half an acre,” said Dan.  In order to achieve their dream, they stretched a little beyond what they were comfortable with by getting two adjustable-rate mortgages, a common practice at the time. “The introductory rates were 8.5% and 11.5%, but our lender said, “don’t worry, you can refinance after two years.’”  For a while, they were getting by. Then, a couple of things happened. “We had our first child, and soon afterward, Jessica lost her job,” said Dan. “Soon, bills started piling up.”  Because they believed they’d be able to refinance, they started paying their bills on credit cards. “We hung on for the full two years hoping we could refinance at a lower interest rate, but when the time came, our lender said no because our home’s appreciation was too low.”  Their payments began increasing. Starting at $1500 per month, the payments ballooned about $100 more every month. Before long, the monthly cost went beyond anything they were able to afford.  “I tried to find more work,” said Dan. “Jessica found a temporary position and I worked nights, but not getting to see each other for days became too much. I couldn’t believe the strain on our marriage.”  Dan and Jessica had a couple of friends who had been in a similar situation, so they put them in touch with the agent who had helped them out. The agent had a lot of information for them. “She came to our house, looked at our financial situation, and explained all our options.”  Most importantly, the agent explained the difference between a foreclosure and a short sale. In a short sale, the bank agrees to allow the home to be sold for less than the amount due on the loan. “With this information, we were able to decide that a short sale was our best option.”  It was a stressful process, but the agent helped them tremendously. She even kept a potential buyer from walking when the process was taking longer than expected. “Honestly, if it weren’t for her, the buyer would  have left and we’d have been stuck.”  “I can see why a lot of people might give up,” he said. “But I don’t think we would have the hope and opportunity we have now had we not gone through a short sale. It was most important who our agent was. She was honest and encouraging and helped us reach this happier, more stable place in our lives.”  If you or someone you know is in this situation, you are not alone! As a team of certified short-sale experts with Coldwell Banker Residential Brokerage in Oxford, we can help you navigate all of your options and come up with the best possible solution. Contact us today for a free, confidential consultation and take the first step towards becoming the next success story. Call Carmen Burns at 203-305-2438, or Molly Farrington at 203-305-3993, or email us at 2ShortSaleExperts@gmail.com.