We have seen so many property owners in Myrtle Beach and other areas of the Grand Strand who have found themselves owning a home, condo or land where the mortgage is significantly higher than the property value. Not only has this happened to investors in Myrtle Beach, it has happened in real estate markets all across America.
There are many fears that a homeowner faces when finding themeselves in this situations. Probably the biggest fear I hear is the negative credit reporting issues that one may face if they do a short sale. It is true, there could be some negative impacts on a credit report, yet many sellers are realizing that a temporary blemish on credit for the ability to sell a problem investment out-weighs the benefit and could be a smart decision.
In the Myrtle Beach real estate market, we are starting to see the mortgage lenders start to lend again. With so many owners going though the short sale process, lenders are having to consider loosening their mortgage criteria in order to do so. There are so many good borrowers who found themselves stuck in a bad investment, yet have never missed payments other than that one property they bought at the top of the real estate market. Banks are starting to look at the total borrower - not just their credit report.
Early this year, we had a buyer get qualified for a mortgage even though they had just sold their home 15 months ago via the short sale process. In this case, they were forgiven thousands of dollars via a short sale and were able to buy again. Most owners don't know this is a possibility, therefore stay in underwater homes for fear they will never get a loan again.
Every situation is different and it is important that you discuss your options with a real estate professional before making any decisions. There are more solutions offered from the banks than you may know.
Please contact us if you want to know how to qualify for a loan even if you are in need of short- selling a home or condo in the Myrtle Beach area.
~Greg Harrelson
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