In a recent Money article, the publication reported that 10.7 million borrowers in the US owe more on their mortgages than their homes are worth. Such a staggering figure begs the question, are more foreclosures on the horizon, or short sales, or government bailouts?

We at the Mission Valley Real Estate Company hope to be able to help such “underwater” borrowers by completing short sales. A short sale is when a home is sold for less than what is owed to the bank. The homeowner walks away from the transaction with no profit, and the bank agrees to accept the purchase price as a pay off of the mortgage. Since the bank’s security interest was in the property, it may not pursue the borrower for the difference between the loan amount and the pay off from the sale.

The brokers at the Mission Valley Real Estate Company are experienced short sales agents who understand how to negotiate with the banks. Many banks are making it difficult to get a short sale approved, placing many homeowners in the difficult position of either paying on a mortgage that is far higher than their home’s value or allowing it to be foreclosed upon. We work hard to get the banks’ attention and avoid foreclosure for our clients.