Stockton Real Estate Blog

This is certainly a hard time for homeowners underwater in their mortgage but we are certainly gratified when we can help someone in dire need. Rosa and Jose came to us three months ago and they had not been able to pay their mortgage in almost a year and were facing foreclosure. Theirs is an interesting case, Jose had lost his job and his wife was now working part time. They both worked in industries that had been hard hit by the economy.  They had a first mortgage with Wachovia for $395,000 and a second with Bank of America for $45,000. We sold the home for $225,000. The first mortgage was the easy part and even came with a $5,000 plus relocation bonus. Bank of America was a bit more difficult; at first they wanted a note and monthly payments of $500 monthly, we were able to negotiate a settlement of $3,000 which Wachovia paid. They are now relieved of all mortgage debt without paying a penny out of pocket and they may be eligible to buy another home in as little as 2 years.

It’s no secret that the Stockton Lodi area has been hard hit with the distressed economy and home values have dropped in many cases to 2/3’ds of their original value.  Unemployment has hit almost 18%. The majority of the homes for sale on the Metrolist MLS are distressed homes made up of both short sales and foreclosures.

How can you qualify for a short sale?

A home owner must prove to their lender that they have a financial hardship that hinders their ability, or will in the foreseeable future, to pay their monthly mortgage. For most homeowners behind on their mortgage avoiding foreclosure is the best option. Click here for our special report on avoiding foreclosure: Alternatives to Avoiding Foreclosure