Kathy Henne: Salvaging credit and equity


The issue of pricing strategies was recently addressed here, particularly for facing moving deadlines or selling a home that’s languishing on the market. But what if you’re experiencing financial hardship or losing valuable equity in your home?

If you’re facing mortgage default and want to avoid foreclosure, you’re probably looking at a short sale, which is an agreement with your lender to sell your home for less than what you still owe. This pricing strategy is challenging, because you have to list high enough to satisfy the lender, but low enough to attract buyers.

First, complete a short sale application from your lender and get an idea of how much they may be willing to accept. Work with a real estate agent who has lots of experience with short sales to find that sweet spot between what the lender wants and what will excite buyers, and you may be lucky enough to receive multiple offers.

If you’ve been off work or had your hours seriously cut during the pandemic and you’re struggling to make your mortgage payment, contact your mortgage lender. Many lenders are cutting the monthly mortgage payments for several months so you can catch up. The lender will add that money on the end of your mortgage. Reach out to your mortgage lender and explain your circumstances. Find out what they’re willing to do for you. The bank doesn’t want to own your home unless there is no other option. Also, reach out to your trusted local Realtor for advice. We’re always happy to share our knowledge and experience with you. We’re here to help you.


By Kathy Henne

Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.

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