HELP! I'm upside down in my mortgage!

The truth is, many people are right now!  For most of us who bought homes in Jacksonville, North Carolina between 2000-2008, we saw mortgage interest rates in the neighborhood of 6%, 7%, and even 8%!  With interest rates starting out that high, it's hard to pay down on the principle amount of the loan within the first few years of paying it back.  Lump that in with sheisty lending practice and the worst economic recession this country has seen in almost 50 years, of course many of us would be upside down in our mortgages.

Fortunately the real estate market in Jacksonville, North Carolina has mainly been fueled and fed by the military community and VA backed loans.  Which means, for the most part, we've remained stable.  Statistically speaking, in a good real estate market, you will find 3%-9% of the market will be foreclosure homes for sale.  As of today, the market in Onslow County, North Carolina is 6.7% foreclosures.  
With that said, there is an increase of short sales in the market place as well.  Short sales, by definition, are homes that are being sold for less than what the seller owes on it, because the sale price of the home will not cover the liens or the cost of selling.  Not everyone qualifies for a short sale, and it is ultimately up to the lender to decide if it's in their best interest to accept it.  Short sale is a better option than foreclosure, because it doesn't stay on your credit report as delinquency, foreclosure, or bankruptcy.  Instead, it's reported as "paid in full or less than agreed."   And with concentrated effort on credit repair afterward, a short seller can be back in good standing within two years.  Another benefit of short selling is that personnel with security clearances won't suffer with a short sale on their credit report, as opposed to a foreclosure, which would disqualify that person from a security clearance.
Short Sales definitely have a benefit to both sellers and buyers, and there is a time consuming and an intense paperwork route that has to be navigated.  For more information, contact a REALTOR® who specializes in Short Sales and Foreclosures.

Amanda Parmer has devoted extra time pursuing education to better navigate the ever-changing world of short sales and foreclosures and has earned the SFR and CDPE (Short Sales and Foreclosures Resource and Certified Distressed Property Expert) designations to better serve clients, offer sellers a better alternative to foreclosure, and help educate the general public about our housing market.