1. DAVIES TOP 5 TIPS
5 Tips for Real Estate Owners in Financial Trouble:
1. Gather all documents that you have in your possession relating to the purchase and
financing of the home. This will include your loan documents, deeds, purchase
contract documents, disclosures. Get a box; put all of these in one place. This is a
hassle, but well worth the effort. (You might be surprised how many lenders don’t
even have all of the paperwork.)
2. Meet with your knowledgeable real estate advisor. Get a realistic market perspective
on the value of your property as an opportunistic buyer would see it, whether you are
considering selling or not. Also learn from your advisor about what to expect from
the process of selling a home, as a distressed property or conventional sale and
develop a strategy for resolution. This will vary, depending on your property
location, market conditions, actual lender, number of loans on your property,
whether you and your property can qualify for federal or lender modification
programs, etc.
3. Make a detailed current financial statement of your assets and liabilities, income and
expense.
4. Meet with tax and legal counsel regarding consequences of any action you might be
considering, bring your documents listed above. This is very important, laws and
precedents change frequently.
5. Finally, make a well-informed decision about your financial and real estate future
given all of the information you have gathered. Questions to consider are: Under
what conditions could you keep the home? Do emotional ties to your home outweigh
cost to keep it? Who is affected by a short sale of your home? Are there moral or
ethical issues you have with walking away from a debt or having one forgiven? Do
your immediate financial needs take precedent over consequences of a short sale?
What concerns about your property are you unsure about telling
your agent?
DAWNA DAVIES • Davies Company Real Estate • Dawna@DaviesCo.com • www.DaviesCo.com