ResortQuest Real Estate

There are some situations and life events that significantly change your financial situation and make it impossible for you to fully pay your real estate mortgage. Below is a list of items that are considered financial hardships that may help you resolve your financial crisis related to your mortgage. Talk to your lender and see if you can come up with a solution before you reach the point of foreclosure. When you’re in a stressful situation, you have better things to worry about.

Financial Hardships Include:

• Payment Increase or Mortgage Adjustment – In today’s market, this is the single largest reason for property distress.
• Divorce – One of the most common reasons for financial distress in the real estate market today. Financial distress to one or both may occur.
• Separation – The cost of maintaining two households often leads to loss of the primary residence.
• Loss of Job – Loss of employment leads to almost immediate loss of income quickly causing financial distress which may seem hopeless.
• Death of a Spouse – The death of a spouse is devastating enough for the family, and if that person was one of or the only wage earner, financial distress is almost always a given.
• Death of Family Members – Financial distress and emotional turmoil can result from the death of a family member whether that person was a wage earner or not.
• Severe Illness – The costs of ongoing medical care and medications, restricted or no ability to work and the time taken away from family productivity can start a cycle of missing bills leading to financial distress.
• Too Much Debt – Even minor increases in interest rates on credit cards can cause distress for credit card holders.
• Damage to property – Often when there is damage to a property, the funds from insurance policies may not cover the full amount of damage, and the homeowner may be unable to make repairs. Many times, the homeowner has to use the funds from insurance to survive day to day and provide new living arrangements.
• Relocation – Relocation may be a necessity, not a choice. Suddenly having to maintain two households for any significant time is not usually possible for many homeowners causing distress.
• Insurance or Tax Increase – For many homeowners one small increase in liabilities is enough to start the cycle of financial distress leading to loss of home.
• Reduced Income – When the economy is suffering, downsizing often occurs, wages are lowered and commission based income may drop causing a cycle of financial troubles.
• Military Service – While there is relief provided in very specific situations, military service can lead to unexpected financial issues. Extended duty causes measurable financial pressures.
• Inheritance – Heirs left with the costs to maintain a property,  including mortgages, taxes and utilities, may be thrust into financial distress.
• Business Failure – When a small business fails, the owner’s inability to pay mortgage payments often leads to loss of their home.

• Incarceration – Loss of income is likely causing distress and inability to pay bills.

Article written by ResortQuest Realtors Sissy Carroum, Jim Hibbard and Walter Michalke.

What Can the Distressed Properties Division Do For You?

For Buyers: Information and explanations of the current market climate.

For Sellers: Find possible solutions to avoid foreclosure.

Commercial Investors: Vital Information for informed decisions.

Asset Managers: Services and resources of ResortQuest.