This week we have been talking about the crises in the real estate market. One of the options for those who find themselves either upside down or unable to make their payments or both is to sell their home on a short sale. A short sale is when the net proceeds from the sale of a home fall short of paying off the loans against that property.
It requires the co-operation and approval of the lender and up until recently they have been very difficult if not impossible to deal with. Many sellers have found that the process is painfully slow and frustrating. Lenders will not
commit to an approved short sale until the seller submits a full package and an accepted offer. Then it still often takes months to get an approval. It has not been uncommon for a buyer to get tired of waiting and to withdraw before the lender renders a decision. And, in many cases, if the seller has stopped making payments, the property ends up being foreclosed on in the middle of the short sale attempt. However, with foreclosure and bank losses on the rise, the lending industry is now more receptive and is looking at short sales as a smarter business decision.
However, it's not a free lunch. You must qualify for the debt forgiveness by proving a hardship. What is a hardship you might ask. It means you for whatever the reason, do not have the means to either continue making the payments or paying the difference between the net proceeds and the loan balance. In some cases, the lender after reviewing the seller's financials will require a partial contribution from the seller in order to approve the short sale.
It is a complicated process and requires a real pro to pull it off. That's why I have partnered with one of the best loss
mitigators in the business to make sure my clients have a real shot at a successful outcome. Together we approach the short sale on a multi-pronged attack.
1) We help you by providing an initial package that is pretty universal as far as obtaining and meeting the information required by most lenders. With that information and your release to work directly with your lender's "work-out"
department we put together a package that has a far better chance of being approved once we get an offer.
2) We price your home very competitively. Lenders will not even discuss a short sale in terms of acceptable numbers until they see an offer.
3) At the same time we are working on the short sale, we guide you to help you negotiate with your lender to see if they will re-negotiate your loan and stay in your home should that be your desire.
4) We give you a referral to a bankruptcy attorney for a consultation to determine if filing bankruptcy would be a better alternative for you. Also, should we not be successful in getting your home sold with a short sale and you are facing foreclosure, bankruptcy may be an important consideration. It all depends on the loans you have that are subject to a foreclosure.
Don't trust this very delicate process to just anyone. Give me a call at 973-4532 and let me show you that with 39 years in the business, experience is not expensive, it is priceless.
# posted by
Viki Benbow @ 12:33 PM
