A Short Sale, not a Foreclosure May Be Your Best Option For a Financial Recovery! 

    During the recent months of 2007 and 2008 the real estate marketplace has seen a tremendous amount of change: unfortunately it has not been a change for the better.

    A few years ago, when home ownership became much more difficult for many buyers because of the higher home prices, new adjustable loan options were introduced to the public by lenders in order to help buyers qualify for their loans. We now see the havoc this has caused. Many buyers are experiencing a backlash and are in shock to see how they have gotten in over their heads just struggling to maintain their homes that they can no longer afford. Home prices have declined in recent months and many buyers find themselves living in homes that are now worth so much less than what is currently owed on their property.

    When mortgage payments cannot be met, many buyers find themselves in a state of panic and uncertainty and don’t know which way to turn. The first decision usually made by the distraught homeowner is to avoid dealing with the problem as it is too painful. The homeowner is unaware of his options and does not understand the best way to go about resolving the situation.

    The answer to his problem may be a Short Sale, wherein the seller and the lender enter into an arrangement: the lender agrees to allow the homeowner to sell the property for less than the amount of the current mortgage loan. A foreclosure and eviction process leaves a traumatic effect on the family whereas with a Short Sale the sellers are ready to start over and purchase a new home in a relatively short period of time. The average time for a Short Sale usually takes about 3 months and the foreclosure can last up to 6 months or so.

    Knowledge is the key word here and it greatly benefits all parties concerned when sellers actually seek out this information and assistance from those professionals who actually specialize in Short Sale Transactions. Unfortunately, the financial industry and/or the lender’s terminology may be confusing to many people. The homeowner needs reliable assistance from a third party who better understands the lender’s language. Real estate consultants and mortgage brokers are capable of crossing this communications gap.

    Short Sale Transactions can be processed for both residential and commercial property owners. The property owner should search out a reputable company for financial guidance regarding his situation and should also acquire a good understanding of the services that are offered. Buyers beware! Scam artists abound and are on the look out for situations which require property owners to transfer title. Sellers and Buyers need to make every effort to be responsible in their decision making process and to search out and engage only reputable firms. Predatory lenders also seek out homeowners who are financially distressed and make promises that they cannot keep. Remember, if it sounds too good to be true, it usually is.

    Here are a few important strategies for the homeowner to use when considering a Short Sale Transaction:

    ♦ First and foremost do your homework and locate a reputable Real Estate Broker or other real estate professional who specializes in Short Sales Transactions. He or she will meet with you to discuss your situation and you will be informed of all the options and services afforded to you. Remember the professional is here to assist you through this difficult time. Being honest and working in good faith makes for better communication between all parties. Whatever you do, DO NOT try to negotiate a Short Sale on your property by yourself.

    ♦ Once your Real Estate Consultant has a strategy, he/she will speak with your lender as quickly as possible to begin negotiations. Don’t allow yourself to go further into delinquency: wasted time works against you. The greatest opportunity to get your lender’s cooperation before it declines altogether is to take action now.

    ♦ There is no need to be afraid of your lender as he is in the lending business and not real estate: he does not want your property! They want to work with you in order to ensure that the loan is paid.

Short Sale Vs. Foreclosure

Negotiated Settlement / Court Settlement

Seller’s Credit Bruised / Seller’s Credit Ruined

No Attorney Fee / Big Attorney Fee

Seller’s Peace of Mind / No Peace of Mind

Buy Again in 2-3 years / Buy Again in 7-10 years

Liens Negotiated / All Liens Extinguished

Seller Stays in the Property Longer and Avoids Eviction Process

Smoother Transition which May Avoid Bankruptcy

You may have only one chance to negotiate a Short Sale with your lender. Having a Real Estate Consultant in your corner offers you the best possible chance for success.

If you or some you know may benefit from a Short Sale please call me.

Claudette M. Busuttil, ABR, GRI

Tel# 407-361-4064