Short Sales

• Negotiated Settlement
• No Attorney fee
• sellers credit bruised
• Lien negotiated

Forclosure

• Court settlement
• Big Attorney fees
• No peace of mind
• Buy  in 10 years again
• All Liens extinguished

Lender wins with a short sale.

•  Proceeds within 24 hours of closing.
• Reduced non performing inventory.
• Full blown apprasial/ BPO

Seller wins

Possible 1099 for forgiveness of debts. If they dont have assets they dont pay tax. They have to be broke! If seller owes more then 1 property this is not the best thing to do. If the seller has little or no equity they can walk away from the property with the help of a good realtor.  The seller will be left with credit that can be repaired in 2 years verses 7 with the forclosure.  Its a win win for everyone seller- buyer- bank.  The bank will also end up with more money in their pocket so they are happy to accept a short sale offer.  Agent is happy they have motivated sellers a property that is below market value and buyers that are happy to get a deal. 

 What is a  Short sale ?  Lender is willing to take less then what sellers  owe  just to close the deal.

Its a win win opportunity for the seller.

• seller stays in property longer.
• smoother transaction
• 0 proceeds to seller-seller does not owe bank money either.
• no defiency judgements

 The process with the seller.

• Creative offer from 3rd party
• avoids forclosure on credit
• may avoid bankruptey
• less worry- no padlock on door.

Top Short sale opportunities for Real Estate Agents.

• Health issues
• Lis Pendence
• divorce
• loss of jobs
• 2 house payments
• distressed sellers
• Forclosures

• Check  financing at least once a week with the mortgage Broker so that you can help the buyer  
• understand their down payment and monthly payments.
• You will need to buy a amortization table from your local bookstore. Be prepared to explain loan types  to prospects.. back end and front end ratios..You must understand this or you could spend months with a buyer who can not get financing.
• Beware of contingent offers.. the property could be tied up for months or even years. The buyer could be a dealer who wants to hold the property as if it were a option  that would be exercised only if another buyer is located.
• Understand fully the tax consequences of the sale.  Have you cosidered the advantages of a tax- free
• exchange where you choose the property you recieve?

If you are determined to sell your home yourself, I wish you good luck. I will, however, be here if you would like to discuss some of the advantages of having agency representation.

Thanks..I hope you enjoyed this post.