As a listing agent here in one of the hardest hit markets in the country I waited anxiously for the implementation of the government mandated HAFA regulations. My hope, as with most Realtors, was that it would sreamline an at best bumpy and unpredicatable ride. I know, I know, I was probably putting too much faith in yet another program roll-out that has the best of intentions, but still lacks the staff and organization to implement the program. With that said, I must say I am so far impressed with the speed with which most major lenders are approving short sales. I finally feel as if I can enter into a short sale and be able to convey to my Sellers that there is a good chance we can get this accomplished in a 3 to 4 month timeframe. Of course, there is still the second lien holder's to contend with and other liens that most Sellers are coming to the table with, but there is hope on the horizon that they too are coming on-board. Even getting lenders to completely release the lien and more importantly the promissory note. No more debt to carry forward, thereby allowing the Seller to start rebuilding their credit.
It is also helpful that most lenders are now accepting the fact that statistics show the lender loses at least 13% less when a short sale is negotiated rather than foreclosure. Meaning that the Seller's deficiency is significantly less when reported via 1099. Although Arizona is an Anti-Deficiency state this is really critical for the 2nd home owner and the investor who will most likely have to pay taxes on the deficiency. Every person, whether short sale or foreclosure, is going to get a 1099 for the transaction. Lenders are constantly striving to have Realtors get the word out about short sale negotiations and are hopefully becoming more and more ready to implement key government-mandated legislative changes.
The benefits to the Seller for pursuing a short sale are numerous, but the top 3 would be as follows: 1. Up to $5,000 in relocation monies paid by the lender.
2 The ability to live in the home, mortgage-free, during the negotation period.
3. Significantly less damage to your credit through short sale vs. foreclosure, thereby decreasing the possible tax liability to you. Whether you do a short sale or a foreclosure you will get a 1099, so minimize the deficiency through a short sale.
As a multi-certified Realtor (SFR, CSSN, CDPD) that works with all lenders and lien holders I know what it takes to get an appoved short sale. It does matter who you have negotiate your short sale, so make sure you hire a Realtor who knows all of the processes to follow to get you every possible benefit for you. If you or someone you know needs the services of a hard working, committed Realtor I would appreciate your passing on my name. I also offer a generous "Thank You" gift card for every closed short sale just for referring my services. Of course, time is of the essence. If you have received a Notice of Default or are under "Foreclosure Watch" call me today. The sooner we initiate the short sale the better success we will have. Don't allow the bank to control your finances for the next 7-10 years as a result of a foreclosure. By mitigating the damages through a short sale you can save on everything from credit card interest rates, car insurance rates and even loss of employment opportunities by working with me. Not every Realtor is the same, education/certification matters. We are in difficult financial times, but you don't have to face them alone. Allow me to begin fighting on your behalf. The lenders have attorneys and collection agents working for them so isn't it time you had a professional fighting for your rights. I can be contacted via e-mail at KLeroys@gmail.com or by phone at 480.510.1943.
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