Is a Short Sale For You?

IS A SHORT SALE FOR YOU?

 Our goal here today is to give you the reader a basic understanding of how the short sale revolution has evolved and how it can benefit you.  It doesn't matter whether you are a seller that has found themselves in a not so wonderful position or a buyer looking to capitalize on this unprecedented opportunity.

 Less than a year ago the banks holding bad paper were in denial about the severity of the economy and the mortgages that would be in trouble.  They continued with a high and mighty attitude of "you don't pay, you don't stay" and we will foreclose on you.  This behavior cost the banks dearly and by late spring 2008 the banks started looking at short sales as a way to decrease the amount of the loss.  Foreclosures are a lot more expensive than a short sale to a bank.

 Here is the process in a nut shell.  Seller "Mr. Jones" bought his home for $250,000 in 2005.  Mr. Jones mortgaged the home for $250,000. He has since lost his job and needs to move to become gainfully employed.  Today's value of this home is $120,000.  OUCH!  We have a step by step guide to get you where you need to go without foreclosure.  First we list the home at today's value. 2^nd we show you how to contact the bank to inform them what you are doing.  3^rd when an offer is made we present it to the bank for approval.  When offers come in that can usually stop the foreclosure process.  There is a window of opportunity for negotiation with the bank.  The bank has to approve the loss they will be taking.  To sell a home you need to have the bank agree to the loss to release the lean they have on the property for the mortgage.  This process can take 6 weeks or more.  I've been working on one for 4 months that finally closed today.  With the lenghty time frame we lose a lot of buyers but then the price acceptable is set by the bank and usually we can find another buyer quickly.

This is better for the Seller and a windfall for the buyer.