Some sellers in the Twin Cities Real Estate market and the country for that matter, have a home for sale that is going to result in a Short Sale. These sellers are attempting to sell their home, won't have enough proceeds to completely pay off the mortgage so their REALTOR, will negotiate with the bank to accept less than what is owed, all in an attempt to get off the mortgage and sometimes salvage their credit. In most cases, they will get no proceeds at closing. This blog is about a short sale where the seller who had a short sale listing, legally went home with $10,000.
This seller was foreclosured on by the bank in September 2008. The Sheriff Sale was held where the bank bids on the property so that it can get it back after the end of the Redemption Period. In Minnesota, homeowners have a six month redemption period after the Sheriff Sale where they can attempt to "redeem" themselves and still try to keep their home with a refinance or in some cases sell the home. In these situations and in this market, the sale of their home could often result in a short sale where they won't have enough proceeds to payoof the mortgage.
In this case, the seller purchased the home in 2005 for $225,000. The bank bid at the Sheriff Sale for the property, $99,000. Due to the declining real estate market here in St. Paul, Minneapolis, MN and surrouding suburbs, the property is now worth $130,000. The good news is that there was no second mortgage and only a $4500 lien from the townhome association.
We listed the property for sale at $135,000, received an offer within 3 weeks and closed 6 weeks later. The seller was able to pay for his own closing costs and redeemed the $99,000 Sheriff Certificate at the county. During this process, we never made a single phone call to the bank to negotiate for a short sale and the seller went home with $10,000 in his pocket.
If you know of anyone who is behind on their mortgage and wants to understand their options or has questions about Short Sales, they may contact the Rochelle Ann Allison Real Estate Team at 651.259.4683.
Relocating to the Twin Cities? Contact the Rochelle Ann Allison Real Estate Team for information on moving to Saint Paul and Minneapolis, MN at 651.259.4683
Posted By: Rochelle Ann Allison - REALTOR specialzing in Saint Paul and Minneapolis Real Estate 651.259.4683
Comments(0)