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Short Sale Information

By Anna Rose

Real Estate Agent with Carolina One Real Estate

December 17, 2008 12:51 AM

What is a Short Sale?

When your lender agrees to discount their Pay Off to accommodate the sale of your property. Requirements:

1) Hardship.

2) Sale value is less than loans + encumbrances + selling costs.

3) Delinquent (or defaulted) loan.

What is the Purpose of a Short Sale?

Facilitate Sale of Property to avoid foreclosure

Benefits the LENDER by:

1) Reducing the proportion of "bad debt" for which they are accountable..

2) Avoiding high foreclosure costs.

3) Keeps Home Occupied.

Benefits to the SELLER / BORROWER:

1) Avoid Foreclosure - Better Credit Score.

Missed payments: score affected by approx. 30 to 100+ points.

Foreclosure: score affected by approx. 140 to 300 + points.

2) Save money: stay in home "mortgage free" during the process..

3) It's the right thing to do.

Do you think you need help with a Short-Sale Transaction? If so, Please don't hesitate to call or email me!!!

Thanks for reading.

Anna M. Rose

www.AnnaRose-RealEstate.com

annarose@carolinaone.com

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Gene Allen

Fathom Realty - Cary, NC

Realty Consultant for Cary Real Estate

Sounds good but I would be wary of promoting 2 and 3 for the borrower/seller.

Dec 17, 2008 07:54 AM

Anonymous

Up-Date to Gene Allen On Short-Sale Information

Thanks for looking out Gene. Although, I'm not sure in which section you're referring too. However, I'll touch base on both sections just so you'll know where I'm coming from. The lender benefits on a Short-Sale (#2) by saving money on the foreclosure process (ex: Evict occupants, pay for rehab on property, legal fees, etc...). BANKS DO NOT WANT TO OWN PROPERTY-PERIOD! Even though a lender is taking a loss in agreeing to a Short-Sale, there is a lot of money they're saving to the expenses in associated with a foreclosure in a lenders perspective. (#3) The lenders prefer sellers/borrowers to still be living in the proeprty because it's better for the lender to know that the house is being taken cared of. Even if the Short-Sale falls through, it's better for the bank for someone to be living there.

The Benefit for the Seller/Borrower: (#2) What a Short-Sale translate to for a seller is "TIME TO SAVE MONEY"! Sellers can stay in the home anywhere from 2 to 6 months (or however long the Short-Sale process takes) and not make a mortgage payment and not feel guily about it. The lenders want that and the law for Short-Sales was written that way to help the sellers/borrowers in the transition. There's no hidden secrets with Short-Sales. As a Certified Short-Sale Professional it's our job to educate our clients on this information.

Dec 17, 2008 08:30 AM

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Anna Rose

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