There are many things that you the consumer need to be aware of when contemplating an attempt on a short sale. The market place is changing and short sales are becoming an excellent option for the banks to avoid the excess fees that a foreclosure can create for them. The most important thing that you need to understand is that you are not alone - almost 40% of homeowners have missed at least one payment - and almost 70% of homeowners facing foreclosure simply do nothing. You can not give up!
The most important thing you need to understand is that working a short sale costs you nothing. Part of the process is that fees associated with selling your home are part of the short, so no money should come out of your pocket. Be aware of the scams who are out there - YOU SHOULD NEVER HAVE TO PAY AN UP FRONT FEE OR ANY MONEY FOR SOMEONE TO WORK ON YOUR BEHALF! Unfortunately there are people out there preying on distressed homeowners. We offer consultation to our clients fro free, so you should expect the same from anyone else.
When you contact either an agent or attorney for help avoiding foreclosure, their first objective should be to find a way to keep you in your home. There are many options out there, and a short sale should be the last resort. Homeowners are facing hardship for more reasons than buying a home they could not afford. Many loans were set up to favor the banks with the promise that values would continue to rise. The spiral effect of a falling economy has cost primary wage earners their raises and in some cases even their jobs.
Be wary of the "Successful Short Sale Agent" - I hardly count 3 out of 14 successful, but that is what some people advertise on. Make sure that your agent has the education and systems in place to meet all of the banks questions and qualifications. Right now, the industry standard education is the Certified Distressed Property Expert designation or CDPE. This has been adopted by RE/MAX International, and CDPE agents boast a 90% success rate on closing their short sales. Remember, a short sale is simply a regular transaction between a buyer and seller so you have to still sell the property. Most sales fail because they are listed at a low price to try and get a quick offer. You must market the home properly and show the bank that it is in their best interest to accept the sale.
There are many reasons why you want a short sale instead of a foreclosure. The most important issue that is often ignored is simply the mental anguish that a homeowner goes through. I have my own personal reasons why I decided to become a CDPE and help homeowners in trouble, and I want you to know that there is hope. Together we can help find the best solution.
Recap
1 - Do not pay for any consultation or services up front.
2 - There are many reasons why you want to avoid a foreclosure.
3 - Almost 40% of homeowners have missed a payment...Do not be embarrassed.
4 - Education and Training on the Short Sale process trumps throwing darts and hoping you hit something.
5 - Prepare and sell your home like a normal sale
6 - The first priority of any individual offering help should be to find a way to keep the home!
7 - Short Sales will replace Foreclosures in the marketplace by the end of 2009.
8 - Remember...you have a team of experts at your disposal and at no cost to you - Call Us Immediately!
Jimmy Mulhern
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