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Is a Short Sale worth the effort to a someone facing Foreclosure?

By
Real Estate Agent with Allison James Estates & Homes, Sarasota 941-957-3737

Have you heard the latest statistics that report that appoximately 1 in 7 homeowners in our Nation are in financial, Real Estate Distress?  What is even more alarming is that 50% of all the properties being foreclosured are on properties where the former owner never tried to sell the property to prevent the Foreclosure from happening.

As a REO Broker Associate with Keller Williams Realty in Sarasota, Florida, we see this almost every day.  We receive REO assignments and have to report to our clients the prior marketing price before the home was foreclosed.  In most cases, the home was never listed and in many cases the property had been abandoned for a considerable period of time.

What are the Options that are available to a homeowner that ...

  •  Owes more money on their property than the property can sell for. 
  •  Does not have the financial means to make up the back payments, pay down the mortgage, and can no longer continue to make the mortgage payments on their property.
  •  Mortgage modification and refinancing options have not worked, in their situation.

The three main Options are: Bankruptcy, Foreclosure or Short Sale ... What is the differences between the three?  There is a Huge Difference, in a one simple word ... "Recovery". 

  • Bankruptcy - the consequences can last the longest on your credit and ability to purchase another home.  If someone is considering Bankruptcy, my advise would be to first talk a Qualified CPA. 
  • Foreclosure - This may not only affect your credit, but could affect your employment options in the future and still could take 7 years to be able to secure new financing for a new home.
  • Short Sale - Definitely a tenuous process, however upon success can enable you to purchase a new property in as little as two years.  

Is a Short Sale worth the effort to someone facing foreclsoure?   ... Absolutely!

Our office specializes in marketing REO Bank Owned Foreclosure Properties and Short Sales.  We can assist sellers in exploring all the options available to them, if they are facing foreclosure.  For more information, see our website www.SRQForeclosureRescue.com

If you are a buyer and want to see all the REO Bank Owned Foreclosures and Short Sales currently for sale in Sarasota, Florida, view our website www.SarasotaRealEstateGallery.com  

Troy Funk  Keller Williams Realty on the Water, 665 S.  Orange Ave., Sarasota, FL 34236   941.957.3737

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For more information on Short Sales in Sarasota and Foreclosures in Sarasota, please CONTACT USWe have over 25 years experience in real estate, and have been highly successful in negotiating short sales in Sarasota County & Manatee County, Florida.

Troy Funk, CDPE, SFR
Sarasota Certified Distressed Property Expert
Sarasota Short Sales & Foreclosures Resource
Florida Licensed Real Estate Agent

Allison James Estates & Homes
665 S. Orange Ave. #2
Sarasota, FL 34236
(941) 365-8769
Troy@FunkFL.com

SarasotaShortSaleNEWS.com

WATCH this Sarasota Short Sale Testimonial Video

Show All Comments Sort:
MARY MITTEN
Keller Williams Premier Partners - Mandeville, LA

Troy:

Absolutely.   Short Sales make sense.   Ive been involved with several including those where we brought in 3rd party trust and some where I handled the negotiations from the buyer/seller (dual).   Neither type is quick but the seller at least has hope with the short sale.  I'm going to reblog this to my blog.  Thanks!

Jun 14, 2010 06:13 PM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

It sure it.

Especially now that HAFA has taken effect.

The seller can get $3000 in relocation expenses at the close of escrow on the short sale.

Jun 14, 2010 06:22 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I know it is worth the effort and I have many a client that knows so after the deal is done.

Jun 14, 2010 06:45 PM
Cristian Tramontozzi
Keller Williams Realty, CDPE SFR - Sarasota, FL
Real Time Realty Group

Recovery is such a big part of it.....

Jun 21, 2010 02:45 AM
Home Loan Search.Online
Home Loan Search Online - Newnan, GA

I've known families that have tried to refinance but haven't thought of a short sale. It would absolutely be beneficial for families to short sale the home.

Jun 21, 2010 02:55 AM
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

Depending on what other debts one has, bankruptcy can be a very good option. That's because generally a bankruptcy will allow you to keep your house, furnishings, a car, personal belongings, etc., as long as none of them are extravagant. Once all the other debt has been discharged in bankruptcy, one can then afford to make payments on the mortgage. Interestingly, as soon as the bankruptcy discharge is published, companies are lining up to send you new credit cards, get you into a new car, etc. That's because you still have a job and little debt, so they want to be the first to help you get back into debt. It's a strange system, but it works. I've helped two friends do it over the pst three years. Both are still in their houses, have no debt, and making all their other payments.

Jul 05, 2010 04:22 PM