A Short Sale is a Fire Sale ... without the Fire

When it looks like you’ll lose your house to foreclosure, would you stand idly by and watch the bank take your home out from under you? 

Or would you try to fix the problem? Apply for a loan modification? Borrow from a family member? Or when all else fails, do a Short Sale?

Because a Short Sale is just like a fire sale, but without the fire.

Keep the home fires burning

Negative equity has overtaken the American real estate landscape. What started out as an isolated problem — owing to subprime loans and irresponsible lending practices — has escalated into a full-scale crisis affecting one in four homeowners.

Think about that for a moment. One in four homeowners is underwater. One in four homeowners owes more on their mortgage than the house is worth. One in four homeowners is scared of losing their home if, for some unforeseen reason, they can’t meet their monthly mortgage obligation.

Out of the frying pan and into the fire

When you purchased your house, you counted on it increasing in value the way real estate has done for decades. You knew that if you had to move on due to illness, job change, income loss, or any other reason, you could sell your house and start over someplace else.

Then everything changed. You became a prisoner in your own home ... under house arrest.

Baptism by fire

You probably purchased your house when the market was on fire with overblown values. Just a few years later, when the fire started to consume itself, you were helpless to do anything about it.

Now you’ve fallen victim to circumstances beyond your control. Except you do have control. You can sell your house as a Short Sale. With a Short Sale, you can —

1. Sell your house and start over.
2. Avoid foreclosure.
3. Completely eliminate or substantially reduce your financial liability.
4. Minimize damage to your credit rating.
5. Purchase another house in 2 years.
6. Take care of the problem responsibly.

Doing a Short Sale isn’t for the faint of heart. Nerves of steel, constant diligence, and endless patience are required. In the end, when the sale goes through, it’ll be worth the extra work and those sleepless nights.  

Fight fire with fire

A Short Sale should be treated just like any other house for sale. By not skimping, shortchanging, or selling short the home or the homeseller.

• Your home should be marketed the same as a regular listing. Sellers deserve no less for the house they call their home. Likewise, buyers deserve no less for the house they want to make their new home.
• An aggressive pricing strategy should be applied. Homeowners facing foreclosure don’t have time to wait. Once the house has been listed at a price reflecting current market value, it should never be allowed to stagnate. If the house doesn’t immediately generate interest, the price should be lowered. And lowered again and again until a buyer comes forward with a strong enough offer. Usually this process takes no more than a month or two.
• Short Sales are really long sales. Getting a contract on your house is not the problem. Getting your bank to approve the Short Sale is another story. This is where the steel, diligence and patience parts come in.

 Light your house on fire

When you find yourself leaping out of the frying pan only to land in the fire, it’s time to yell, “Fire!” So do it. Get it out of your system. Then do something about it.

Related Websites and Articles

U.S. Homes Lost $1.7 Trillion in 2010

30% of Mortgages are Underwater

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 JUDY CHAPMAN |What can I do for you?  

Residential Sales ∙ Short Sales ∙ Residential Rentals

Koenig & Strey | 1925 Cherry Lane | Northbrook, IL 60062

Judy@JudyChapman.net | Office: (847) 521-4111

     

© 2007-2011 www.activerain.com/blogs/NorthShoreChicago by Judy Chapman. ALL RIGHTS RESERVED. Portions of this content may be used with attribution. The information contained in this blog is the author’s own opinion and does not reflect the opinions of Koenig & Strey Real Living.