FORECLOSURE IS NOT YOUR ONLY OPTION…
· 1 out of 8 homeowners is facing a hardship.
· 4.5 million Homeowners owe more than their home is worth.
· 10 million homeowners will fall into default in the next 36 months.
These are some sobering facts. If you are a homeowner and you feel you might be falling behind contact me at www.yourexitrealtor.com.
As YourExitRealtor I want to stay on top of ways to greater serve my clients and help the general public in buying and selling real estate.
2 months ago I receive my Short Sales and Foreclosure Resource certification from the National Association of Realtors. I believe this will help me better serve people who might not be in foreclosure but have missed payments, and have the potential to fall further behind on their mortgage.
Let me explain what a Short Sale is. A short sale is where you list the house, and sell the home for below what the balance of the mortgage is. For more details please go to my website www.yourexitrealtor.com .
People who aSHORT SALE can help…
· People 30, 60, or 90 days late on their mortgage payments.
· People who owe more on their house than what it is worth.
· People who have suffered a hardship (divorce, death of a spouse, loss of job, health problems, etc.)
Who benefits from aSHORT SALE?
· Homeowner- saves them from a foreclosure.
· Lender- gets better price for the home.
· Neighbors- No collateral damage. Low home values.
1st – 3rd missed payments- Lender calls the home owner to ask why no payments have been made.
4th missed payment- lender hires an attorney.
5th missed payment- notice of default is filed
6th missed payment- auction date will be set.
It usually takes 5-7 months to complete.
1st – 3rd missed payments- Lender calls and sends late payment notices.
4th missed payment- Lender demands a Cure to the behind mortgage, and files a notice of default.
After the notice of default there is usually a 14 day lead time to the auction.
Short Sale Offer Timeline
A short sale is not a cut and dry offer and acceptance like a normal real estate transaction. To close a short sale property it takes 3-4 months.
First you submit the offer to the seller who in turn submits it to the Lender.
The lender will then review the offer (could take up to 60 days)
Once the lender has countered the offer or accepted the offer, the buyer generally has about 30-45 days to close the transaction.
Make sure to note that the bank will not do any repairs of the property since they don’t own it technically.
Why People don’t ask for Help
The main reasons people don’t ask a realtor for help selling a house that is going into foreclosure is….
1. They are embarrassed.
2. They are ashamed at what they let happen.
3. They are in denial
4. They don’t want to appear desperate.
Every person is different and will have a different reason why they didn’t ask for help. Most people believe that once you miss several payments there is no other option beyond letting the house go into foreclosure. That is why I am here to say that there are more options. Please don’t be too proud to ask for help. If you have the ability to short sale your home you can limit the damage to your credit score, and save some face by selling the property rather than giving it back to the lender.
I am here to help. If anybody reading this has experienced a hardship, and is having trouble making your mortgage payments please ask for help. By making an effort the bank will be more apt to let the small things slide.
www.yourexitrealtor.com for more information on how to get help when you are facing foreclosure.