FHA Approved Pre-Foreclosure Sale Success

By
Real Estate Agent with Local-n-Global Realty, Cleveland and International Real Estate Solution BRK 2007000844

FHA Approved Pre-Foreclosure Sale Program helped make Short Sale in South Euclid a success story.

It feels good to complete a Short Sale and get sincere thanks from your selling clients.

We've just closed one  Short Sale in South Euclid OH. I mention the city only because it's the area where buyers better chose privately owned or bank owned sales over Short sales.

Short Sale is a stigma, and agent needs guts, persistency, excellent communication skills, and good preparation in order to make it happen. It's a stigma mostly because of too many uncertainties related to Short Sales. Fantasy of listing price is one of the biggest issues which makes most of the buyers unhappy with an idea of dealing with the Short Sales.

My selling clients and me were lucky this time because sellers were eligible for FHA approved pre-foreclosure sale program.

From the agent's point of view, there is one big advantage of working with this program: listing price gets approved by the seller's lender. When the sellers prepare and submit all the necessary documents to their bank, appraisal gets ordered, and whatever appraised value is, this price is recommended as the listing price.

If the offer is not produced during certain amount of time, seller's lender may allow a small price reduction, usually within 4 % of appraised value. If at this price there are no offers yet, another appraisal may be ordered, and sellers and their agent get another 30 days to procure an offer.

South Euclid House Sold by Local-n-Global Realty                                      South Euclid home sold by Local-n-Global Realty

That's exactly what happened during this Short Sale in South Euclid. First appraisal came high, and there was no way to convince any buyer to make an offer, despite all our tremendous marketing efforts to sell the house in South Euclid.

After second appraisal and consequent price reduction offer was received, accepted and approved. Sellers got the ability to move on with their lives and were granted the waiver of deficiency. Buyers got great home at a very good price. Lender avoided hassles and losses of foreclosure. Win-win, and I'm glad that Pre-Foreclosure sale program was a big help in avoiding the worst.

Good news for the buyers is that if the sellers of Short Sale properties are eligible for this program, transaction may actually go smoothly and successfully, given that you deal with experienced and patient agents.

 

 

 

 

 

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