Homeowners facing foreclosure should be aware of predatory practices that offer a way out that may not be in your best interest. There are a number of investors that will offer to purchase your home quickly. There often times is not title company involved and the paperwork consists of a purchase contract and documents to transfer the deed to your home. Typically, these investors are looking for homeowners facing foreclosure with equity in their home. It will be the single qualifying aspect of their interest in purchasing your home--the fact that you have EQUITY.
Short sales differ from the above described transaction in that the homeowner does not have equity in the home and is "upside down". This term means that they owe more money on the property than the property is worth.
There is a law in California that prohibits a Realtor or Real Estate Agent from representing an investor in a short sale. The purpose of this law was to protect the consumer from these predatory investment practices that sold the home right out from under the Homeowner. The law actually clouds the way for Realtors and Real Estate Agents to help homeowners who need to sell short with investors offering a possible quick sale. There is talk of the law being changed but currently we still are bound by the law.
One of the disadvantages of this law is that it prevents Realtors and Real Estate Agents from representing investors in the purchase of a short sale property. Many times it is an investor that can offer all cash or a fast close which is advantageous for all parties concerned in the short sale process. Details of the law as we understand it, are that if the homeowner has not received a Notice of Default and is not occupying the property, they can be represented by a Realtor or a Real Estate Agent in a transaction with an investor. This is open to interpretation and it is always advisable to see legal council in these matters. Again, to point out the difference here....in a short sale there is no EQUITY or risk of loss for the homeowner in terms of equity.
The main purpose of this post is the clarification of the nature of investors seeking to buy homes prior to foreclosure with equity in the home. If you OWN a home headed for foreclosure and you have equity in your home, call your lender and negotiate a WORKOUT. Search the internet for consultants and firms that are negotiating WORKOUTS for clients. Educate yourself about your options and be aggressive. Get references and investigate fully anyone offering to buy your home or the consultant you choose to work with.
Roger Butcher is a well-known consultant and speaker in Real Estate. I understand he is working with people to negotiate WORKOUTS. There is a fee which is not paid unless he is successful.
Visit our website to learn more and call us so that we can help you. We feel it is important to be helping people in this market and in this mortgage crisis. If you have refinance options, we can also help you find a good mortgage officer to work with you on all your options. We have to try everything to save your home.
Short Sale Specialists for Redding, California ~ We Can Help! Visit our website to learn more and call us so that we can help you. We feel it is important to be helping people in this market and in this mortgage crisis. If you have refinance options, we can also help you find a good mortgage officer to work with you on all your options. We have to try everything to save your home.
Visit our website www.ShortSaleSpecialistsGMAC.com. We have designed it for your use and as a resource for you to learn about your options.
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