MURRIETA'S REO REPORT

                                                             THE ANATOMY OF A SHORT SALE PART 2

Is there anything else that home owners who are facing default on their mortgage can try before selling short or letting the house go? Well, here are two one might consider:

• Try doing a Loan Workout with the lender this works as follows: You as the home owner contact the bank or lender and try renegotiate your loan. If by lowering your adjusted interest rate, they can keep your loan on the books this might be worth the effort. In some cases the bank might be able to forgive some of the debt owed. If neither of those works for the bank then see if you can get your monthly payment lowered. The idea here is to try everything you can to avoid the inevitable.
• Or maybe the bank would consider a Deed in Lieu of Foreclosure: This is where the home owner gives the title to the lending institution for full consideration of the debt owed. The banks benefits by avoiding the expenses incurred by going through the foreclosure process and the home owner keeps a default off their credit.

Until the banks come up with a better way to do things for people, I think we are going to see many more short sales on the market. If this is the case then much improvement is needed to get these deals done. In my next post on "The Anatomy of a Short Sale" I'm going to take you through a typical short sale that I'm currently involved with as the listing agent. You'll get a court side seat and see how the process works.

If your looking to sell your home in the Southern California area go to www.soldbybarr.com to experience a home SOLD BY BARR. Maybe your home could be the featured home.