The Long and Short on Short Sales
What is a "Short Sale?"
A "Short Sale" is a transaction where the sales price for a property is less than the mortgage amount owed by the current homeowner and the lender or lenders agree to accept less than the mortgage amount. In some cases, the differences in forgiven by the lender and in other cases the homeowner must make arrangements with the lender to settle the remainder of the debt.
What is a "Potential Short Sale?"
A "Potential Short Sale" is one where the listing agent reasonably believes the purchase price may not be enough to cover payment of all liens and costs of sale and the seller is unwilling or unable to bring sufficient liquid assets to the closing.
Why are Short Sales becoming more common?
Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of Short Sales is increasing. Since a Short Sale generally costs the lender LESS than a foreclosure, it can be a viable way for a lender to minimize its losses.
A Short Sale can also be the best option for homeowners who are "upside down." (owes more on the property than the property can sell for) on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.
Short Sale Offer Approval:
Federal guidelines that give lenders a 10-day limit in which to respond to purchase offers. This guideline only applies to banks that have taken TARP bailout funding and DOES NOT apply to mortgages guaranteed by Fannie Mae or Freddie Mac.
The following contains a list of banks that have taken TARP bailout funding:
http://money.cnn.com/news/specials/storysupplement/bankbailout/
Timeline:
In the Short Sale Agreement, servicers must give borrowers / homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement. Servicers may not charge fees to borrowers / homeowners for participating in the FAP (Foreclosure Alternative Program).
We are short sale experts, working with Weeks Law Firm on all our Short Sales with counters back from the mortgage companies in as little as SIX WEEKS! We work in close communication with our sellers to make this option a success for all parties involved. If you are in a distressed financial situation, unable to make your mortgage payments, forced to sell your home and relocate, or upside down.... Please call us today! We have the knowledge, the experience, and the connections to HELP YOU MOVE ON WITH YOUR LIFE!
"I contacted 4 Real Estate Agencies when I lost my job and knew that I was going to need to sell my house. Weichert Realtors, Bryan and Tiffany, arrived at my house and were very professional. We walked the property and talked about all of the upgrades and assets of the property. They were able to explain the market in Summerville and advised me that we would have to do a short sale as the builder is now selling larger homes for less than what I owed.
The house was listed and marketed on all of the internet sites they use at a listing price of about what I owed to show my mortgage company we did try to sell it at a higher price. This did not get the job done and price reductions were used in order to get potential buyers to the property.
Bryan and Tiffany followed up on each showing and after much hard work we finally got an offer on the property. At this point the waiting game started. I no longer live in South Carolina, so Tiffany e-mailed me paperwork that had to be signed so I could e-mail, fax or send copies back to South Carolina. During this process, Bryan and Tiffany were always there to answer questions and help me understand what I was signing. They also have great contacts with a lawyer that works on short sales to ensure that all is done according to the law. Once the offer was made and accepted things moved along quickly and Weichert was there to ensure all was ready for the closing.
I could not have asked for anyone to be more supportive. This was a very trying time for me and Bryan and Tiffany made the process as easy as possible.
Thank you both for a job well done.
Debbie Nickerson"
Please call us today so we can do the same for you!
Tiffany DeSantis @ 843-991-3706 cell | Bryan Hammond @ 843-276-9253 cell
Weichert Realtors Palmetto Coast
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