Realtor®
Did you purchase or refinance at the top of the market in Loudoun County?
A short sale begins with a seller who wants to sell his home for less than what is owed on the mortgage. For example, let’s say you bought your home in 2005 for $600,000. You realize all the homes around you are now selling for in the $400,000 range. There is no possible way you can get your home sold at your price and do not have the funds available to make up the difference. Should you simply walk away, claim bankruptcy, or be foreclosed? A short sale becomes a better option than a foreclosure or bankruptcy since its consequences tend to be less severe than the other two. Under a Short Sale, the lenders accepts the $400,000 sale of your home as payment in full. But, not all lenders will accept a Short Sale. That is why is is extremely important you work with a company who knows how to negotiate with the various lenders, understands each lender’s guidelines, and has a proven track record with Short Sales. I have teamed up with The Platinum Group Services to help me provide the expertise you need to get the contract accepted by your lender. Short sales become a better option for everyone. They are less expensive for the lender; but it can be a very lengthy process for everyone involved. The foreclosure process is more expensive for the lender and they are now realizing that short sales may be a better choice. Foreclosure is the last resort for the lender. One very important fact: seller must know going in that there are no guarantees what the bank will do. There are thousands of different lenders out there that you’re dealing with short sales and they ALL work differently. It’s very important to work with a Realtor that is working short sales every day because they are more familiar with what the banks are looking for. The biggest part of the negotiation is on the DEFICIENCY JUDGEMENT. A DEFICIENCY JUDGEMENT is a judgment lien against a debtor/borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. If a property sells for less than what’s owed on it the lender may release the property so it can be sold but the bank can come after the seller for what is not paid off. This is the most important reason for working with someone who has experience with short sales. On your behalf, complete release is negotiated without a deficiency judgment to the seller.
New HAFA Short Sale Guidlines are here! Thank goodness the U.S.Treasury is now focusing some attention on making short sales shorter. The months of waiting for short sale approvals have homeowners, Realtors, and Buyers at their wits end. 90% fo short sales do not get to close simply because of the waiting game and buyers become frustrated and walk away! Lenders are too overloaded to keep up with requests and do not have their systems in place to handle all the requests and calls. A five- six month wait is the norm and is totally UNACCEPTABLE. Hopefully the new program, "Home Affordable Foreclosure Alternative Program" or "HAFA" should help. Did you purchase or refinance at the top of the market in Loudoun County?
Call me for a confidential, no obligation consultation to see if a Short Sale can work for you. Email me at Tanya.Spotts@LNF.com or call 703-618-1218.
WHAT IS A SHORT SALE? How will it impact my credit? |
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