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Hello from Jeff Garthwait with Lakes Area Realty, Ask about the new HAFA program!
In these tough economic times, plenty of families have found themselves in difficult situations. Foreclosures are at an all time high, and many believe they have few options. I specialize in helping homeowners who owe more than the current market value of their home. I have expertise in negotiating away balances and successfully relocating families into their new and more affordable home. All this, with little or no cost to you. Your current lender will pay the commission to me, your selling agent. So why a short sale? Why not just let it foreclose? 4 main reasons. 4 good ones. 1. Save your credit. Begin the path of financial recovery NOW. Recovering from a short sale is much easier and takes much less time than recovering from a foreclosure. In fact current Fannie Mae guidelines say after just 2 years from a short sale you can get financing again. If you let your home foreclose you will wait 5-7 years. 2. Short sales can be done at little or no cost to you. Your lender will pay my commision, any back taxes, and all the normal closing costs. All I ask is that you pay my lakes Area Realty admin fee of $165 only AFTER your short sale closes. No fees up front. And if you just don't have the $165, I understand, times are tough. I will waive the fee. 3. Current and future employment. Think your current and future employers are not checking your credit report? Think again. A foreclosure could actually prevent you from getting a job. Don't let this happen to you. 4. HAFA.... Google it. The government is paying $3000 to homeowners who choose a short sale over a foreclosure.
The time to pick up the phone and call is NOW. I invite you to give me a call so we can discuss your options. The first step is ALWAYS the hardest. After you pick up the phone and call, I promise it will get easier.
Jeff
Below is a more technical definition of a short sale: A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. [1] In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation. A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from a Broker Price Opinion BPO (also known as a Broker Opinion of Value (BOV)) or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer. Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults.
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