Have you had your house on the market for a while now? Are you facing foreclosure?

You may be interested in a short sale.

Short Sale - When a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. 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 in full satisfaction of the dept. 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 influence are usually related to the current real estate climate and the individual borrower's financial situation. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Additionally, a short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing is nothing more than negotiating with lien holders a payoff for less than what they owed, or rather a sale of a dept, generally on a piece of real estate, short of the full dept amount.

A list price stated in the MLS system may not be a deliverable price. Multiple

offers may be presented to the lender for third-party approval. Negotiations may take months for approval, and all terms will be established by the lender.

Thinking of Selling Your Property

But Feel You Can't Because It's...

"UPSIDE DOWN?"

Many homeowners need to sell their home, but can't because they owe close to or more against their property than its current value. If this situation applies to you, this information may help.

A major problem people are facing is the declining value of housing, which I believe is indicative of "over supply" and poor economic conditions. A home that 2 years ago sold for $250,000 is now selling for much less. People aren't making enough money to pay off their existing mortgage.  If you qualify for the short sale assistance program, your financial institution may agree to absorb the loss without any contribution from you either now or in the future.

In today's unsettled economic climate, many financial institutions are still facing an increasing number of delinquencies among homeowners, creating an unprecedented number of foreclosures. The banking industry's belief is that many of these costly foreclosure actions could be avoided (to benefit of homeowner's as well as the banking industry) by an increased awareness and usage of foreclosure prevention alternatives such as the "Short Sale Assistance" program.

Consider the costs associated with the foreclosure process (Attorney fee's, property preservation costs, delinquent payments, the eviction process, repossession of the property, selling the property once foreclosing, etc.) Most foreclosures result in losses for everyone involved - the borrower, the financial institution, the investor, and the mortgage insurance company. By providing an alternative to foreclosure, the short sale programs benefit both the bank and the homeowner. Homeowners experiencing hardship can be spared the painful ordeal of foreclosure and in some situations, may be able to keep their home. Banks save money each time a short sale is completed because of the reduced costs involved when compared to the costly foreclosure process.

Banks save money each time a short sale is completed because of the reduced costs involved when compared to the costly foreclosure process.

WHAT CAN A SHORT SALE DO FOR YOU?

·                     Preserve credit standing

·                     Allow you to sell your home with no out-of-pocket expense

·                     Eliminate negative cash flow

·                     May reduce tax liability

·                     Avoid potential foreclosure

·                     Release of mortgage obligation

·                     Avoid possible bankruptcy

·                     Relieves financial/emotional stress

 Negotiating a short sale agreement is becoming more complicated than ever. These transactions are technical, time consuming and require extensive financial documentation.

SOUNDS GREAT, BUT CAN I QUALIFY FOR "THE PROGRAM"?

Do any of the following apply to you?

·                     Divorce

·                     Filed bankruptcy

·                     Death in the family

·                     Delinquent on mortgage payments

·                     Dispute between owners

·                     Increasing credit card debt

·                     Robbing Peter to pay Paul

·                     Loss of employment or drop in income

·                     Assumed liability due to someone else's action

·                     Lifestyle change

·                     Job relocation

 If not, don't be discouraged!

These are just a few of the circumstances that may qualify you for this type of assistance.

I can help you get your financial documentation in order and handle all facets of negotiation with your bank. A short sale allows you to exercise damage control and help preserve your credit. I will handle all of the real estate listing, selling, escrow, etc. and the best part is that the bank pays all the fees! One of the conditions of approval on your short sale is that the bank pays commissions, title insurance, escrow fees, termite work, etc.

TERMS TO BE FAMILAR WITH

DEFAULT:

The failure of a borrower to make a mortgage payment when due or to

fulfill other terms of a loan agreement.

DELINQUENCY:

A loan in which a payment is at least one month overdue, but which has not yet been declared by the lender to be in default.

DEFICIENCY JUDGMENT:

A personal judgment created by court decree for the difference between the amount of the mortgage indebtedness and any lesser amount recovered from the foreclosure sale. The judgment is against any person who is liable for the mortgage debt.

DUE ON SALE CLAUSE:

A clause in a conventional mortgage that allows the lender to demand full payment of the outstanding balance when the property is sold. This is generally triggered when an unauthorized transfer of title takes place.

FORBEARANCE:

The act of postponing legal action when a mortgage is in arrears.

SPECIAL FORBEARANCE:

A relief provision that permits a period of reduced or suspended payments, followed by another period of larger than normal payments, to enable the homeowner to cure a delinquency.

FORECLOSURE:

A legal procedure permitting a creditor to take possession of and sell property that is mortgaged as security for a defaulted loan.

SHORT SALE ASSISTANCE:

A procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed in order to avoid foreclosure and preserve their credit rating.

If you would like further information on this topic or like to schedule a no-obligation interview, please call me at 321-626-6615 or e-mail me at SueBackiel@cfl.rr.com