Benefits of a Short Sale for Seller's

There are numerous benefits to the sellers, some benefits include:

Won’t affect credit score as much as a foreclosure. When the seller’s only option is to sell a short and not got into foreclosure their credit score is effective as much as a foreclosure. Most seller’s who sell their home as a short sales can regain a good credit standing within 2 years where as a foreclosure your credit can be damage for up to 7 years.

No deficiency judgment. In most cases the banks will not have a deficiency judgment for the seller’s after a sale. The loan is satisfied and recorded as that.

Live in home. As a seller you can still stay in your home until the sale of your home. In a foreclosure the lender will order the sheriff to evict a person out of their home. If a homeowner has missed a payment and believe they have run into a hardship and are unable to work out anything with their lenders, seek a real estate professional trained in managing and selling short sale homes so their homes can be sold in a timely matter before they fall into foreclosure.

Morally correct. Most individuals want to be able to stay in their home and pay for their mortgage but hard times are upon them so they are unable to make the payments. If they can pay for the bills, they would.

Short sales are not easy transactions and everyone involved with a short sale should have patience and understanding of the process and educate their clients about the process. When there is better understanding of the process, all parties will benefit from the outcome.

Benefits of a Short Sale

I encourage all people falling behind on their mortgage to always first speak and try to work with their lender to see if they will allow a loan modification or provide other options so that a homeowner can keep their home. If the bank’s options are not favorable to the homeowner and they cannot afford the payments and their home is worth less than owed, the next best thing is to sell the home in a short sale instead of letting go into foreclosure.

There are many benefits that the homeowner can gain instead of letting the home fall into foreclosure. Please see below the benefits of a short sale versus a foreclosure.

Benefits of a Short Sale

I encourage all people falling behind on their mortgage to always first speak and try to work with their lender to see if they will allow a loan modification or provide other options so that a homeowner can keep their home. If the bank’s options are not favorable to the homeowner and they cannot afford the payments and their home is worth less than owed, the next best thing is to sell the home in a short sale instead of letting go into foreclosure.

There are many benefits that the homeowner can gain instead of letting the home fall into foreclosure. Please see below the benefits of a short sale versus a foreclosure.

Short Sales - Part I

We are seeing more and more short sales these days and it is now a common sight nowadays. I want to educate the public and all those interested, about the process and benefits of a short sale to all parties involved in the transaction.

For those of you not familiar with short sales, I will explain what a short sale is in common everyday terms. A short sale is when a homeowner is selling his/her property for less than what is owed on the mortgage with the approval from the lender to take the lesser amount to satisfy the loan. In most cases the homeowner does not have to pay what is owed. By this time, the homeowner usually has exhausted all their other options in trying keep their home and is force to sell their property as a short sale instead of falling into foreclosure. I will explain and go into further details about the benefits of a short sale compare to a foreclosure later in another blog.

In order for a short sale to occur two things must occur: the home must be under contract (have a purchase agreement) and the lender must accept that discounted payoff amount.

Short Sales, Short Sales, and more Short Sales

My next few blogs, I will concentrate on everything related to short sales from what a short sale is to its benefits and reason behind it. Short sales are here to stay…at least a while longer. If you have any questions please do let me know and add some comments. Till then, I am going to eat, breath, sleep, and live with everything related to short sales. So check back often to learn everything you need about short sales.

Ray Singhal earns the prestigious CDPE Designation

Ray Singhal with Coldwell Banker Burnet (651) 398 - 6261 Ray@TheSinghalTeam.com has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
Hundreds of homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales. It is so rewarding to be able to help sellers save their homes from foreclosure.”
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.
Ray Singhal with Coldwell Banker Burnet (651) 398 - 6261 Ray@TheSinghalTeam.com

If its working...why stop?

For first time home buyer's the $8000 tax credit will end on November 30. The tax credit, many believe is what is driving home sales and helping to stabilize home prices. If this is one of the driving factors, why stop the credit on November 30. Let the credit continue onto next year, we have just only begun seeing the real positive changes in the market this summer.

The National Associations of Realtors is fighting for this continuation of the tax credit and many other items at this very moment in Congress. Some of the items NAR hopes to improve and what Congress to address:
• The lack of liquidity in the jumbo mortgage market;
• Tight credit in the commercial real estate market;
• The Home Valuation Code of Conduct’s unintended side effects that are hindering sales;
• Increased funding to help FHA upgrade their technology and for Congress to ensure that funding be included in the final version of the FY2010 appropriation for HUD;
• Administration incentives and uniform procedures for speeding short sales under a new Foreclosure Alternative Program; and
• The potential for significant spikes in interest rates or disruptions to the flow of mortgage capital as the Federal Reserve unwinds the mortgage-backed securities purchase program to ensure that this does not happen.

If Congress listens and addresses those issues for 2010, look for a great change.