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Short Sale Foreclosure

Short sale foreclosure properties include residential homes, commercial buildings or raw land that has been returned to the bank because the property owner became delinquent on their mortgage note.

Short sale foreclosure is also an option given to borrowers allowing them to sell their property for less than they owe on their mortgage loan. Short sales can be a saving grace to borrowers unable to refinance or obtain a loan modification. The process generally takes four o six months to complete, but allows the borrower to walk away from their home without owing further monies.

Some lenders hold borrowers responsible for the difference between the listing price and loan balance. If the borrower is unable to pay this amount (and most cannot), lenders issue a deficiency judgment. Oftentimes, the short sale balance can amount to several thousand dollars; making it nearly impossible for borrowers to repay the debt.

Deficiency judgments remain on credit reports until the debt is paid in full. They can prevent borrowers from obtaining any type of credit, let alone qualifying for a new mortgage note once their financial situation improves.

Foreclosure remains on credit reports for up to ten years. When banks repossess real estate, the properties are placed for sale through public action. Unless borrowers obtain a deed in lieu of foreclosure, mortgage lenders can sue the homeowner for the difference between the loan balance and auction sale price. This situation is as detrimental to borrowers' credit as deficiency judgments.

Short sales will affect credit ratings, but are not as detrimental as foreclosure. If lenders accept the purchase price as payment in full, borrowers may qualify for a mortgage loan within two years.

Many real estate investors are attracted to short sale properties because they are generally sold below market value. Homeowners facing foreclosure would do well by seeking out investors willing to buy their property.

In order to obtain short sale approval, borrowers are required to locate a buyer within a specific time frame; usually 60 to 90 days. The property must be listed through a realtor. In many instances, realtors are forced to forego their commission in order to complete the deal.

By law, realtors are required to place the seller's best interests above their own. While most realtors live by that pledge, few want to work for free. Additionally, short sales require a tremendous amount of work. For these reasons, it can be difficult to locate a realtor willing to list short sale foreclosure property.

Selling short sale property to a real estate investor eliminates the need for a realtor and improves borrowers' chance of obtaining approval to sell their home for less than is owed. In fact, some banks require homeowners to have a buyer lined up before they will even consider entering into a short sale contract.

Selling short sale foreclosure homes to investors allows borrowers to save time and money. Banks can expedite the transaction because there is no need to provide time to locate a buyer. Investors benefit because they purchase property below market value. When properly constructed, short sales offer a win-win to all parties involved.

At Simon Volkov, we have been involved in buying and selling real estate for several years. When the housing crisis occurred and short sales became the predominant choice, we turned our focus toward helping distressed homeowners obtain short sale approval.

We offer a unique program where we work one-on-one with borrowers and lenders to stop foreclosure. Due to the complexity of short sales, we are only able to help a limited number of people. Once we reach maximum capacity, we will place applicants on a waiting list. Unfortunately, that might be too little, too late.

If you need to sell your house fast and want to save your credit, don't waste another moment. Enter information about your property using the "we buy houses" form. Don't let someone steal your opportunity to relieve your heavy financial burden. Enter your info now and take the first step toward your future.

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Published on June 26, 2009 at 03:34 AM

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