Short Sale Foreclosure
A short sale foreclosure refers to real estate that is either in preforeclosure, foreclosure, or has been repossessed by the bank. Preforeclosure is oftentimes referred to as Lis Pendens. This stage of foreclosure allows borrowers to either modify their loan to become current or enter into a short sale agreement with their lender.
Short sale foreclosure is the last chance for homeowners to stop foreclosure. It is a complex process that involves selling real estate for less than is owed on the mortgage note. Borrowers must obtain short sale approval through their lender's loss mitigation department. Few people can engage in shorts sales on their own. Most require assistance from a bank loss mitigator, real estate attorney or short sale specialist.
When banks foreclose on properties, they are first offered for sale through public auction. When no acceptable bids on placed, the real estate is given back to the bank. Lenders become the property owner and are responsible for maintaining the real estate until it is sold.
Banks are in business to make money, not manage properties. For this reason they are willing to accept less and cut their losses. Foreclosure is a time-consuming and costly process. Although lenders take a financial loss, short sales can be completed in three to four months. Foreclosures can drag out for 12 to 18 months.
Bank owned homes are oftentimes listed on lender's websites and made available to the public for purchase. Some lenders list short sale properties through local realtors. Foreclosure, bank owned and short sale real estate is generally sold below market value. However, many of these properties require extensive repairs because they have been neglected for years.
When banks grant short sale approval, borrowers are given a small window of opportunity to sell their property. Some lenders require borrowers to have a qualified buyer in place before allowing them to enter into a short sale agreement. In today's real estate market this can be a daunting task.
Mortgage lenders usually require short sale properties to be sold through a realtor. The problem with this is short sales require a tremendous amount of work. In some instances, realtors must forego their commission in order to close the deal. Few people want to work for free, so locating a realtor to assist with a short sale can be challenging.
At Simon Volkov, we specialize in helping homeowners obtain short sale approval. Our team has engaged in hundreds of successful short sale transactions. At present, our success rate is 80-percent. Considering the average rate of short sale approval rate is 10-percent, we are proud of our accomplishments.
What sets us apart from others is we become the buyer of your property. When borrowers have a buyer in place, their chance of obtaining short sale approval is increased ten-fold. We work directly with you and your lender throughout the process.
If you are facing foreclosure, time is running out. Foreclosure is not a pleasant experience. Not only does it ruin your credit, it takes an emotional toll. I have yet to speak with a homeowner who lost their home to foreclosure and was proud of it. It's embarrassing and makes most people feel like a complete failure; even if the circumstances that caused it were unavoidable.
Although short sales will adversely affect your credit, it is not quite as detrimental as foreclosure. In most cases, borrowers can obtain a mortgage loan within two years after a short sale. With foreclosure, borrowers won't be able to obtain a mortgage loan for as long as ten years.
We are currently accepting a limited number of homeowners who need to sell their house quickly. If your property meets our qualifications, we will negotiate with your lender and buy your house if short sale approval is granted.
There is no fee or further obligation. All that is required at this time is to provide information about your property via the "we buy houses" form. Upon receipt of your information one of our specialists will contact you.
In the meantime, feel free to browse our extensive short sale foreclosure article library. Packed with hundreds of articles, our library is one of the most comprehensive and thorough. Our goal is to become your trusted source for real estate and investment information.