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Lenders and Government Agencies are making all efforts to help the sellers in today's market achieve their goal of selling their home. Short Sales have been implemented to help you, the seller, out of a situation that simply might be out of your control. Your Lenders are understanding and willing to help with a proper team in place. One unknown fact about Short Sales: You MUST be represented by a Licensed Brokerage to take part in this program. Please let us know how we can help you!
A short sale or short payoff occurs when a lender agrees to accept less than the outstanding loan amount to satisfy the seller’s loan. A short sale allows both the lender and the distressed property owner to avoid foreclosure by selling the property at a loss. Combined with the weak real estate market the following are common situations facing distressed sellers:
- Unexpected health issues resulting in difficulty making mortgage payments
- Lending rate increases on adjustable rate loans
- Divorce
- Over-extended borrower with multiple mortgages
- Job loss or transfer
Short Sales are more complicated and time consuming than an average real estate sale, making it important to retain an experienced Real Estate Broker to oversee and negotiate the transaction. A distressed seller initiates the short sale by contacting a licensed Real Estate Broker to draft a special contract and find a buyer at the current market price, sometimes as much as thirty percent less than the seller may have paid for the property. The seller’s Realtor must find a bona fide purchaser for the property at the current market value before the short sale offer can be submitted to the seller’s lender. Property Impressions works with sellers, buyers, and the buyer's Realtor to negotiate and draft sales contracts which include the conditions of the short sale.
Why Lenders Prefer Short Sales
Short sales are more beneficial to a lender than a foreclosure. Lenders prefer short sales because they are not in the business of managing and owning property and short sales are less expensive than completing the foreclosure process. Lenders accepting short sales receive a substantial percentage of the outstanding loan amount due without waiting for a time consuming foreclosure, and they are able to avoid foreclosure and maintenance fees. Property Impressions is a Real Estate Brokerage experienced in negotiating with lenders to obtain a timely short sale payoff that satisfies both the lender and the seller, often without damaging the seller’s credit rating.
Buyers Benefit from Short Sales
Buyers often save money purchasing a property in a short sale. Property Impressions represents buyers in short sales and will draft a sales contract to include closing costs and fees in the short sale payoff amount. The experienced title agents at Streamline Title Services, Inc. will prepare an initial draft settlement statement satisfying the needs of all the parties, which will be submitted to the lender for approval. Drawing on extensive real estate experience and careful planning Property Impressions will work to obtain the best possible lender payoff, resulting in a fair price and low costs for the buyer and satisfaction for the lender and seller.
For more information and facts on Short Sales, please contact our office at 954-444-8686 |
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