Obtaining real estate short sale negotiation assistance from a professional consultant can save you a lot of stress and earn you loads of money. There are hundreds of thousands of homes currently in the United States that have been foreclosed on, and this can mean a huge opportunity for investors to acquire properties for massive savings. The downturned real estate market is a wide open playground for savvy investors, especially those who have some time to wait until the markets stabilize again.
The short sale process can be daunting and complicated for those who are not familiar with it. A short sale is quite simply when the lender of a mortgage loan agrees to provide a discount on the balance due. The short sale negotiation process is carried out with the loss mitigation department of the lender. The homeowner sells the property for less than the balance due on the loan and turns over all proceeds to the lender. In almost every case, this is not a full settlement between the homeowner and the lender. Almost always, there still exist a balance of deficiency owed to the lender from the homeowner. The lender is responsible for the final decision as to whether to allow the short sale or not and there are no regulatory agencies that govern these types of transactions.
For that reason, skillful negotiation tactics are necessary. From both the standpoint of the homeowner and the buyer, it is highly-advantageous to illicit the assistance of a professional short sale negotiator. Short sales generally occur as an alternative to foreclosure. Foreclosure rates are at an alarming all-time high currently and state governments and lenders alike are scrambling to find ways to lower them. In essence, the lender will allow a short sale if it believes that it will take less of a loss by allowing the short sale than it will to enter foreclosure proceedings and auction the property. In fact, most short sales occur only after the Notice of Default has been filed by the lender.
Advantages of a short sale for the homeowner include:
A lessened negative impact on their credit score than a foreclosure would yield;
Maintaining partial control of deficient finances;
Time savings as compared to foreclosure;
The fact that a short sale is a type of settlement as compared to a seizure of the property;
Lessened embarrassment in the form of newspaper ads and postings of legal notices;
Negotiating a real estate short sale should be handled by a professional to ensure that the homeowner and/or buyer are represented fairly and presented with all of their rights throughout the process. Lending organizations are struggling at present and it is not their intention to offer anything more than they absolutely have to. If you are unfamiliar with the short sale process, as most homeowners are, then you will benefit greatly from obtaining short sale negotiation assistance from a seasoned professional.
To learn more about how short sale negotiations are handled, please visit us at Stop Foreclosure Help Today.
Igor Mosyak holds the MBA and BS in International Business and Marketing from University of Maryland at College Park. Igor has an extensive knowledge in marketing and advertising from his previous experience and current career in the world of International and Domestic Real Estate activities. Igor Mosyak is founder of www.StopForeclosureHelpToday.com an organization dedicated to helping homeowners facing foreclosure. We offer a wealth of information on the whole foreclosure process and provide visitors of our website with FREE e-Book on “Stopping Foreclosure-Understanding Your Options”.
Real estate short sale references a legal agreement offered by banks to borrowers in danger of losing their home to foreclosure. When lenders enter into short sale transactions they agree to accept less than this owed on the mortgage note. Short selling can offer borrowers short-term financial relief, but this option might not be in their best interest.
Obtaining real estate short sale approval is a complicated and lengthy process. Borrowers who have entered into foreclosure are ineligible for short selling, as are homeowners with accrued home equity and those who own financial investments that could be sold to cure mortgage delinquencies.
Borrowers who are 31 days delinquent on their home loan should contact their bank’s loss mitigation department immediately. A loss mitigator is assigned to negotiate and act as mediators between homeowners and their lender. Their primary duty is to keep bank losses at a minimum by negotiating the best deal for the lender.
Bank loss mitigators are often overworked due to the massive influx of foreclosures. It usually takes several weeks before homeowners receive a return phone call from the bank. Instead of allowing the mortgage loan to become further delinquent, homeowners must be persistent in contacting their lender.
When homeowners are unable to make direct contact with their bank loss mitigator, they should send a registered letter explaining the circumstances that caused them to fall behind and request the option to short sell. Make certain to include a return receipt which requires a signature from the bank. Return receipts provide evidence the letter was received by the lending institution.
Each bank establishes their short sale protocol; therefore the process will vary by lender. Most banks require borrowers to provide a record of finances, tax returns, employment history and pay records, detailed list of income and expenses, and a short sale hardship letter.
Most mortgage lenders require borrowers have a prequalified buyer in place before granting short sale approval. Some lenders allow borrower’s time to list their property through a realtor. In rare circumstances, lenders allow borrowers to place their home on the market as for sale by owner real estate.
Realtors are generally not enthusiastic about listing short sale properties because they must reduce commission rates to expedite the sale. Short selling real estate requires extra paperwork and can become a tedious process. Locating a real estate agent to list and expedite the sale can be challenging.
Entering into short sale negotiations with lenders can be an intimidating process for borrowers unfamiliar with legal contracts and real estate terminology. It is best to retain the services of a real estate attorney or short sale specialist. Although this can be an added expense, hiring professionals to negotiate short sale transactions can save money in the long run.
It is crucial to understand which type of short sale is offered through your lender. Many banks issues deficiency judgments and hold borrowers responsible for repayment of the difference between the short sale price and loan balance. Deficiency judgments remain on credit reports until paid in full.
Some banks enter into ‘Payment in Full’ agreements and accept the short sale price full payment toward the outstanding home loan. Payment in full short sales allows borrowers to walk away from their home without owing additional money.
Simon Volkov is a California private investor who specializes in real estate short sale transactions. If you have received short sale approval and need a buyer for your property, or if you require assistance negotiating with your lender, submit information about your property via the ‘we buy houses’ form at www.SimonVolkov.com. Upon receipt of your information, Simon will contact you to discuss available options.
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In 1913 the Turkish government killed some of my relatives and took all my family lands and real estate properties in the village of Enidjia located on the road from Edirne to Kirklareli. Thousands of Bulgarians who refused to give away their Christian Religion beleives and refused to be converted into Muslims were either killed or forced by arms to leave their home lands around Istanbul. That was the destiny of almost one milion christians in 1913 only from that part of the world. If the world had done something to stop that genocide, maybe the Armenian genocide in 1915 wouldn’t have followed, nor the ocupation of Cyprus. Nor the Kurds genocide.
Please God Can anyone help restore the human rights in Turkie. I’m searching for support in my efords for Justice.
We have been in our home for 14 months and have made payments regularly. But now my husbands company is falling apart and we fear we better bail quick. My husband may have found a job in Texas, but we won’t know for sure until next week. If we stop paying our mortgage payment now, we should have about thirty days to move out. If he doesn’t get the job we could get caught up on our payment when we get back. It will only be a week late. We are walking away from our down payment, but he has no work in this town. What should I expect if we just stop paying? Should I call the owner of the REC and let him know we have to move? Would he or could he get the last payment out of us? He is keeping our 15K. We were trying to get a 30 year mort because this REC is up in 2010. But so far we keep hitting road blocks. Maybe it is best to walk away from a REC than to kill our credit and walk away from a mort? The house appraised for 15k less than the original asking price. So we have no equity to help sell it. It will cost us 10-15k to sell it. I don’t want to lose any more money.
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