A short sale is when the bank is willing to accept less than the actual payoff on the loan. Why would a mortgage company do that? A foreclosure is a lose, lose situation for the mortgage company as they lose revenue, the mortgage insurance company loses premiums and pays a claim, the investor is not collecting principal or interest, there is potential damage to the property and lower property values have a negative effect on the real estate market. But, the homeowner has the most to lose with foreclosure on your credit record for up to 7 years which can be viewed negatively by lenders, employers, and insurance companies.
Therefore, a short sale can actually be a win, win for everyone. The mortgage company reduces their losses, the mortgage insurer minimizes claim payment, and additional damage to the property is avoided during a foreclosure. The real estate market does not experience as much negative stigma, therefore property values do not go lower. And, the homeowner can successfully sell their home and not have a foreclosure on record.
First of all, any homeowner who is experiencing difficulty in making the monthly payments should call a reputable Realtor experienced in negotiating short sales. There is an art to it, to say the least. The Realtor will discuss the current market value and the amount necessary to payoff your mortgage. The most important action should be to actively list the home on the market for sale. If the homeowner owes more than the current market value, the experienced Realtor will contact the lender’s loss mitigation department and assist the homeowner will all the documentation necessary to facilitate a short sale. One of the most important documents being the hardship letter, which can make or break the deal. Other documents would include 2 years tax returns, 2 months pay stubs, 2 months bank statements, and the most current mortgage statement.
One very important factor that most lenders do not tell you, is that the homeowner is liable for any deficiency in the short sale. But, a Realtor experienced in negotiating short sales can often times negotiate with the lender for the deficiency judgment and 1099 to be waived, reduced or ask for an interest free promissory note.
Lastly, to all homeowners it is never too late or too early. The most important asset you have is your home. Please give us a call to get your home on the market for sale and avoid foreclosure. And, you may know of someone in that situation, tell them to contact us immediately at firstname.lastname@example.org.
Bakr Wayne and Associates are life long Top Realtors in Wilmington, NC tjat bring local knowledge and experience to our valued clients. With our decades of experience in the Wilmington, NC real estate market, we can greatly benefit our buyer clients in choosing the perfect Wilmington NC neighborhood, in the negotiation process, obtain the best financing, obtain a home inspection and negotiate the repairs, and assist with the final closing preparations. Our sellers can also reap the rewards of a successful and aggressive Realtor that is always eager to sell their home at a record pace and for the most money possible. We have a long track record of selling homes quickly and exposes our listings on over 100 websites.
We have earned numerous awards for our outstanding production over the years including the prestigious Coldwell Banker President’s Elite Club.
Baker Wayne and Associates can be contacted at email@example.com or www.cbbaker.com.