Considering a Short Sale… Read This Before You Act…!

If you are a distressed homeowner facing foreclosure, there are several ways of reaching a compromise with your lender. One of these ways is the Short Sale.
 

What is a "Short Sale"?
 

When a lender agrees to let the homeowner sell their home for a net sales price that is less than what the homeowner owes their mortgage lender(s), it is considered a ‘Short Sale’.
 

Why Is a Short Sale More Desirable Than a Foreclosure?
 

The short sale prevents you from being foreclosed on and getting evicted from your home. Although a short sale reduces your credit report it is much less traumatic to your credit than a foreclosure would be. Typically, with a short sale on your record, you will not be able to get another loan for 2-3 years. With a foreclosure on your credit record, your ability to secure another loan could be affected for 5-7 years.
 

Why do Short Sales take so Long to be Approved by your Lender?
 

Because a short sale results in the lender not being able to collect some of the funds you owe them and the property which secured the loan, these transactions must be done with the full participation and agreement of the homeowner's lender(s) and any secondary lien holders.
 

Lenders are institutions, not people. They more often than not move at a snail's pace when considering and evaluating an owner’s request for a short sale. Short sales are more frequent in today’s declining market and many lenders are simply not staffed and do not have systems in place to handle the volume of short sale requests they receive.
 

You have all heard the stories of homeowners and agents trying for weeks just to get a short sale "package" to the ‘correct’ person in the lender’s loss mitigation department. Even when the package is in the hands of the right person, the bank may have some reason they disagree with the deal between the buyer and seller, the contents of the submitted package and may insist on inserting the bank's price increase, reduction in closing cost credits, or other major alteration of the terms of the deal. This is why it is critical that any homeowner considering a short sale, secure the services of a licensed Realtor experienced with short sales and Real Estate Company with a department that is specifically dedicated to process short sales. Each lender has their specific requirements and the person responsible for securing the short sale approval must know that lender’s process inside and out to be able to succeed.
 

What are Distressed Property Certifications so very Important?
 

Look for a Realtor with a Company that has one or more of these certifications:

• Certified Distressed Property Experts (CDPE)
• Short Sale and Foreclosure Resource (SFR)

These are nationally recognized certification organizations that train and educate Realtors on how help facilitate foreclosures and short sales for homeowners with distressed properties. Ref: FrontDoor.com 2/01/2008

For further information, contact:
Mike Jurca
248-961-2194 Cell

MJurca@remax.net
Short Sale and Foreclosure Resource (SFR)

www.MichaelJurca.com
www.MikeJurca.com - Senior's real Estate Seecialist (SRES)