I get asked several times a day about the real estate industry: Are things getting better? Are property values...
WHAT IS A SHORT SALE? Short Sales Explained
WHAT IS A SHORT SALE
Short Sales Explained
BY RICK BEAUDIN--REALTOR RE/MAX PLATINUM
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I, and some other realtors hold the CDPE® Designation and can identify all possible options and, when possible, assist in the quick execution of a short sale transaction (although short sales have known to take a long time). It is not recommended to try and short sale your property with someone who has not had the proper training; it could result in you being forced thru the whole foreclosure process.
Lenders often participate because they can often get more and save some legal expenses with the property not going into full fullclosure. Homeowners leave their houses in better condition because they are cooperating with a short sale. Buyers can often get a great deal if they are willing to wait.
If you have questions or feel you may qualify for a short sale, contact a CDPE agent for a free consultation.
Understanding your options now could mean all the difference in the world!
RICK BEAUDIN
"THE PINCKNEY PIRATE"
RE/MAX PLATINUM
810-844-2685
CELL 810-533-4343
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About Rick Beaudin
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E-mail me at rbeaudin@remax.net
When you are buying or selling property in today’s real estate market, it’s important to have confidence in your real estate professional. Rick’s commitment as your local REALTOR® is to provide you with the specialized real estate service you deserve.
Rick has two daughters who are Pinckney High School graduates. Andrea graduated from Northwood University in Midland, and works for Rick part-time, as well as at H&R Block in Novi. Rachel is a cosmetologist at Salon Silhouettes in Brighton.
Rick went from proud parent to the professional “Pinckney Pirate” Realtor after he began dressing as a pirate to help raise money for the Pinckney Community Schools District. He wears a pirate hat equipped with a fake, long, black hair to high school football and basketball games to sell 50/50 raffle tickets. He began branding himself and establishing a marketing program based on the Pinckney Pirate theme. He can also be seen as the Pinckney Pirate at many local events, like parades, festivals and expo shows.
Rick has also been active in the Pinckney Lakeland Hamburg Hell Chamber of Commerce, serving as the organization’s president from 2002-2007.
Of all his volunteer work, Rick is most passionate about the American Cancer Society. He also serves on the organization’s committee for the Brighton Relay for Life, giving team presentations and recruiting teams.
Just a few years ago, Rick was part of the “Ms. Relay” contest in which he reports looking “stunning” in a red dress; long, blonde locks; high heels and all. He’s also served as emcee for the Making Strides Against Breast Cancer walks in Howell and Ann Arbor.
In recognition of the wonderful example he’s set for his colleagues, Rick was the first-ever recipient of the Livingston Association of Realtors “Volunteer of the Year” award.
Along with local and community involvement, Rick also volunteers within his industry. He plans “After Hours” events at different local restaurant to bring together agents from all of the different local real estate companies. It provides an opportunity for open communication and discussion about the local market conditions.
Rick is single and lives on Zukey Lake. True to his community roots, he’s organized many singles activities in the area.
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