Short Sale 101

People are always asking me to explain what a short sale is and if they should proceed in that direction when selling their home.  Like many other Realtors®, am adapting my services to better help many homeowners facing serious trouble and in some cases, foreclosure.

With the growing financial crisis, more and more people are experiencing heightened levels of stress and feeling out of control.  Many are stressed because they’ve experienced a job loss, severe illness, divorce, reduced income and too much debt.  I could go on and on, but most importantly, there is financial relief available . . . for free.   I can sell a property for an owner through a short-sale and eliminate the huge mortgage and property tax payments. As the seller, you pay no commissions, no attorney fees, and no transfer tax.

A short-sale is a sale of a real estate property in which the market value/sales price of the property is less than the combination of the balance owed (including any penalties, interest, fees, common charges in arrears, etc.) on a loan, plus all transaction expenses to sell the property (commissions, attorney fees, transfer taxes, etc.). In a short-sale, the bank or mortgage lender agrees to take less than the balance due on the mortgage to sell the house, as long as the seller is truly in an economic or financial hardship. Basically, a short-sale is a last hope for people looking to avoid foreclosure.  Home owners are hurting, and a short-sale – though it may be a difficult transaction – is a good option for sellers who may be headed toward foreclosure.

I like to use a hospital analogy when it comes to explaining a foreclosure vs. a short-sale.  When it comes to a foreclosure, it’s similar to comparing one’s credit score to an amputation – it’s as if one’s leg is being amputated.  The leg will grow back, but it will take over 10 years.  So with a foreclosure, your credit is impossible to repair in the short-term and in all likelihood, it will affect your employment and future employment for at least a decade.

With a short-sale, as far as credit rating is concerned, it is like an amputation that can be as small as a few fingers. And if handled properly, those fingers may grow back in as little as 2-3 years; definitely a huge difference.

Having recently completed a rigorous training course to become a Certified Distressed Property Expert, I have the proper tools, systems, insights and ‘tricks of the trade’ to successfully complete a short-sale transaction. This work is critically important to me, as I am able to provide homeowners who are in trouble with the guidance and advice they desperately need.

So if you or anyone you know is in financial distress, please call me; I can help you get qualified, get your home sold, and help you regain control of your life!

3 Responses to “Short Sale 101”

  1. Shortsales 101 – You can no longer ignore it « – Boise Idaho Real Estate Says:

    […] Short Sale 101 […]

  2. mildred Says:

    Wow! how interesting!

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