The “Longer Version” of “Short Sales” part 2…

“Short Sales” can be difficult to complete and are quite confusing for buyers and sellers…Here are 10 important points for you to understand:

1.] All people on the title must sign the sellers package.
2.] A hardship must be demonstrated for the lender to accept a “Short Sale” package.

3.] Once you get your notice of default, you have a limited amount of time before it goes to a trustee sale. In Nevada it is 3 months and 20 day after the notice of default was filed,then the trustee commences usually within 30 days after that period.

4.] A “Short Sale” is simply another workout option similarly to a loan modification or a forbearance.

5.] If you are in bankruptcy, it will delay selling your home and you will need the courts approval.

6.] You typically must be behind on your payments to qualify for a “Short Sale”, as this demonstrates hardship.

7.] It is a good idea to seek the counsel of a qualified real estate attorney and/or a CPA to understand any legal or tax ramifications.

8.] Make sure your real estate agent is aware of any liens of any kind against the property. The more liens against the property, the more difficult it will be to sell the property.

9.] Make sure you keep your HOA dues paid as they are in first position even over your mortgage.

10.] Keep your property looking good. This will help sell your home faster.

Understanding the ins and outs of “Short Sales” makes your decision easier and more Empowering. It is also important to be careful and choose the best real estate agent to represent you. We will discuss this in our next post…Be Empowered.

We are in the midst of the worst mortgage and real estate crisis since the “Great Depression” of the 1930’s. Real estate values have dropped dramatically, and in some areas it has caused unemployment to rise to levels approaching 10%. This dramatic drop in value coupled with the slowing economy and the jobless rate rising, has made it impossible for many homeowners to stay in their homes. These challenges have forced homeowners to sell. When, due to market conditions, their house does not sell and they cannot afford the payments any longer, they must look at options such as Short Sale, Foreclosure, or Deed-In-Lieu Of Foreclosure.

Not all homes that are in default go completely to foreclosure. Many will sell prior to the notice of default being finalized. Short Sales and Foreclosures are attractive to home buyers and investors because they want to purchase a home that is below market value. Sometimes the seller who is in default and the buyer who is looking to purchase a distressed property can negotiate out a transaction that works for both. It is then a “Win-Win” for both parties.

Buying and selling distressed properties is a complicated and often daunting task. Even though sellers are upside down and not in a good negotiating position, they still have rights. You should always seek the advise of a qualified real estate agent, who is well versed in short sales and REO properties. Agents who are experts in these areas will help you avoid many of the pitfalls of Short Sales and Foreclosures. I also recommended that if you have any questions you do not feel are answered adequately by your RE agent, seek the advice of a qualified RE attorney.

As we further discuss this important topic we will review four points;

1.] The Basics of Buying and Selling Short Sales and Foreclosures
2.] How To Do a Short Sale
3.] Stopping the Foreclosure Process
4.] Foreclosure and Short Sales Taxes…Do You Have a Liability?

Watch for daily updates and discussions on this important topic.  There are alternatives.  There are solutions.  We have teams of real estate professionals who can assist you with the short sale or foreclosure transaction.