Facing Foreclosure? Are you concerned about being able to make your payments in the future? In today's real estate market with property values still being down we have the resources and experience to help you. We have an in-house certified short sale expert and have been very successful helping many homeowners avoid Foreclosure.
Contact Laura Staude Flood Today for more information.
What you need to know:
What is a Short Sale? A short sale is a sale of real estate in which the proceeds from selling the property do not fully payoff the exsisting loan and the lender accepts a discounted payoff of the loan. Short sale agreements do not necessarily release borrowers from their obligations to repay the loans, unless specifically agreed on between all parties.
Why a Short Sale? A short sale is often used as an alternative to foreclosure because it lessens additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less in a short sale rather than from a foreclosure, both often result in a negative credit report against the property owner.
Is a Short Sale right for me? Most creditors require the borrower to prove they have an economic or financial hardship preventing them from being able to pay the mortgage. Creditors who hold liens against the real estate will need to approve individual applications for a short sale if the property owner is asking for them to take less than what is owed. These creditors may include primary mortgages, junior lien holders-such as second mortgages, home equity lines of credit (HELOC) lenders, home owners association HOA (special assessment liens) etc.
Is a Short Sale easy to do? No: Most large creditors have special loss mitigation departments that evaluate borrowers' applications for short sale approval. Often creditors use pre-determined criteria for approving the borrowers and the terms of the sale of the properties. Part of this process typically includes the creditor(s) determining the current market value of the real estate by obtaining an independent evaluation of the property with an appraisal, a Broker's Price Opinion, or a broker opinion of value (BOV). One of the most important aspects for the borrower in this process is putting together a proper real estate short sale package including hardship letter explaining why a short sale is needed.
Can I do a short sale even if I am not behind on my mortgage payments? Depending on each creditor's policy and the type of loan, creditors may accept applications from borrowers even if the borrower is not in default with their payments.
How long is the process of a short sale? Many creditors have become proficient at processing short sales applications; however, it can still take several months for the process from start to finish, often requiring multiple levels of approval. It is possible for any one lien holder to prevent a short sale by refusing to agree to negotiate a reduction in their payoff to release their lien. Short sales can have a high risk of failure from inability to obtain agreement from all parties or they might not be approved in time to prevent a scheduled foreclosure date.
Do I need to hire person with a special license for a short sale? In many states, including Wisconsin, real estate brokers, who handle a short sale applications as part of their real estate services, are often allowed to do so without additional licensing or insurance. However; it is highly recommended that you hire a Real Estate Broker with experience with Short Sales.
Will a short sale affect my credit? A short sale negotiation resulting in a reduction of the amount a borrower owes towards a debt acts as a type of settlement or renegotiation of a borrower's debt. Should the creditor report the debt reduction to credit reporting agencies, it can negatively affect a person's credit report. Despite significant misreporting on the topic, damage to one's credit due to a short sale is really no different than that of a foreclosure. After a short sale, borrowers may find it difficult to obtain a new mortgage as lender's guidelines might reject lending to a borrower who has obtained a short sale in the past.
Why choose Laura Staude Flood and Century 21 Crossroads as my agent/broker? When looking to avoid foreclosure by way of a short sale, you want someone with experience dealing with lenders and short sales in general. Laura has nearly 20 years of real estate experience. Combine her experience with an in-office short sale specialist and you're sure to have the right person and company in your corner when trying to avoid foreclosure.
For more information Contact Laura Staude Flood!