Coldwell Banker Premier Realty

Short Sale... A Savior?


If You Are Facing Foreclosure, a Short Sale Can Help With Damage Control
Posted: June 23, 2015 by Jesse Olive



Coldwell Banker Premier Realty recently spoke with Denise Eccher with Homeowner Relief Lawyers, LLC of Las Vegas, NV in order to help educate our readers about the benefits of short sales versus foreclosures. In that interview, we learned that foreclosures can be a crippling blow to anyone’s credit, taking into account that foreclosures automatically drop your credit score from 85 to 160 points for 7 years. These circumstances can essentially bar you from lending services and can reach as far as denying you for insurance applications in some instances. Even small lines of credit become nearly impossible to attain. In addition, many potential employers have begun to look into credit scores as part of candidate selection.

 

“What many do not realize is that the financial nightmare of a foreclosure can be averted with a short sale”, Denise explained. ”Short sales are a form of mortgage default that can keep your credit score far more in-tact than enduring a foreclosure’s long lasting effects.” Essentially, a short sale is a process in which a homeowner gets approval from their mortgage lender to “pay off” their loan with an amount less than the full balance. This process is often the best option for anyone struggling with mortgage payments that is on the path to defaulting on their mortgage and foreclosure.

 

Some criteria must be met in order to qualify for the short sale process. In order to go through a short sale the seller must prove a hardship.  There are many different types of hardship ranging from extreme financial issues to job transfer without the ability to sell the home for what is owed. People may think they “don’t qualify” for a short sale because they are not devastated financially. This simply is not true.  

 

The short sale process begins with the seller signing a listing agreement with a real estate agent and the mortgage lender’s approval of the potential short sale. Once a buyer surfaces and makes an offer the seller accepts, the seller’s mortgage lender must also accept this offer. With this approval and the sale’s conclusion, the seller is now free of their mortgage obligation.  With the help of competent attorneys, the legal obligation to pay the deficiency (the difference between the mortgage balance and the amount of the short sale), can be waived. 

 

“Navigating this complex process requires experienced real estate attorneys who can take on the short sale to benefit both the seller and the agent. Four out of five real estate agents choose to avoid short sales due to the immense amount of work involved in short sales in comparison to regular listings.”, said Denise. “HRL effectively turns a short sale into a regular listing for the agent by handling all of the document collection and negotiations to obtain approval. Once approval is received, the transaction can close in the same way as a traditional sale.”

 

“Agents will run into short sales while prospecting. Working together with HRL allows them to stay focused on their traditional sales while providing a great service to homeowners requiring the more intense process of short sale. One of the best benefits of helping a client during this difficult period of life is that these clients will send referrals – at least 2 from every short sale; and often many more. After a short sale seller moves on to the next chapter of life, they will typically come back to the agent in 2-3 years to buy a home again.  Short sales are a tremendous way to serve our community and help sellers transition out of these underwater homes while very effectively building a customer base.”

For more information contact Marc or Denise Eccher at 702-589-7520.

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