In this economy, short sales have become all too common. A short sale is an arrangement between the owner of a home and the lender, that the lender will accept an offer for less than the total amount needed to pay off the loan. The difference between the amount owed and what the bank collects on the short sale is the deficiency. In a short sale transaction, someone – either the seller or the bank – is “shorted” and becomes responsible for the deficiency. The extremely complex short sale process calls for risk management, which boils down to making informed decisions and consulting with realtors specifically designated to handle short sales.
While a short sale may be viable for some distressed homeowners facing foreclosure, a foreclosure is not a short sale. In a foreclosure, the ownership of the home reverts to the bank because the owner is in default on the loan. The bank repossesses and sells the home, then pursues the homeowner for the deficiency. Such legal action is often unworkable for a homeowner experiencing long-term unemployment or another hardship that caused the foreclosure in the first place. Many people in foreclosure eventually end up filing bankruptcy to resolve the situation, especially if they have overwhelming credit card debt—bankruptcy court caseloads are overflowing nationwide as a result. Whether or not the homeowner declares bankruptcy, their credit is compromised for a good while. People do bounce back from foreclosure and bankruptcy, but it’s worth consulting with an experienced short sale realtor to see if short-selling is an option for you. Where viable, short selling offers relief and, some experts say, a softer impact on a homeowner’s credit.
Making the best of a tough situation
It is in your best interest if you find yourself contemplating foreclosure or short sale, to find a specially trained and designated agent who will manage the considerable risk inherent in the minefield that is the short sale process. You need every advantage, including seeking legal council, to make sure that the lender assumes the deficiency—not you—and that you are protected from risk of short- or long-term legal action. You do not want a call from an attorney for the lender five years down the road!
Short sale experts at Coldwell Banker Daisy Mountain Real Estate
At Coldwell Banker Daisy Mountain in Anthem, AZ, short sale transactions make up about 50% our total listing inventory. Doreen Drew and Amy Wylie are very familiar with this process, having worked with these transactions since 2007, and they close over 90% of their short sale listings--an extremely high success rate. Both Doreen and Amy have earned many short-sale specific designations, including Certified Short Sale Negotiator (CSSN) and Short Sale & Foreclosure Resource Certified (SFR), and most recently…
The cutting-edge rCRMS designation
In an intense, six-day course, agents learn from legal experts, attorneys actively involved in real estate litigation. Instructors share real-life examples and case studies that help paint the most realistic picture of the issues contributing to today’s high-risk environment. Real estate attorneys teaching required rCRMS courses include… AAR General Counsel K. Michelle Lind, Richard Mack, Robert Bass, John Lotardo, and Keith L. Hendricks. Kudos to Coldwell Banker Daisy Mountain agents who have earned this designation along with Doreen Drew and Amy Wylie.
Doreen and Amy stay up to date to give their clients every advantage in this market. Coldwell Banker Daisy Mountain Real Estate serves the North Valley and is located in the Ace Hardware Plaza in Anthem. No question is too big or too small, so call 623-879-3277 or toll free 800-536-7336, or stop by any time!
Posted by Doreen Drew
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