Need To Sell Your Home Short Sale In Mason?
Selling A House In A Short Sale To Avoid Foreclosure
Selling A House In A Short Sale To Avoid Foreclosure
Selling a house or condo in a short sale may be the best option for avoiding a foreclosure. If you have fallen behind on your mortgage payments due to a reduction in your income, a job layoff, medical reasons or other financial obstacles you may want to consider a short sale instead of just letting your home go into foreclosure.
What is a short sale? A short sale is entered into when a homeowner facing financial distress lists their home with a real estate agent experienced in doing short sales. When an offer to purchase the home is submitted by a potential buyer the contract is made contingent upon the approval of the mortgage holder or holders accepting a payoff which will not payoff the entire balance owed on the mortgage or mortgages. The term short sale comes from the concept that the lender will accept a short payoff to allow the sale to proceed rather than continue with the foreclosure process which may cost the lender tens of thousands of dollars.
There is no cost to the homeowner to do a short sale. The bank pays all of the fees associated with selling the home. A short sale is not a typical real estate transaction, it has more details and obstacles to navigate. It is critical that only an experienced short sale real estate agent handle this transaction. Foreclosure is a stressful process, don’t go through it alone.
Wondering if a short sale is right for you? Contact Eric Lowry confidentially to learn more and get started!
We can assist you with selling a house or condo in a short sale to avoid foreclosure of your home in West Chester, Beckett Ridge, Liberty Township, Mason, Fairfield, Monroe and Fairfield Township, Ohio
West Chester & Liberty Township OH Real Estate: Avoid Foreclosure – You Have Options!
Today, nearly 1 out of every 6 homeowners in America is behind on mortgage payments. The last thing a homeowner wants to face is the possibility of foreclosure, but troubles with finances can happen suddenly and without warning, leaving a homeowner desperate. But foreclosure can be avoided, credit can be saved, and financial futures can be salvaged. First, identify the options.
There are a number of alternatives homeowners can consider. An experienced professional can steer you in the proper direction, so you can find your financial solution quickly and handle any mortgage and loan issues with care. Here are just a few suggestions how one can avoid foreclosure:
Modification – A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan the term of the loan or all or any of the above. This typically results in a lower payment to the homeowner and a more affordable mortgage. With the modification plan, delinquent interest, taxes, and /or insurance payments are added to your unpaid balance on your mortgage. Homeowners who qualify for this program may be able to extend repayment of their past due bills over the remaining term of the loan.
Government Loans & Assistance Programs – Homeowners who can make the monthly payments on the mortgage may qualify for special government loans that create a second lien on their property for the unpaid amount. This money is then made payable to the US Government.
Pre-Foreclosure Sale – Foreclosure can wreak havoc on your credit rating. If you are in danger of losing your home and are unable to make payments, you have the option of selling before any marks can be made against your credit.
Short-Sale – While this may be the best solution for some, it is important to understand that there are 3 “must-have” criteria to qualify:
1. Financial Hardship – a verifiable issue that has or will cause you to miss payments or have financial difficulties
2. Monthly Shortfall – When your total Monthly Income minus your Total Monthly Expense = Negative amount
3. Insolvency – You must not have the means to pay down your mortgage.
You do not however have to be completely broke–this is a common misconception, the lender will want to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses is common and will not disqualify you.
Temporary Forbearance
Another less common way to avoid a home foreclosure is to get a temporary forbearance on your mortgage, which means that you repay the back amount that you owe on your loan over a certain amount of time. This is good if you can afford to make your monthly payments, but had a crisis which forced you to miss a payment. When you choose to do a temporary forbearance to avoid a home foreclosure, you should know that your payments will usually increase slightly, but you will be able to get back on track with your lender and resume making your regular payments when you have repaid the back amount.
Different homeowners will qualify for different options to avoid foreclosure. Seeking the advice of a professional is a good step in preserving your property and your credit rating.
In my over-12-years in the real estate industry, I have witnessed many clients and friends lose their homes through foreclosure. That is why I specifically designed a department of this company to help other people avoid the foreclosure nightmares that I’ve witnessed. We know that good people sometimes have a few bad breaks.
No matter what, the worst option is to…
Do Nothing – Absolutely the worst.
Take action Now!
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Ohio Real Estate: Tax Credit Deadline Extension
The Congress is close to passing a law to give home buyers who were under contract on a home purchased by April 30 an additional three months to close on the home and still be able to claim the federal home buyer tax credit. The new deadline is going to be September 30th, 2010.
This will not extend the deadline for home buyers to qualify for the tax credit. To qualify for the credit you had to have purchased and had a fully executed contract by April 30th, 2010.
The reasoning given for the extension was that many home buyers were not going to be able to close on their new homes in time for the June 30th deadline due to a backlog of loan applications that lenders were trying to handle.
The real issue here though, are the short sales. Many of these sales were not going to able to be closed in time due to the long delays that occur in trying to complete a short, thus there was going to be a large number of “fall-thru’s” (sales which do not close) and all of these properties were going to be coming back onto the market with a large number of them headed for foreclosure.
Looking for deals on short sales and foreclosures in West Chester & Liberty Township?
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West Chester OH Real Estate: Anatomy of a Short Sale
A short sale is the selling of property to avoid foreclosure, the catch being that the property is being sold for less than the amount owed on it. What makes a short sale tricky is that the sale price is not up to the seller, the lender has to agree to the purchase price. The home owner isn’t walking away with any money at closing in the case of a short sale so he doesn’t care if the home sells for a dollar, the bank’s involvement is to reduce their loss as much as possible and the buyer just wants a bargain.
The basic process of a short sale is:
- Although many believe that a borrower must be in arrears on loan payments this is not necessarily true
- Borrower or broker contacts lender to discuss the possibility of a short sale
- Potential buyer makes offer, knowing what is owed by borrower/owner of property
- Lender reviews loan and offer
- Borrower has to show/prove financial hardship
- Lender and broker discuss value and condition of property and examine any offers
- Lender makes final call
The short sale process looks easy on paper, follow the steps and the deal is done, short sale completed. However, in reality the communication between the borrower, lender, Realtor and potential buyer is complex and time consuming. Simply wanting a short sale won’t make it happen. Using a CDPE (Certified Distressed Property Expert) eases the pain and insures you better success when trying to complete a short sale. “Being in financial stress is not easy on anyone and and having received the CDPE designation will help me get the job accomplished in a more timely manner and help create a successful real estate transaction for my clients” said Eric Lowry.
West Chester, Ohio Real Estate: Certified Distressed Property Expert
ERIC LOWRY EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE
Eric Lowry of Keller Williams Realty, West Chester, Ohio has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Cincinnati, Ohio area, an increasing number of homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Eric Lowry. “It is so rewarding to be able to help sellers save their homes from foreclosure.”
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Eric with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.
For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.