Short sales were something that not many people had heard of until the economic downturn in recent years. I am a qualified and certified Short Sale & Foreclosure Resource. I stay current on all of the tools available to assist my clients in the best and most thorough manner possible.
Here is a quick summary of what a short sale is: Short sale (real estate) – the lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss. This usually occurs when the market drops and the property is worth less than what the current mortgage is. Usually facilitated by a loss mitigator who negotiates that debt owed down to a level where the property can be sold.
What is a Hardship?
A hardship is a life-changing event for a borrower that can result in their inability to make mortgage payments. Examples are:
- Job Loss
- Separation or Divorce
- Medical Bills
- Inability to work due to Health issues
- Death of a spouse
- Job Relocation
- Reduced Income or Unemployment
- Business Failure
5 Reasons to Avoid Foreclosure
- The homeowner will always have to disclose they have had a foreclosure on any mortgage application.
- Credit scores will be lowered by 300+ points affecting the ability to get a car, apartment, credit card, etc.
- A foreclosure is the one credit report item that is almost impossible to be ‘repaired’.
- Military and government security clearance could be at risk with foreclosure.
- Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
What is Required from the Property Owner
- Sign a listing agreement with a qualified, certified Short Sale & Foreclosure Resources, REALTOR.
- Cooperate with access, showings, offers and with the REALTOR.
- Provide all written documentation of hardship as requested by your lender(s) and REALTOR.