Teresa Bills
Your Tampa Bay Expert!
With me, It's all about You!
Some homeowners today are dealing with difficult times and facing foreclosure. Foreclosure or the threat of it is made even more difficult because of the recent dropping of home values, making what the homeowner owes on the home, more than the current market value. If the lender initiates a foreclosure or the homeowner wishes to sell, the need for a "short sale" arises. A short sale is where the sales price of a property is less than the amount owed on it. A short sale has to be approved by the lender.
Many homeowners try to sell their home on their own to try and avoid a short sale situation. A knowledgeable and competent Realtor is better suited to negotiate with the lender to take a "short" payoff on the entire loan amount. This way, the homeowner can still sell and avoid foreclosure. Many homeowners are not aware of this and can avoid foreclosure by selling their home via a short sale. It is important to know that this can possibly save the borrower's credit and there is no obligation for the owner to pay the commissions because the lender will pay them.
This is how essentially it works:
The homeowner's loan balance is $225,000. An appraisal is ordered by the lender and it comes up with a market value of $200,000. A Realtor negotiates on the owner's behalf with the lender and gets the lender to agree to take 90% of the $200,000 as payment in full to pay off the loan and cover all closing costs. Once the home is sold, the lender reports the loan as paid in full to the credit agencies. It is less costly for a lender to agree to a short sale than to go through the foreclosure process.
Many homeowners try to sell their home on their own to try and avoid a short sale situation. A knowledgeable and competent Realtor is better suited to negotiate with the lender to take a "short" payoff on the entire loan amount. This way, the homeowner can still sell and avoid foreclosure. Many homeowners are not aware of this and can avoid foreclosure by selling their home via a short sale. It is important to know that this can possibly save the borrower's credit and there is no obligation for the owner to pay the commissions because the lender will pay them.
This is how essentially it works:
The homeowner's loan balance is $225,000. An appraisal is ordered by the lender and it comes up with a market value of $200,000. A Realtor negotiates on the owner's behalf with the lender and gets the lender to agree to take 90% of the $200,000 as payment in full to pay off the loan and cover all closing costs. Once the home is sold, the lender reports the loan as paid in full to the credit agencies. It is less costly for a lender to agree to a short sale than to go through the foreclosure process.
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