What’s a Short Sale?
Recently, the phrase Short Sales has become popular in America. A Short Sale is where a homeowner sells his home at a price which is lower than what he bought the home for or what he owes on the mortgage. The lender agrees to take a Short Pay-off, a loss, and may or may not forgive the homeowner for the difference.
Why Short Sales Have Invaded America
Ill-advised that value appreciation would go on forever and/or caught in the buying frenzy of the time, thousands of American citizens stampeded to the scramble to buy, which pushed home prices even higher. The effect of this mayhem is that many homes that were bought or cashed out between 2004 and 2006 are now upside down in value. Most of these homes were bought using no-money-down and other abusive lending practices. The ones that were refinanced were equally over-leveraged, thousands of which were negatively amortized. (Click here if you want to understand why we got ourselves into this mess)
Short Sales vs. Foreclosure for Homeowners
I strongly recommend for homeowners whose homes are under water to first of all engage their lender in affable conversation if they intend to keep their home. It doesn’t matter how negative you are on your mortgage, the first thing you or anyone you know should think of is Loan Modification. If you are gainfully employed, and happen to have had one of those funky loans, the chances for you to qualify for a Loan Modification are pretty high. I recommend Short Sale for those homeowners whose lenders are not able to work out a solution to keep them in their homes.
It is advisable to do a Short Sale versus simply walking away from your home and allowing your lender to foreclose on you. For one thing, if credit scores and the ability to borrow money in the near future are important to you then you definitely should opt for a Short Sale rather let your home be foreclosed. Though you may be able to remove a foreclosure from your records, the damage foreclosure causes to your credit can forever ruin your credit and your ability to borrow. This is not the same case with a Short Sale. In a Short Sale situation, you will lose anywhere between 60 and 100 points on your FICO scores but you will be able to recover and buy a home or borrow money again within 12 and 24 months.
Is your home upside down in value? Would you like me to help you in providing a lasting and beneficial solution to your problem? Simply fill out the form below or contact me 24/7 by phone (800-268-3659 ext. 411)
Short Sales for Investors
If in your world the cup is always half full then the world of Short Sales offers you immense opportunities. Unlike REOs where hordes of buyers rush to buy the few properties that are available, you can be in absolute control when you deal in Short Sales.
Many real estate agents and their buyers shy away from Short Sales because of the belief that Short Sales take a long time and lenders are hard to deal with. They would rather opt for properties that have already been foreclosed by the lenders. For you, on the other hand, Short Sales can be a Gold Mine. You can make offers on pristine properties, some of which are still inhabited by the current homeowners. You can negotiate with the lenders yourself or allow my staff and I to help you do so. You get these homes for pennies on the dollar and flip them for immediate profit or hold them long-term for cash-flow.
Would you like to learn more how you can make a ton of money in this market buying and selling Short Sales? If so, either contact me by filling out the form below or calling my free pre-recorded message 24/7 (800-268-3659 ext. 411). I look forward to hearing from you.
