Are you a Distressed Homeowner? Maybe facing Foreclosure? Thinking About Short-Sale?
Is your mortgage upside down? Are you finding that your mortgage is getting further and further behind?
Today’s market has many challenges. Many homeowners owe more than their home is worth. Some of these homeowners need to sell, others may be relocating, some are facing foreclosure. If you or someone you know is in one of these categories you have come to the right place!
As a Certified Distressed Property Expert (CDPE), I am here to help! I can help you understand your options whether it be a modification of your current loan to make the payments affordable, short sale, or foreclosure. Understanding the options will help you make the best decision for your current situation. Best of all, I can help you through the process. With my expertise and my team of professionals we can all work together to get you the best possible solution for your situation.
Foreclosure and short-sale properties continue to be a large part of the local market. These properties can be a good value for the Buyer who is willing to put some elbow grease and money into restoring these homes to their former beauty. Financing to help you make a distressed property your dream home, may be available to you.
Buying a foreclosure property is different than buying a short sale property. A foreclosure property is already owned by the lender and decisions are often made by the lender quite quickly when an offer comes in. It is possible to close a foreclosure property quickly, provided the buyer is paying cash or has financing in place at the time of offer. In many cases the lender will only give a limited time to close and they will charge a per diem if the deal does not close on time.
A short sale is different in that the Seller of the property is not the lender but either an individual, corporation, LLC, etc. The Seller has come into a hardship that prevents them from continuing to pay their mortgage and therefore must sell the property for less than what they owe. In this case, the seller must accept the offer and then the accepted offer along with paperwork supporting the hardship must go to the loan servicer/lender for review before the servicer/lender negotiates with the actual investor for approval of the deal. The investor can accept, reject or counter the deal. Since there is a list of documents that are required by the servicer/lender that must be submitted with the offer, it may take some time to get all the required documents to the servicer/lender so they can move the file forward. There is no standard for required documents and there are different requirements for different lenders and even different requirements for different types of loans with the same lenders. The rules/requirements also change from time-to-time making it almost impossible to know what each lender requires for their decision-making process. For this reason, Buyers of short sale properties need to be patient and be willing to wait for a decision. When purchasing a short sale property Buyers should ask if the lisitng agent is a CDPE or has had experience with short sales. An experienced agent with the proper training will have a better chance of getting the short sale property to the closing table.
There are some properties that are pre-approved short sale properties and what that means is that the lender has been given a number or a range of value that may be acceptable to the investor. In these cases decisions usually come faster, but there is still no guarantee of acceptance by the investor. Each file still must be reviewed and approved by the investor. These deals do have a higher rate of acceptance but investors do change their mind so nothing is absolute.
Knowing all this, then how is a short-sale better? Actually, short-sale properties sell closer to market value than bank-owned properties. Short-sale properties are generally in better condition than a foreclosed property. Unlike bank-owned properties that are most often vacant, homeowners will often remain in their homes during the short-sale process so these homes are less likely to be vandalized as compared to vacant properties. While no one can guarantee that a lender will accept a short-sale, it is a better solution for both the lender and the homeowner. My training and expertise in this area has resulted in many successful short sales.
On a positive note, there are new initiatives that have been mandated by the government designed to streamline the short-sale process and make the process not only smoother, but faster. Until now, the biggest obstacle to a successful short-sale is keeping the potential buyer interested in the property while the bank makes their decision. The new initiatives have mandated a 30 day response time in many cases! Could a short-sale be the right answer for you?
Call me and lets discuss your issues and I will show you how I can be of HELP! You can reach me at 203-816-5285 or via email at email@example.com.