Today's Buzzword For 2008 - " Short Sale"

The buzz word today all across America is "Short Sale." This can be a huge benefit to a homeowner. You can't just wake up one morning and decide if you are going to sell your home at a loss by asking the lender to accept a short sale. Typically, lenders will not even consider a short sale if your payments are current. Lenders will be more agreeable to negotiate if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts. Now not all the lenders will negotiate a short sale, and that is why a licensed Real Estate Broker who specializes can be a tremendous help by contacting the lenders loss mitigation department to find out if this can be an option.
The homeowner wins by avoiding foreclosure and on their credit by selling their home before the foreclosure auction ever takes place even if they owe more then the property is worth.

Although beware of hiring a traditional Real Estate Agent without the experience with these types of transactions because they could risk bringing tens of thousands of dollars to the closing table to sell their own home. This is usually not an option for them because they are already behind on their house payments and in foreclosure status and possibly don't have any money to bridge the difference of what they owe and what the home is worth. By working with a specialist they are able to get some moving money out of the deal where they would get nothing if they lost the home back to the bank.
Sellers may wonder whether letting a property go into a foreclosure would be easier and smarter than going through a short sale. With a foreclosure, and depending on state laws regarding foreclosure, a seller could be forced to vacate as early as 3-4 months. But the fact alone does not mean a foreclosure is better.

Whereas a short is very time consuming and requires a lot of paperwork so make sure the Real Estate Broker you consult with has a proven track record and experience with these types of transactions. "The perfect Real Estate Broker will know to stay in contact with the lender in hopes of holding off the foreclosure, Mike Ochoa comments, a Real Estate Broker from San Antonio, TX. He states "letting the homeowner stay in the property rent free until the home is sold." So make sure you get in contact with the right Real Estate Broker.

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