avoid foreclosure – What to Know Before Buying a Short Sale by Apple Bass
November 13th, 2009 | by admin |In light of the U.S.’s current economic state, many people are finding it difficult to make ends meet. Coupled with wide-spread job losses, the housing market has also seen a dramatic decline. Families are struggling to pay mortgages, and are sometimes faced with the prospect of their lender foreclosing on their home. Although this is happening all across the country, Tampa, Florida real estate has seen a near epidemic of just this scenario.
WHAT IS A SHORT SALE?
Selling the property may be the only way for some homeowners to avoid foreclosure. And if the homeowner owes more on the property than it is worth on the real estate market then the only possible way to sell it is through a “short sale”. A short sale, simply put, is where a home is sold for less than is still owed on the mortgage. This is done with the approval of that lending institution or multiple institutions. Today’s real estate owners are taking advantage of this process more and more as the market prices spiral downward. Anyone considering this option is advised to consult their accountant, attorney and real estate professional to learn more about the process and how it may help in their particular situation.
SHORT SALE CONSIDERATIONS FOR SELLERS
Not every home near foreclosure will qualify for a short sale. All sales are subject to the final approval of the lender. And if more than one lender is involved then the process can become quite cumbersome. The process of a short sale can take up to 60 – 120 days after the offer has been made by the buyer. And if the current owner has already been served legal documents from the bank leading to foreclosure, this time period can be very unnerving for them. However most experts will agree that selling the home through a short sale offers a better outcome for the homeowner than a bank foreclosure would.
HIRE REALTOR EXPERIENCED IN SHORT SALE TRANSACTIONS
For those looking to take advantage of a short sale deal, there are a few things to consider before the purchase of that piece of property. It is extremely important to investigate who is in possession of the title for the real estate, as well as whether or not the owner has received a foreclosure notice. Knowing how much is owed to the lender of the mortgage by the homeowner is also important in knowing exactly how much to offer on the home. It is in the best interest of a potential buyer to find a real estate agent who is well-versed in negotiating deals involving short sales—it can help to alleviate a lot of headache and heartbreak.
If a short sale is executed, it will not always end in the previous mortgage holder being free of any responsibility for the remainder of the mortgage. And there may be income tax implications.
Short sales have been able to help out homeowners in many instances, and should be an option taken into consideration by an owner facing foreclosure.
About The Author
Author’s Note: This article was originally posted at http://www.applebass.com.
Apple Bass is a Prudential realtor in Tampa, FL. She is a recipient of the prestigious Platinum QSC Award for 100% customer satisfaction, and is consistently ranked in the top 3% of Prudential real estate professionals worldwide. You may reach her through her website: http://www.applebass.com.
Apple Bass is the sole owner and author of the article and owns 100% of all copyrights pertaining to it.
Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…
Homeowners may be able to rent rather than lose home to foreclosure
… whether you can become part of this new rent-back offer. Lita Epstein has written 25 books including The 250 Questions You Should Ask to Avoid Foreclosure. Read More…
Foreclosures declining on most of Treasure Coast
And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are … Read More…
Loan modification programs under Obama's plan – Be Eligible to Avoid Foreclosure
… hardship that could help you in getting eligible for a successful loan modification: Qualify for mortgage loan modification and prevent foreclosure now! … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.
How about these right… I think you’ll find the following nuggets of wisdom particularly insightful. Leave your comments below. Check out the second one in particular…
How to Avoid Foreclosure : REALTOR.com® Blogs :
How to Avoid Foreclosure. October 28th, 2009, 2:00 pm. foreclosuresign-medium. The powerlessness felt by a homeowner facing foreclosure can be overwhelming. Whether it be due to job loss or adjusting mortgage rates, home owners are …
A Few Strategies for Avoiding Foreclosure | Bank News, Bank Deals …
2009 has been one of the most difficult years for householders in the United States. The general malaise across the economy has contributed to a large increase.
Foreclosure notices hit record 8800 – Mortgage Insider : The …
Lenders know this and are responding by keeping a lid on foreclosures, he said. (I'll add that readers of this blog have argued lenders are intentionally delaying foreclosure to avoid flooding markets or recognizing losses on their …
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