Economic crisis has affected a lot of people – the global financial downtrend has started years ago yet, the world has not yet recovered from its adverse impact. And you too, are in such a tight condition. The value of real estate has gone down tremendously, business operations fluctuated and there is no way you can repay your debt. The bank is already calling your mortgage as due and demandable on account of default in payments. You are now in the worst scenario.
Foreclosure of your property is becoming imminent and your credit position will consequently suffer a negative rating. You really are distressed because of the frequent collection letters from your bank and real estate short sale will just be the perfect solution under the circumstance. But you cannot do this process as effectively and as fast as an experienced real estate agent would. Thus, you have to look for a trusted broker!
What is short selling?
Short selling a residential property is a process wherein the mortgagor, bank or lender will allow a borrower-homeowner to sell the mortgaged property at less than the mortgage balance. All the proceeds of the sale will go to the lender and the house owner will be set free of any financial obligation from the lender. It is called short sale because the house will be sold at less than the amount of the lender’s debt claim.
The borrower agrees on short sale to be totally relieved of the debt. The lender for his part will agree to this process to have the mortgage closed, remove a past due account from its loan portfolio and to incur lower expense in lieu of foreclosure.
The role of a realtor
The real estate agent will take on the entire process until the sale of the house is culminated. Once borrower makes arrangement with the real estate professional, the latter will prepare documents and present the proposal to the lending institution. Approval for short sell will be sought. The broker will place the property in their listing. The entire process is long, complex and tedious. If you are the borrower, taking care of every step involved in the short sale will take much of your time. Furthermore, you may not be well-versed with the process and the laws governing this.
Your best option is to go to a realtor, have this expert handle your transaction. The good thing here is you are commission expense free. The agent’s commission will be on the lender. These experienced professionals have adequate contacts with lending institutions so that they can really facilitate the process. Although they may be working on this project as thoroughly as possible, it would still take some time to finalize the process. But then, while the process is going on, you are relieved from worries about the lender’s prompting for payments.
Another benefit for the borrower is less negative effect on credit rating – as compared to foreclosure. Peace of mind is achieved. Another good side of the short sale – the borrower is allowed to purchase a new property, as compared to foreclosure where a waiting period is imposed.
If you are among those whose property valuation has turned sour and your financial conditions would not permit for loan repayment, then it is best to go to a real estate agent. It is just logical to offer your property for short sale.
The Rob Lamb Long Realty Team is your number one source for Catalina Foothills Homes for Sale, Tucson Foothills Real Estate, Catalina Foothills Real Estate and more. Voted TUCSON’S #1 REAL ESTATE AGENT 2008! http://roblamb.com
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