Also known as a real estate short pay-off or a pre-foreclosure workout, a short sale is an agreement with a lender to accept less than the amount owed by a borrower via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure. For more information call Elder Realty at 787-207-4255.
Short sales are a way for homeowners to sell a home that they are no longer to afford, avoiding foreclosure, and reducing the damage to their credit. Elder Lopez Realty is train to help you sell your property fast and easy just give him a call 787-207-4255 or email at Elder@palmasmls.com
A short sale is when a homeowner owes more on the home that it's fair market value. If you owe your mortgage company $300,000, but your house is worth only $250,000, the selling the house would require you to come up with $50,000 to cover the difference. This is called being "upside down" on your mortgage. Just because you are upside down on a house is not sufficient reason to do a short sale - you still need a place to live, and it's going to cost you something to do that. What is happening is that consumers are falling into financial distress, or finding that economic circumstances have created a situation where they cannot make payments on their house, or continuing to do so will cause them a problem. The process of a short sale sounds simple: you market your home at fair market value, submit a legitimate offer to the bank for approval, then close on the home. In practice, it's far more complex but if you work with an experience realtor like Elder Realty Services.
Contact Elder Realty your short sale specialist as soon as you are in trouble. Don't wait. Most people wait too long to start the process. Once you fall behind on your payments, the lender is going to start foreclosure proceedings. Depending on where you live, the foreclosures process can take a few months to a year to complete. The foreclosure process does not stop during your short sale. If the foreclosure suit is adjudged before the sale is complete, you lose. The sale falls through and you're foreclosed.
Be SURE that the market analysis that determines your price is accurate! Here's how it works: Elder Realty will do a market analysis to determine what the fair market value of the property is in some cases an appraisal is necessary to justify the lost of value. The asking price of the home should reflect fair market value. Because of the situation, pricing below market value often encourages offer, but DO NOT price too far below fair market value. That works against you in a very big way.
Negotiate the offer to get the maximum possible price. Frequently, the initial offers for short sales are very low, because there is a belief that distressed properties are a bargain (sometimes they are) and the banks are anxious to get rid of them (they always are) so they will take a very low price (they almost never do). You should negotiate the price of your home as aggressively as you would if you were not in trouble. Why? Because any offer that is sent in to the bank costs you 45-90 days waiting for their approval the number of days can be done faster is you work with Elder Realty because they have the connection to deal with the lost mitigation departments on your behalf. If the offer is too low, the bank is going to reject it, which means that you have to start all over again.
Elder will not summit any offers to the banks unless they are legitimate! When an offer is sent to the bank, they will evaluate the price by: checking local values using their database; they will hire one or two local, independant Realtors to do a BPO (Broker's Price Opinion) to determine market value: hire an appraiser to do an appraisal of the property. If the price opinions are higher than the offer submitted, then they will counter back at a higher price. Elder Lopez Realtor MUST be able to defend the offer price that was submitted! If it cannot be defended, it should NOT have been submitted.
Call Elder Lopez Realty to help you with your short sale! You should not have to pay up-front fees to do a short sale. If a Realtor is experience in the process, they should be able to manage the short sale for their commission. However, the complexity of negotiating a short sale requires a LOT of time, and a LOT of knowledge and experience, the commission charge will normally be higher than the standard due to the expertise that the realtor must have and the extra hours or negotiations. Visit my website for more details at www.palmasmls.com