Anyone need/want to short sale and need an expert?
As a home owner, few things are worse than being upside-down/underwater on your mortgage, especially when there is a need or desire to sell. Due to the housing market bubble collapse of 2007/2008, and the following home buyer incentives of 2009/2010, a large percentage of home owners are finding themselves in this position. Many of these home owners are less than 5% underwater and can pull themselves into a position to break even within 2-3 years. But what about the rest of you, who are 10%, 20%, or even 40% underwater?!
The answer is SHORT SALE! A short sale is an agreement between the home owner and the lender, where the lender agrees to let the home owner out of the mortgage for market value of the property (less than the amount of the mortgage) and to waive the deficiency, and the owner takes a lesser hit to their credit than a foreclosure. We are seeing less foreclosures and more short sales coming on the market as short selling is a much better option for both the home owner and the lender.
Here are a couples of links that explain the principle of a short sale:
A few things to consider about the decision to short sale:
1) To break even, a home owner not only must be able to sell their home for what they owe on their mortgage, but they need to sell it for enough to cover their own closing costs AND Realtor fees. These costs can range anywhere from 5-7% of the purchase price. So if selling a home for $200,000, the break even point will fall between $185,000 and $190,000.
2) After a short sale is completed, that individual can not qualify for another mortgage for three years. Although one's credit can recover within 6-12 months, current guidelines do not allow a buyer to qualify for a mortgage until at least 3 years have passed from the closing of the short sale. But immediately at three years, that individual's situation will be as if the short sale never happened (as long as they have lived financially prudent since the short sale). With a foreclosure, the individual's credit is hammered and they don't qualify for a mortgage for 5-10 years.
3) Annual appreciation historically sits around 3-4%. Since the bubble burst, we are yet to see ANY appreciation, although many of us believe that is changing right now. But if you are 15% or more underwater, it will likely take at least 6 years, probably closer to 8 years, of appreciation and paying off principle to get to the 'break even' point; and even then, you will have likely dumped excessive money and time into maintaining your home while making an excessively high payment for your property relative to what is available for rent.
4) The majority of lenders require owners to stop paying their mortgages in order to move forward with the short sale. So most short sale sellers live mortgage free in their homes for 3-6 months while the short sale process is occuring.
5) The closing costs and other closing fees are agreed upon and paid for by the lender. Some lenders even give the Seller some money to move as part of the short sale! So the cost to the owners to short sale is very minimal if anything.
Over the past year, I have a 100% success rate on my Short Sale listings. I have closed 5 already this year, with 3 currently under review by the lender that will likely close this year, and 1 more brand new listing that I just received an offer on today.
I have partnered up with the law firm of Turner and Simpson in Salt Lake to negotiate my short sale listings. So when you hire me to complete your short sale, you are literally hiring a Realtor with a law degree and the SFR designation (Short-Sale and Foreclose Resource), an attorney with decades of experience and who specializes in short sale/foreclosure law (Johne Turner), and several expert negotiators who negotiate short sales with lenders all day every day (Dan and Melissa). It costs $125 upfront, and $500 at closing, to hire Turner and Simpson, but I agree to pay the $500 for my clients as long as the short sale purchase price is over $120,000. In other words, it only costs the hone owner $125 to have this whole team of educated and experienced experts working on their behalf! That is a steal if you ask me!
My average short sale approval time for these 5 completed deals is around 10-12 weeks! That is blazing fast and my sellers will tell you that working with my team of experts has made the process smooth and relatively stress-free. Again, I have a 100% success rate on every short sale that I have taken and I am positive all of my short sale clients have nothing but positive things to say about the whole process.
If you are more than 5-10% upside down on your mortgage, I highly encourage you to speak with me. If you are over 10% upside down, you really need to speak with me. If you are over 15% upside down, you would be crazy not to call me this week!
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