What is a Short Sale?
A Short Sale occurs when a property is sold and the Lender agrees to accept a discounted amount as the payoff, thereby allowing the sale of the property to take place. The Lender receives less than what they are owed, and many times the lender will release both the security interest and any future deficiency against the seller. The purpose of the short sale is to avoid the foreclosure process. In other words, if the seller meets the lenders criteria, the lender agrees to “write-off” the portion of a mortgage that is higher than the value of a home.
Short sales are becoming more and more common in today's Real Estate Market. Short sales can be especially helpful to avoid the negative impacts of foreclosure. The key to short sales for both buyers and sellers is to be represented by a Realtor who is experienced, has the negotiating skills required to deal effectively with financial institutions, and has "lots and lots" of patience.
Randy Freed has obtained his Short Sales & Foreclosure Resource Certification from the National Associations of Realtors (NAR) and has represented both buyers and sellers in several successful real estate transactions involving short sales. Because of his well-known negotiating skills and his successful record in closing short sales, Randy is frequently asked by fellow Realtors for his advice and support. Other Realtors depend on Randy when they are involved in short sales and are unable to proceed with the transaction by themselves.
If you or someone you know would like more information on the benefits of short sales, please contact me.
Thank you,
Randy Freed
805-895-1799
RandyFreed@prusb.com
Helpful Information and Links Regarding Short Sales:
Loan Modification: HAMP, Home Affordable Modification Program: This program is designed to allow Lenders to work with homeowners to help them keep their homes by reducing interest rates and/or forgiving back payments. Through this Federal government program, homeowners apply and may be able to take advantage of modifying their existing loan and monthly payments by applying for a new loan through the Home Affordable Refinance, part of the Making Home Affordable Initiative that went into effect in early 2009. The Obama Administration introduced another program called Foreclosure Alternatives, which also is part of the Making Home Affordable Initiative. The Foreclosure Alternatives program allows borrowers who meet the eligibility criteria for Home Affordable Refinance, but don’t qualify for a modification or don’t complete the modification process, to be considered for the Home Affordable Foreclosure Alternative, HAFA.
For more information on the Making Home Affordable Program, please go to: www.MakingHomeAffordable.gov
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