When a homeowner has fallen delinquent in payments, an option before foreclosure is a short sale. A short sale is where negotiations with the lender are made to sell the house for less than what is owed. With the US real estate market in decline, the increase in short sales has grown quickly in popularity.
If you are behind in your payments and considering a short sale, finding an experienced short sale negotiator is the first step you should take. A short sale negotiator has established relationships with many banks. They know how to negotiate a short sale that banks are willing to accept and keep your best interest in focus.
As a neutral party, the short sale negotiator has no ownership role during the process and will be paid only when property is sold and the terms negotiated with the bank are met in full. Benefits of working with an experienced short sale negotiator that a distressed property owner can expect will be:
• Remain in the property during the sale
• Have time to make other living arrangements
• May have option to rent or buy the property back from a third party
• Your liability of the loan is released
• A foreclosure on your credit history is avoided
• Avoiding bankruptcy on your credit
Most real estate agents steer clear of short sale negotiations. There is a lot of planning and preparation for a short sale. If not properly trained to deal in short sales, the success rate is not good. A trained short sale negotiator knows what necessary financial information is needed by banks to show your hardship. The negotiator will know who to contact at the bank and how to submit the paperwork to the parties involved such as title companies, mortgage insurance companies and public trustees, making this a hassle-free process for you.
The biggest benefit of a short sale is that if you don’t satisfy the balance of your mortgage, the bank has agreed to forgive the deficiency. Therefore a short-sale is positive for both the lender as they don’t have to go through the process of foreclosing and the homeowner will walk away without a huge amount of debt.