Did you know that it does NOT cost anything to homeowners if they short sale their property?
In other word, you can avoid foreclosure, do a short sale, and save your credit report, all for FREE. Period. No costs to seller, whatsoever. No strings attached. It’s hard to believe, but it’s 100% true.
It is a sad and unfortunate fact that most of the distressed homeowners do not take any action to save themselves from foreclosure for many reasons. A lot of homeowners are worried about paying real estate commissions to agents who sell their homes. “I think that a short sale is my best option, but I can’t afford to pay the real estate agents’ commissions.”
The reality is that agents are paid by the short sale mortgage lenders, and NOT homeowners. Homeowners do not pay real estate commissions to do a short sale. Real Estate agents do all the work to get a short sale approved and are, in turn, paid commissions by the short sale mortgage lender.
Now, you might be thinking that why would the mortgage lender accept a discounted payoff and pay commission to agent for doing a short sale when they can recover the money by doing a foreclosure sale? The truth is, lenders actually lose more money in foreclosure sales than in short sales. In the case of a foreclosure sale, mortgage lenders have to go through process of foreclosing and then putting the property on market. Also, since the properties are no longer occupied, they are more prone to damage and vandalism. Banks are in the business to lend money, not to own properties. If the property becomes an REO (real estate owned; bank owned), the bank now has the responsibility to pay property taxes, insurance, utilities, etc. They have to keep the property up by paying somebody to mow the lawn, clean the inside, inspect it to make sure that there are no squatters, break-ins, vandalism, etc. If the property is in terrible shape, the bank may also need to do repairs on the property as well.
Mortgage lenders do not like excess inventory and bad loans on their books. So, they pay commissions to real estate agents for helping them in getting these problem loans off their books. Real Estate agents work with homeowners and help them compile and put together all the necessary paperwork to apply for a short sale. They negotiate with the mortgage lender to approve the short sale, and once the short sale is approved and the property is sold, mortgage lender pays commissions to the agents for their services.
Is a short sale right for you? Certainly, losing one’s home is a painful and devastating experience, but it is important to stay composed in these distressed times and focus on ways to ensure that you do not close doors to future possibilities.
Did you know a foreclosure stays on your credit record for SEVEN YEARS? It is time to act wisely and make the right decision so that minimal damage is done.
Still not sure about your options? Give me a call at 909-972-0041, and we will discuss your situation and the options you have. Don’t worry, I will not charge you anything for this. It will be a 100% FREE, no obligation consultation session.
Act today, and save your future.
P.S. I’ve closed over 90% of my short sale listings. The national average is 15 to 20%.