Short Sales and How They affect the Houston Homeowner

Should you use a Short Sale Realtor in Houston?
If you are suffering from some financial struggles, you are not alone. If your mortgage is becoming harder and harder to meet each month, then you are probably researching short sales. A short sale realtor can help you negotiate a short sale of your home.

What is a short sale?
A short sale is the term used to describe the circumstances when banks agree to take less from a borrower than the current payoff on a loan.
Typically this is done in a case where a borrower has a hardship that makes the bank’s potential efforts to press for repayment futile. In these cases, the bank is better off taking a loss on the property than trying to collect from the borrower.

How does the short sale process work?
The borrower sells the property for less than the amount of the loan. They turn the entire proceeds of the sale over to the bank. This circumvents a foreclosure, which protects the borrower’s credit. The bank agrees to this because the fees associated with a foreclosure are quite hefty. It costs banks a lot to foreclose. The entire short sale process helps both the borrower and the lender.
Does this erase the debt?

It depends. If a settlement price is negotiated prior to the sale of the property, then the short sale could result in the borrower being released from their financial obligation. If no settlement was negotiated, then the borrower is still responsible for the balance of the loan. 


Why are banks agreeing to short sales?
The past few years have resulted in a dramatic increase in the number of foreclosures. As a result, banks are more inclined to accept offers of short sale rather than simply lose even more money on their loan.

How is my credit impacted?
If your options are foreclosure or short sale, you are much better off with the latter. Sometimes banks do not even report a short sale. But if it is reported, it will not damage your credit to the extent that a foreclosure would. And it does not impact your credit for as long as a foreclosure would.
You can expect a short sale to be on your credit for roughly two years. A foreclosure will remain on your credit for seven to ten years.

What is a Short Sale Specialist or a short sale realtor?
A real estate agent who specializes in short sales can also be known as a Short Sale Specialist. These short sale realtors can help you negotiate the financial landscape of the short sale and avoid much of the humiliation and embarrassment you may be feeling. Many people who find themselves behind on their bills find that they can barely talk about it and dread even opening their daily mail.
If you staring down mounting mortgage payments, a Short Sale Specialist can help you. The team at http://www.coronadoteam.com  has experienced short sale realtors to walk you through your negotiations.

What should I look for in a short sale realtor?
You really want an experienced short sale realtor to help you out. These professionals can assist you with negotiating terms that will fully release you from any financial responsibility. Ask your short sale realtor their rate of success with short sales.
You really want a realtor who has experience in this specific type of sale. Realtors are not trained in the short sale process as part of their preparation to begin working. A short sale realtor is someone who specializes in helping clients negotiate the best terms possible.

Do I have to pay a short sale realtor?
No, the commission for the short sale realtor comes out of the lender’s profit.
If you contemplating foreclosure or a short sale, you need to speak with a short sale realtor about the short sale process. They help you decide if the short sale is the right choice for you. They can also help you every step of the way through the short sale process.

Call an experienced short sale realtor today. If you want more information on short sale realtors, check out http://www.coronadoteam.com.

Was this helpful? 0 0 Comments

You're reading Short Sales and How They affect the Houston Homeowner.