Whether I am representing a home buyer or seller, I always strive to create a win-win situation for everyone involved. When it comes to short sales, patience and perseverance are job one. With today's challenging and increasingly complex housing market, Realtor's, including me, are handling an ever increasing amount of short sales.
Do you know someone who is facing a short sale?
I just listed another short sale yesterday. It's a "fixer-upper" with a ton of potential in the 30008 zip code of Marietta.
To stay current on real estate trends, I am forever participating in continuing education. Many of these classes are focused on the skill sets necessary to consummate a short sale. I am proud to say that my experience with short sales, foreclosures, REO and HUD properties has enabled me to earn a national designation in this specialty field too. Education coupled with daily practical on-the-job experience has proved to be invaluable.
Believe it or not Short Sales can be a win-win situation for both the Buyers and the Sellers. Short Sales can also cause many complications if not properly understood and executed. Since there is no provision in the mortgage agreement for a short sale, the primary lien holder -- the mortgage servicer -- must approve the homeowners request for one. Any additional parties with liens against the property such as a 2nd mortgage holder, must also approve the request before a short sale can commence. While each short sale scenario is unique and includes seemingly endless variables, the primary benefit to the homeowner is simple -- a short sale lets them avoid foreclosure on their credit record at a time when a good credit history is critical for financial and personal reasons.
Homeowners rarely enter into this process on their own -- instead they rely on Realtor's, attorney's or other professionals to communicate directly with the mortgage servicer. Since each servicer has their own guidelines and requirements, they play the lead role in ultimately approving or declining the terms of a short sale.
Despite obstacles that can arise, one of the keys to short sale success is the turnaround time it takes to process each short sale request. Earlier this year I represented a 1st time home buyer couple who wanted to close by June 30th so they could get their 1st time home buyer tax credit. We made an offer on the property in early March. Through many days, weeks and months, we hoped that the mortgage servicer would approve the offer and ultimately the sale in time to be eligible for the tax credit. Luckily it happened successfully. My buyers are happy home-owners today. It shouldn't go without saying that the mortgage servicer basically took us up to the 11th hour before we knew for sure that the transaction would be approved. Patience and perseverance paid off.
Most buyers and sellers can't wait indefinitely for an answer from the bank. As a result, often times, it is not the first potential buyer who comes along and makes an officer who purchases the property. When buyers wait weeks without any feedback from the bank, they move on to other properties.
Ultimately the goal is always to create a win-win situation. Ideally the seller moves on without enduring a foreclosure and in affect saving their credit; the Buyer gets a home that he might not otherwise be able to afford or at a reduced price; and the bank saves tons of money since they didn't have to start foreclosure proceedings on the Seller.
Foreclosures and short sales ARE NOT for everyone! your Realtor knows your individual situation. Ask your Realtor if a foreclosure or short sale is is right for you.
Sara Hibbard is a Realtor in the Atlanta metro area. Sara is available to answer your many questions or assist you whether you are planning to purchase a home or sell your current one. Please call Sara anytime at 770-399-8108. Sara Hibbard is glad Georgia Real Estate is on your Mind!
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