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Springfield Pre Foreclosures & Short Sales
ARE YOU CONSIDERING ALTERNATIVES TO FORECLOSURE? ARE YOU CURRENTLY BEHIND IN YOUR PAYMENTS? DON'T WAIT ANOTHER DAY! STOP FORECLOSURE ON YOUR HOME! Did you purchase or refinance at the top of the Springfield real estate market?
· Do you need to sell your Ozark real estate because you are behind in your payments?
· Is your Nixa house or Republic farm value less than your mortgage payoff?
· A Short Sale may be your best option. I can work with your bank to get your property sold, forgive your excess mortgage and have them pay your closing costs - depending on your situation.
· Short Sales - Help available for Springfield, Ozark, Nixa, Rogersville, Republic, Willard, Strafford, Battlefield and surrounding areas. Call Kay Van Kampen at 417.839.4534.
WHAT IS A SHORT SALE?
Foreclosures have been a small portion of homes selling in and around Springfield Missouri. With the decrease in home values, combined with increased taxes and insurance, owners are facing a negative balance on their loans. Faced with the fact that they have no equity, their only alternative is foreclosure or a Short Sale.
A Short Sale can be a better alternative to a foreclosure. With the lender's approval to accept less than a full payoff on the mortgage balance, homeowners may be able to sell and move on. The lender may forgive the remaining balance, as well as pay the realtor fee and closing costs. Or they may make payment arrangements to repay the remaining balance.
DO YOU QUALIFY FOR A SHORT SALE?
You can qualify for a short sale if you are able to demonstrate to your lender one or more of the following:
Beginning April, 2010, here are a few of the new guidlines for the Making Home Affordable program.
Reasons for A FINANCIAL HARDSHIP
Any of the following is a qualifying reason for financial hardship:
Why Lenders Will Accept A Short Sale:
Lenders are in the business of finance, not real estate. They're not designed to own a portfolio of properties. There are many good reasons why a bank will accept a short sale over foreclosure. Here are just a few:
#1: Legal fees. Foreclosure requires attorney fees that can be avoided through a short sale.
#2: The declining market. In a declining market, a property loses value for every month it does not sell. A short sale allows a property to be sold more quickly and at a higher market value.
#3: Holding costs. Holding costs for lender-owned properties add up quickly. These costs include taxes, insurance, utilities, maintenance, management, and other costs.
#4: Repairs. In some cases lenders end up owning properties that are in need of significant maintenance and repair. Some owners who are losing their home to foreclosure neglect or intentionally damage their home.
WHY SOME SHORT SALES FAIL:
#1: Improper pricing. First and foremost, a short sale needs a willing buyer and an accepted offer. A short sale property needs to be priced to sell, without giving away the farm.
#2: An incomplete or improperly submitted short sale package. The short sale package includes multiple documents and dozens of pages. If documents are missing, it can delay the approval process and cause the sale to run out of time before the foreclosure sale. An experienced Realtor is essential to avoid these mistakes.
#3: Inadequate follow-up. Once the short sale package is submitted effective communication with the lender is critical. If the listing team is not proactively communicating with the lender and helping to move the short sale through the approval process, delays can occur, causing the seller to run out of time or the buyer to walk away from the transaction.
#4: Failure to negotiate all liens. A successful short sale requires that all debts that are liens against the property are satisfied. This requires the agreement of each and every creditor/lien holder and usually requires at least partial payment of the debt. Failure to identify which liens to negotiate can derail a short sale at the 11th hour.
BENEFITS OF A SHORT SALE
A bank foreclosure can remain on your credit for seven to ten years. Obtaining a mortgage for a new home may take up to 5 years, even then, the interest rate may exceed the normal rate. A Short Sale allows your credit to rebound much faster and allows you to repurchase without a higher rate. Beginning April, 2010, the Making Home Affordable Program has new guidelines that will accelerate the short sale process.
Call or email me for a confidential, no obligation consultation to see if a Short Sale can work for you. As a Certified Distressed Property Expert (CDPE), I can help. 417-839-4534 or email me email@example.com.