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SHORT SALE / PRE-FORECLOSURE A Short Sale occurs when the outstanding obligation of a borrower (loans) against a property is greater than what the property can be sold for. For homeowners who can no longer afford to keep mortgage payments current, there are alternatives to foreclosure. Getting an approved Short Sale is one of those options. Lenders that have to take a property back through foreclosure process understand the costs they have to bear only to receive market or below value return on their asset. This is the reason that lenders, given certain circumstances, employ aggressive "Asset Loss Mitigation" policies. A Short Sale therefore, is not only a way for a financially distressed homeowner to avoid the stigma of foreclosure, but also can limit the loss exposure of the lender. This complicated process is better taken with the experienced direction of an attorney or real estate broker that can guide a homeowner through the process, and eventually market the home to obtain the highest market value. Buyer's of short sale properties should be aware of some pitfalls such as undetermined and sometimes very lengthy process times, price changes based on lender valuations, and outright rejections due to non qualified distress situation. contact Alex Shefchek at 303 570-8918, email: alex@alshefchek.com |