Why Would a Lender Do a Short Sale?

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837

Summary:
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.”

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.”
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers:
* Obtain legal advice from a competent real estate lawyer
* Call an accountant to discuss short sale tax ramifications
As a real estate agent, I am not licensed as a lawyer nor a CPA and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. will consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.
Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.
Call the Lender
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the “real estate short sale” or “work out” department, you want the supervisor’s name, the name of the individual capable of making a decision.
Submit Letter of Authorization
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:
* Property Address
* Loan Reference Number
* Your Name
* The Date
* Your Agent’s Name & Contact Information
Preliminary Net Sheet
This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.
Hardship Letter
The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.
Proof of Income and Assets
It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.
Copies of Bank Statements
If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it’s probably a good idea to explain each of those line items to the lender. In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.
Comparative Market Analysis
Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your real estate agent can prepare a CMA for you, which will show prices of similar homes:
*Active on the market
*Pending sales
*Solds from the past six months.
Purchase Agreement & Listing Agreement
When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or termite inspections. read more

Why Use a Realtor?

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339

Summary:
One of the major trends in real estate currently is people attempting to sell their homes via the process known as FSBO. Usually this is because of the idea that they will save thousands of dollars in commissions. Unfortunately this is really not the case. What is left out of these advertisements for FSBO is the fact that those thousands of saved commission dollars are usually used up and exceeded by completing the tasks that are seen to by a realtor.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
One of the major trends in real estate currently is people attempting to sell their homes via the process known as FSBO. Usually this is because of the idea that they will save thousands of dollars in commissions. Unfortunately this is really not the case. What is left out of these advertisements for FSBO is the fact that those thousands of saved commission dollars are usually used up and exceeded by completing the tasks that are seen to by a realtor. A realtor is a professional home seller. ask yourself this: if you needed to have a cavity filled would you go see an electrician? No? Then why would you allow a non-professional to sell your most valuable asset? read more

Why Some Home Sellers Prefer Direct Buyers Over Brokers

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469

Summary:
Real estate, or immovable property is the term for land, and along with anything permanently affixed or attached to the land, such as buildings and houses. Real estate is generally considered identical with real property , in contrast with personal property , which is most often called chattel or personality. However, some people would prefer to distinguish real estate real property, by referring to ownership rights over real estate.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
A real estate broker is a person or entity who serves as an intermediary, or middleman between sellers and buyers of real estate, and is the person who initiates or attempts to find property sellers and buyers read more

Why Should You Use A Realtor?

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541

Summary:
A lot of people ask why they should use a realtor instead of selling a home or purchasing a home themselves. The answer is simple. A realtor is a trained real estate professional with experience and knowledge of the local real estate market. This experience and knowledge is of critical value when one is attempting to get the most for their home sale, or finding the best possible deal when purchasing a home.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
A lot of people ask why they should use a realtor instead of selling a home or purchasing a home themselves. The answer is simple. A realtor is a trained real estate professional with experience and knowledge of the local real estate market. This experience and knowledge is of critical value when one is attempting to get the most for their home sale, or finding the best possible deal when purchasing a home. However, the realtors importance goes much deeper than that, there are several more areas that the realtors abilities come into play that are often unconsidered or overlooked. read more

Why Sell Your House to an Investor?

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525

Summary:
People selling their house have three options: list their house with a real estate agent, try to sell their house themselves or sell their house to a real estate investor. This article explains the three reasons why someone might want to sell their house to a real estate investor.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
When talking to people who are trying to sell their house I’m often asked the question, “Why should I sell my house to you?” read more

Why Room Rentals?

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575

Summary:
Why should you rent rooms in your house? Maybe you shouldn’t, but then perhaps the money would change your mind.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Room rentals? Why would you want to make your home into a boarding house? Maybe you shouldn’t. I enjoyed having people living in my house, and most of them became friends. On the other hand, you might not like that arrangement. I hated being a landlord when I owned rentals that were not my home. Each of us is different. read more

Why Realtors Need a Website

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561

Summary:
Most people looking for new homes these days use the internet to search. If Realtors want to stay in the game and increase their market they need to have a web presence.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
The real estate market is very good right now and home prices are still rising steadily. Most real estate buyers these days are well educated about the process and have done their research. This is why realtors need to keep up with the times and be able provide clients with the latest information. read more

Why Real Estate May Be the Only Real Mainstay Market

While you see businesses come to life, peak and fall, you may be thinking if a business of real estate is worth investing in. Would if the same thing happens to this business. You wouldn’t want to invest in something that won’t be substantial. Unlike other businesses, real estate is always a good investment to make, and may be the only real mainstay market.

Even though the real estate market rises and falls, there are still many benefits to being in real estate. You can expect that if something happens that causes the real estate to lower, it will eventually come back up. There is always a need for housing and people are always moving into different locations. No matter what type of real estate you are investing in, you can expect that someone will have the need to live on the property. Because real estate is part of the basic needs of individuals, it can be expected that someone will always be looking, and others will always be selling. read more

Why Real Estate Investors Have Their Own Investment Criteria

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569

Summary:
Writing down your real estate investment criteria means writing down your needs and wants in a real estate deal. It means outlining what you are looking for in a real estate opportunity. Having written criteria can help you grow as an investor and can make it easier for you to land the best real estate deals.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Writing down your real estate investment criteria means writing down your needs and wants in a real estate deal. It means outlining what you are looking for in a real estate opportunity. Having written criteria can help you grow as an investor and can make it easier for you to land the best real estate deals. read more

Why People are Buying Land for Sale in Arkansas

Word Count:
554

Summary:
One of the keys to buying land for sale, either as an investment or as the future site of your home, is finding a location that is currently undervalued, but that will increase in value over time.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
There are few feelings as rewarding as owning your own piece of land. The American spirit is essentially one of transience; our forbears were always restlessly and relentlessly pushing onward to the next frontier. But after the explorers came the waves of settlers, who found solace in being able to stake their claims and call the land their own. Their legacy is one that has seeped into our collective consciousness: the desire to plant our roots and carve out our own slice of the American dream. That’s why home ownership is at an all-time high, and why people are increasingly buying undeveloped land for sale. read more

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