Wednesday, November 23, 2011
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When selling a home you have to give something to get something, right? In most cases this is true but when dealing with some distressed sales – that is not the case. In fact, when an agent places your home on an MLS, many times there is no charge.
After the mortgage crisis occurred and millions and millions of homeowners faced foreclosure due to job loss, home devaluation, downsizing and more – the result was that many Realtors and realty agencies began to establish separate departments within their company. These people were designated experts in the field of distressed sales, with their primary function to guide homeowners through the process of short sales.
Remember, not all agents are created equal, so there is a chance someone might ask you to pay nominal agent fees of about a few hundred dollars but many Realtors do not put this added stress on the family that is already going through significant financial strain. There could be other fees associated with the short sale, such as recording and/or documentation fees or the fees associated with HOA that cannot be avoided.
What To Do Before Considering a Short Sale
Many homeowners opt to walk away from their obligation, thereby putting their financial outlook at serious risk in the future. Even though some say that the foreclosure would only damage one’s credit for a five to seven year period – that is not exactly the case. Like a bankruptcy, you would be required to report your foreclosure on every single credit application for the rest of your life.
Though going through a distressed situation can obviously be very harrowing, if at all possible, a short sale is a far better solution as you can then expect to repair the damage done to your credit report.
An important step in determining where you stand and what your best options are is to meet and consult with a real estate agent. He or she will be able to provide a detailed analysis of your situation and help you assess whether your home and the circumstances surrounding your property is a good candidate for short sale.
With the guidance of a qualified and experienced agent, a short sale can be a refreshing opportunity to be absolved of a major burden that might otherwise prove impossible to handle differently.
There are many scam artists out there who are out to make a quick buck and would not hesitate to take advantage of your vulnerability. To avoid having the title of your home taken away, the loan not paid off and the property written off – you should be absolutely sure you are working with a reputable agent that has experience and can be trusted. The consequences of the scam described here are that the home goes into foreclosure despite your having believed a short sale occurred, therefore damaging your credit, ability to buy a home sooner and of course the negative stigma of going through the ordeal.
at 11:58 AM