The Right Attitude Will Get Your Short Sale Approved


Being on the brink of foreclosure is not fun. What would make this situation worse is if you are already underwater on your mortgage. Obviously, there is no other option available to you but a short sale. It is the best foreclosure alternative and it will even may allow you to move on without having to worry about a blemished credit report.

You need to understand a short sale is not as simple as some people make them out to be. It actually involves a lengthy and complicated process. It would be to your advantage to work with a short sale Realtor.  The best way you can ensure your short sale is approved, is to have the right attitude.

Be Realistic

Deciding to apply for a short sale to stop foreclosure is indeed smart, but you have to go into it with open eyes. For starters, it will involve hard work as  try to show your lender you are indeed in financial trouble and can not pay your mortgage any longer. You will need to provide financial statements and other documents which back your claims such as divorce papers, proof of lack of employment and medical bills if consumed by bills. You will also need to find a buyer who is willing to wait until the end, when the lender finally accepts the offer and approves the proposal.

Be Honest

In short sale, there is no room for lies and deceit. You need to establish a trusting relationship with your short sale Realtor, since he will be the one who will work hard to make sure your chances to stop foreclosure are greatly improved. You also need to be honest with your lender and make sure honesty comes off in the documents you will be submitting. Lastly, you have to be honest with the buyer about the property and the entire transaction. This is truly one of those cases when being honest pays off.

Be Optimistic

This is perhaps the most important attitude. The road to short sale approval is riddled with challenges and you might find yourself falling several times, but never lose hope. Iif worse comes to worst, you will learn a lot from the experience.

Short Sale – Your Best Way Out


It is indeed funny to think that years ago most people had not heard of a short sale transaction. It was something homeowners were not familiar with. Even Realtors and lenders for that matter rarely encountered these transactions in their daily work. Lately,  short sale transactions are getting more and more popular especially amongst distressed homeowners.


Of course, this should not be surprising. Short sales remain the best foreclosure alternative out there for homeowners who:

  • Are underwater or owe more in mortgage debt

  • Are on the brink of mortgage default and did not qualify for a loan modification

The reason is simple. Short sales allow them to sell the home and pay off their mortgage debt while suffering minor credit damage.


True, getting a short sale approval can be challenging but if you make sure every document is submitted and you have provided a good enough reason why you are applying for one, the home should go to closing. The hardship letter, for many, is the trickiest to comply with. It has to be truthful enough to convince the lender and at the same time clear enough for the lender to see there is no other choice but to approve the short sale.


There is also the matter of finding a buyer and making sure his interest on the property stays until the lender accepts the offer. After all the challenges, being able to avoid foreclosure with a short sale will make you feel all the trouble was worth it.


As for lenders, they now view short sale as a solution to their growing inventory of REOs. To make the deal taste even sweeter, the federal government has offered them incentives for completing such transactions. Of course, there are lenders who are too stubborn to realize foreclosure will cost them more money in the long run compared to a short sale.


At the end of the day, it is really just a matter of doing all you can to avoid foreclosure. If hiring the best short sale Realtor will help your cause, then do so. It might be your only chance to get out of this mortgage mess.

When the Going Gets Tough, the Tough Consider Short Sale


As a homeowner, your worst fear will usually involve losing your home to foreclosure. This is certainly something to think about considering the state the housing industry is currently in. Of course, there is such a thing as thinking ahead and it would be wise for you to look at your options — the best of which is a short sale.

A real estate transaction which involves selling the property at an amount equivalent to the mortgage owed, a short sale has become more popular in the last couple of months. Lenders, who previously looked at short sales as an easy way out for borrowers, are now looking at it as THEIR way out of a ballooning inventory of non-performing assets. With each passing day, more and more short sale approvals are being handed out and you could certainly be the next one to enjoy its benefits.


There are several benefits to a short sale including and perhaps the most important, is being able to prevent a foreclosure entry on your record .If the lender agrees to waive their right to file a deficiency judgment, you do not have to pay the difference between the sale price and mortgage balance. Yes, it is possible you may have to pay taxes on the difference but, after years of trying to solve your mortgage dilemma, you will finally be debt-free!

Obviously the road to a mortgage debt-free existence is not paved with gold and you will have to make sure you have done everything to obtain your lender’s approval. On your own, you would probably have a slim chance, but with a professional short sale Realtor to educate,  guide and even hold your hand; your chances will be greatly improved.

Go out and interview short sale Realtors and find one which has the knowledge, skills and experience to see you through this tough time in your life. Remember, you are not only looking for someone to help you with the paperwork but someone who will help you win this battle you waged against foreclosure!

New Fannie Mae Servicing Guideline – Will It Help Distressed Homeowners?


Early this month, the government sponsored enterprise Fannie Mae has released their new servicing guidelines as a response to the still large number of homes entering some stage of foreclosure. The problem is actually attributed to the communication gap between servicers and distressed homeowners. The new guideline will supposedly address this gap.

However, many experts and analysts are looking at the new guidelines as simply redundant. After all, it is the job of the mortgage servicers and lenders to make sure all possible options to stop foreclosure are explored for the simple reason the repossessed home will end up as a non-performing asset in their books.

Fannie Mae has also lengthened the foreclosure timeline for most states, which is, for the most part, good news. But again, lenders have yet to find a way to speed up their foreclosure process without making mistakes that could cost the homeowners their homes. And in some cases, extending the timeline is simply delaying the inevitable.

Another change included in the new guideline is the incentive offered to lenders and servicers for completing loan modifications or short sales. This is perhaps the most disturbing since these lenders are supposed to approve such transactions on the basis of merit and not because of monetary incentives. Again, it might cause problems in the future.

Short sales have always been considered to be the best option to stop foreclosure especially for homeowners with underwater mortgages, but it is actually a complicated process. This is perhaps why it is important to talk with a short sale Realtor to find out if a short sale is the best option for you to avoid foreclosure. If it is, a Realtor can help you prepare your proposal in such a way it would be hard for the lender to reject.

Underwater Homeowners Worried About Dropping Home Prices

Bad news concerning the housing market is certainly everywhere.

For starters, a report from S&P/Case-Shiller showed home prices declining by 4.2 percent during the first quarter of 2011. High unemployment rate is also driving more homes into foreclosure while job growth remains tepid. The number of foreclosure properties is at 2.25 million and at least 1.8 million homes are on the verge of foreclosure.

There is good news from time to time. Mortgage rates may be low but some people choose to rent because they cannot afford a home while others are just waiting for things to get better. Unfortunately, even the federal government is saying it could take another 2 to 3 years before everything stabilizes.

In the middle of all these problems are the underwater homeowners. Clearly, this group of homeowners is trapped in a situation in which one wrong move could be the end. Most of them have to choose between two options.

The first option is to wait out the storm. This is only advisable if you are expecting your financial situation to improve. If not, you are simply just waiting for the time when you can no longer afford to pay your mortgage because of one reason or another and your lender forecloses.

The second option is to pick up the phone and talk with a short sale Realtor. A short sale can offer you the following: sell your home to settle your mortgage debt and avoid a foreclosure entry on your credit record.

Choosing the second option is actually the easiest thing underwater homeowners can do. What happens next would involve several months of waiting until the short sale proposal is approved. It could still go either way but at least you tried.

Of course, you should know your chances of surviving this particular mortgage problem if you have a professional Realtor by your side who will not only hold your hand through the worst, but also guide you toward the other side.

The Importance of Working with a Short Sale Realtor


In most major cities, you will observe a growing demand for rental homes. Such demand will eventually translate to rental prices increasing. If you are worried about the amount of money you have been spending on rent and feel you are ready for home ownership, then it is time to check out the short sale market.


It has been established how short sale properties are many times better priced than regular home listings. The one thing you need to look at is whether or not you should work with a short sale Realtor. Your decision actually depends on how you see these Realtors. Do you see them as paper shufflers, or do you consider them as your one reliable connection to the world of real estate.


Many think short sale transactions are simple and straightforward. Make an offer and wait for the offer to be accepted. But you will be surprised at how much you need to learn to ensure a smooth-sailing transaction.


Having a short sale Realtor beside you will allow you to navigate through the world of real estate without worrying that your interests will be compromised. In fact, Realtors ensure your best interest is protected.

Working with a professional will also guarantee all your decisions are based on facts since you can expect your Realtor to provide you with useful and relevant information. He can also keep you updated and make communication between you and seller more open.


You should think of your Realtor as a friend who has your back and will be there if problems arise. Deciding to work with one will improve your chances of becoming a proud homeowner. If you value the relationship you build, you will benefit from it for as long as you want.

Revisiting Short Sale Basics


If you check the news lately, you cannot help but see how distressed properties sales are getting a hefty share of the market. In fact, for the first quarter of 2011, 28 percent of the total home sales activity involved properties in distress including short sale.

For those of you who are thinking of investing in real estate and attracted to the benefits offered by short sale homes, you should at least refresh your memory with these short sale basic information.

Who Dictates the Sale Price?

The price of the property is actually the amount agreed by both the seller and the buyer and established during the bidding and negotiation part of the sales transaction.  Some people make the mistake of thinking the lenders dictate the selling price. This is not the case. Their decision only involves accepting or rejecting the amount in the short sale proposal. This is perhaps why it is important the seller justifies the amount in their proposal to make it easier for the bank to accept it.

There is also what is referred to as approved short sale, wherein the bank has already revealed the amount they will accept. Buyers usually look for these short sale transactions since they are almost always quick.

How Long Does Short Sale Take?

Short sales, despite their name, take time. If you are the seller, make sure all documents are prepared properly and you are working with a professional short sale Realtor to ensure everything goes as smoothly as possible. On the other hand, if you are the buyer, you have to be patient. You might even be tempted to look at other properties. It would be wise to wait a while.

How to Ensure Closing

Some buyers make the mistake of not preparing the mortgage paperwork once escrow has been opened resulting to the delay in closing. It would be smart to make sure everything has been prepared a couple of days before the actual closing date. If there are problems, you should ask the bank for an extension but do this as soon as you know you are going to be late and not on the actual closing date.

Depending on your preparedness, a short sale can be simple or problematic. So, it is really up to you.