Real Estate Short Sale - Real Property Short Sale Helps Property owners Prevent Foreclosure

Banks sometimes offer real estate short sale deals to people who are unable to continue paying home loan installments.

Florida, FL (prHWY.com) July 6, 2012 - Florida, July 06, 2012 - Banks sometimes offer real estate short sale deals to people who are unable to continue paying home loan installments. With this type of deals, mortgage loan providers agree to accept than the outstanding balance in exchange for a quick sale. Although short selling can provide individuals with financial relief, this strategy may not be the best solution.

Getting real estate short sale consent is a complex and long process. Borrowers who have received a foreclosure notice are ineligible for this alternative. Additionally, banks do not allow house owners who possess accrued home equity or own financial assets that could be sold to cure mortgage arrears to enter into a shortsale deals.

Short sales are handled by each lender's loss mitigation department. A loss mitigator is assigned to work as a mediator between borrowers and lenders. Loss mitigators do not make final conclusions regarding any type of lender transaction including deed in lieu of foreclosure, mortgage refinance, forbearance agreements or loan modifications. The main duty of bank loss mitigators is to keep bank losses at a minimum by bargaining the best deal for the bank.

Real Estate Short Sale - Loss mitigators are in charge for many duties. With the influx of foreclosures, it can take two or more weeks before borrowers receive a phone call from their loan provider. Rather of allowing further delinquency on loan instalments, borrowers must be persistent in making contact with the bank.

If homeowners are unsuccessful in making direct contact with their lender, they should send a certified letter of hardship to the lender. Hardship letters should include the details of financial problems, along with any action taken to correct the problem.

It is important to attach a return receipt request to obtain a signature from the bank representative who received the document. Once the return receipt is received, attach it to the hardship letter and keep for future reference.

Each bank's short sale protocol is different and the process varies by lender. In addition to the letter of hardship, most banks require financial records such as earned wages and two years of income tax returns, along with a detailed list of income and expenses.

King Auctions - Most banks require homeowners to have a qualified buyer in place before granting real estate short sale approval. Some lenders will give borrowers time to list their home through a Realtor. Lenders will rarely allow borrowers to list the property as for sale by owner.

It can be difficult to locate a real estate agent willing to list shortsale properties because they must reduce their rate of commission to expedite the sale. Realtors must submit additional paperwork and abide by specific guidelines when listing distressed properties. Overall, the process of selling preforeclosure properties can be tedious and typically not profitable for agents.

Negotiating short sales can be intimidating for homeowners unfamiliar with real estate jargon and legal contracts. It is best to work with a real estate lawyer or short sale specialist to ensure proper protocol is followed. While this can be an additional expense, hiring professionals to negotiate and complete paperwork can save money in the long run.

It is imperative to understand the form of short sale offered through the bank. Many financial providers issue lack of conclusions which hold homeowners financially responsible for the difference between the financial loan balance and cost. Deficiency conclusions remain on credit history until fully repaid and can prevent debtors from obtaining any form of credit for years to come.

Some financial providers provide 'Payment in Full' agreements and accept the cost as transaction in complete toward the home home financial loan loan. Payment in complete allows debtors to walk away from the property without owing additional funds.

About the Author:

Real Estate Short Sale - Fortna Auctioneers & Marketing Group is a creative, innovative, people-oriented and technologically-savvy real estate auction firm. Our work consistently delivers personal satisfaction and success, resulting in mutual pride by all parties involved in the sale.

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Fortna Auctioneers & Marketing Group
26 E. Main Street * Annville, PA 17003
Phone: 717.867.4451
E-mail: auctions@fortnaauctioneers.com

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