Upside-Down Homeowners (Homeowners that owe more to their Lender than their home is worth) are common in Reno/Sparks. I’m sure many of your neighbors are upside-down. Luckily most do not need to move right now, but for those of you that must move for family, health, work or unaffordable monthly mortgage payments. I am here to help.
One of the options for such a Homeowner is called a Short-Sale. A Short-Sale is when a Lender (or Lenders) agree to accept less than they are owed for a mortgage. Lenders are motivated to agree to Short-Sales because it is common for their net loss to be less with a Short-Sale than a Foreclosure. The Foreclosure process can be quite expensive for a bank and there is no guarantee they would be able to sell the house for any more than what a buyer will pay while it is a Short-Sale Listing. Short-Sales have become more common over the last few years. In fact, just about ever Lender now has a Short-Sale Department that only deals with these negotiations. In a Short-Sale the Lender will cover all the costs related to the selling of the home including the real estate commissions. Lenders realize that to get the best price for a home, it needs to be marketed by a Real Estate Professional (more specifically a Realtor) and are willing to pay both the Listing and the Selling commissions to make sure the transaction is handled professionally and the home gets maximum exposure. On occasion, Lenders will require a contribution by the homeowner in order to agree to the Short-Sale, but in many cases the homeowner walks away without putting another penny towards the Home.
Another option for a Homeowner is Loan Modification. There has been lots of talk in the media regarding Loan Modifications…and for some they are a great option. However, many homeowners simply don’t qualify for a Loan Modification or their Lender is unwilling to modify the loan enough to make it affordable. Unfortunately, the hope for many homeowners - a “principle reduction” - is very rare. More common are modifications that add the default payments to the end of the loan and minor interest rate reductions. Sadly, statistics show that most Homeowners that accept a Loan Modification are in default again shortly afterward.
What makes my Short-Sale program different from any others?
• I will not obligate any homeowner to contribute to a Short-Sale transaction or incur any financial debt in order to market your Home and negotiate the Short-Sale with the Lender. If the Lender requires either from the Homeowner, the Homeowner will reserve the right to decline. I’ll put that in writing in the Listing Agreement.
• I encourage you to continue to pursue a Loan Modification while we are marketing your home for sale. If you are interested in a loan modification, I will help you provide the information to the Lender for the Loan Modification Review and reserve your right to accept a Loan Modification and cancel the listing anytime prior to receiving offers on the property. If you accept a Loan Modification and we cancel the Listing – there is absolutely no charge for any of my time or services. I’ll put that in writing in the Listing Agreement.
• I work for locally owned Prudential office.
• I have experience working with Buyers and Sellers of Short-Sale and Bank Owned property. Negotiating a Short-Sale can be time consuming and frustrating. It requires a business approach and a skill set that most real estate agents simply don’t possess.
If you have already received a Notice of Default from your Lender – please act immediately. This notice is the beginning of the Lender’s Foreclosure process. There is still time to mitigate damage to your credit and gain some control over the process…but the clock is ticking.
To find out more about the Short-Sale process and your individual situation please or give me a call at 775-200-0658. I welcome the chance to discuss your options.
