Homeowners

About one in four homeowners in America are currently underwater on their mortgages and foreclosures are at an all time high.  Declining home values have left many homeowners unable to sell their homes because they owe the bank more than their home is worth.   There is hope, however. A process known as the "Short Sale" is allowing homeowners to get out from under their mortgages and allowing them to get a fresh start.

If you are a homeowner facing difficulty making your mortgage payments, have loss of income, or owe more than your property is worth, Short Sales Access will show you how you can use short sales as an exit strategy, possibly avoid foreclosure, minimize damage to your credit and get back on your feet.

Short Sales is designed to help clients possibly avoid forclosure by assisting them in processing a short sale of their home. The services are not designed with the intent of removing the client's home from foreclosure status.  Short Sales Access are not foreclosure specialists and will not engage any client who is currently already in a "foreclosure status" with the lender.  

Qs:  What is a Short Sale?

Ans:  According to Wikipedia, a short sale takes place when the lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss. In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.  In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department.

The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain as a potential liability for the Mortgagor/ Borrower. The bank's opportunity of pursuit of a deficiency judgment will vary from state to state

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation. An important thing to know about a short sale is that it has to be handled by a real professional who knows how to work these deals. Most REALTORS® don't handle short sales.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure.

A bank will typically determine the amount of equity (or lack of), by determining the probable selling price from a Broker Price Opinion BPO or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than working with lien holders to try and get a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Qs: How does the short sale process work?

Ans:  As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a BPO (Broker Price Opinion) or order an appraisal.  Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or will allow it to go through the foreclosure process.

Once a property is short saled, the bank or lender will try to get rid of the property by either selling it directly themselves or through an established broker.

Qs:  How Can Short Sales Access Help homeowners?

Ans: Short Sales Access can help:

• Protect your credit from further degradation
• Present a win-win solution to the lender and try and get favorable terms
• Minimize your debt obligations
• Allow you (the borrower and your family get a fresh start)
• Expedite the process with a timely resolution