Monday, August 22, 2011

Hello Monday and The TRUTH about Short Sales



Hello Monday. Hello to the last week of Summer Vacation.


 Hello to new routine. Hello bank negotiations. Hello to reaching an agreement before time runs out. Hello to education. Hello to price has dropped now bring me an offer.




 Hello to splash park with friends. Hello demolition derby and a stay at the farm.



The TRUTH about Short Sales..



Disclaimer 1: What I say today could change by tomorrow. That is just the nature of the business. One reason I loved my job in the beginning, no day was ever the same. If you have anything to add please leave it in the COMMENTS SECTION, it works now. If you have any questions or need  help with you real estate needs, don't hesitate to call me (801) 699.0824. Yes, I just put my contact info on my blog.....

Shall we begin??

Lets define a short sale. (Thank you Wikipedia.)

Short Sale : short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any defiencies of the loans, unless specifically agreed to between the parties.

A short sale is often used as an alternative to foreclosure, which mitigates additional fees and costs to the both the creditor and borrower. A short sale will often result in a negative credit report against the property owner, however it is less damaging than a foreclosure report.
Common Myths:
  •  I can stop making my payments while doing a short sale and they (being the investor/bank) can not foreclose on my house. WRONG!! WHILE DOING THE SHORT SALE IF YOU ARE NOT MAKING YOUR PAYMENTS THE INVESTOR WILL START FORECLOSURE PROCEEDINGS AND THEY WILL FORECLOSE ON YOUR PROPERTY. ULTIMATELY YOU WANT TO GET AN OFFER INTO THE SHORT SALE DEPARTMENT BEFORE THEY FORECLOSE. 
  • I can strip the house and then let the bank come and get it. I put the money into it I need to get it out. OUCH!! BANKS ARE STARTING TO TAKE PRECAUTIONS FOR PEOPLE VANDALIZING THE PROPERTY. YEP, THAT'S RIGHT. WHEN YOU STRIP THE PROPERTY YOU ARE VANDALIZING IT. THERE ARE LAWS AGAINST VANDALISM.
  • My friend who works at a bank for a lot of years says that I don't have to pay anything and they can't ask me to and they can't come back after me. I am scott free!! WHILE MOST BANKS WON'T COME BACK AFTER YOU. THEY CAN. UP TO 7 YEARS LATER.THERE CAN BE PENALTIES FROM THE IRS. IF YOU HAVE MI BE PREPARED. THEY WILL USUALLY ASK FOR A PROMISSORY NOTE OR ASK YOU TO BRING CASH TO THE CLOSING.
  • In 30 days this will be all done and I  can move on to the next chapter in life. SHORT SALES IN UTAH TAKE A LONG TIME. FOR MANY REASONS. THE BANKS ARE DIFFICULT. THERE IS MORE THEN ONE PERSON WHO HAS TO ACCEPT YOUR SHORT SALES. THEY ASK FOR A LOT OF PAPER WORK. MANY TIMES THEY ASK FOR THE SAME PAPER WORK OVER AND OVER AGAIN. THEY WILL ASK FOR UPDATED PAY STUBS AND BANK STATEMENTS THROUGH OUT THE WHOLE SHORT SALE. EVEN IF THE SHORT SALE TAKES 411 DAYS. BE PREPARED TO CONTINUE TO OFFER THESE THINGS.  ALSO, BUYERS ARE NOT FULLY COMMITTED TO THAT ONE PROPERTY. IF THEY SEE ONE THAT SPARKS THEIR INTEREST MORE THEY CAN AND USUALLY WILL BACK OUT OF THE CONTRACT AND MOVE ONTO THE NEXT PROPERTY. LEAVING THE SELLER HANGING UNTIL THE NEXT  OFFER COMES IN.
  • I am going to call the negotiator and give them a piece of my mind. This will make them really move and just accept the offer that was placed in front of them. NO! BEING AGGRESSIVE AND RUDE IS NOT GOING TO SOLVE ANYTHING. THE PERSON ON THE OTHER LINE IS VERY OVERWHELMED AS WELL. THEY HAVE A LARGE WORK LOAD. ON TOP OF THAT THEY HAVE NO PERSONAL ATTACHMENTS TO YOUR PROPERTY. THEY WILL PUSH YOU TO THE BACK... THEY ARE ONLY HUMAN AND GETTING PAID $10.00 / HOUR. PLEASE MAKE SURE YOU DOCUMENT EACH TIME YOU TALK TO THE BANK. PLEASE STAY IN CONTACT WITH YOUR BANK. IF THEY CALL... ANSWER IT. AVOIDING THEM DOES NOT MAKE THE SITUATION BETTER.
Short sales can be complex. They can be a very long process. You need someone to help you navigate the whole process. Even if you are a buyer. There are extra addendums that come along with short sales. Legalities and negotations.... DON'T GO AT IT ALONE, don't leave yourself vulnerable. Hire a good, educated Realtor, such as myself!!

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