MORE ON SHORT SALES – #2 1/13/2009
MORE ON SHORT SALES – #2 1/13/2009
Current thinking dictates that Short Sales are the answer to non liquidity in the housing market. They are a solution but, they are not risk- free. They can provide a vehicle to allow people to side step a foreclosure, but, there are some strings attached. In many Short Sales, the lender requires the recipient of a short sale transaction to sign a document stating that at some later date, they would have the right to pursue the short sale recipient for a default, meaning that if the lender forgave $30,000 in a short sale transaction, they would have the right to pursue the recipient for that amount of money in the future.
On the positive side, a Short Sale is a better solution than a foreclosure since it is not as negative a blemish on the borrowers credit standing. I surmise the difference is that the lender and the mortgagee are working together to remedy a bad situation with the mortgagee accepting some responsibility and assisting the lender . While, in the case of a foreclosure, the mortgagee is not taking personal responsibility to remedy the situation, nor helping the lender solve the problem.
Should you be in a situation where a foreclosure or the loss of your home is eminent, the first, most important thing to do, is contact your lender and explain the situation. I can’t emphasize that enough. Lenders today are used to dealing with these situations and are willing and able to lessen the blow, or forestall a foreclosure.
If you need information or help in the Short Sale process, please, CALL the Schaller Family Realtors. We are fully schooled in the short sale process and have guided many families through this tangled process. We would consider it a privilege to assist you, our family to yours.
Schaller, Family Real Estate
Kane, Aimee, Lil or Don Schaller
Alltruckeehomes.com
800-660-0903
Dickson Realty,
Owners
