Short Sales - Solutions and Investing Opportunities
October 30, 2009 – 9:28 pmAs we near the end of a default cycle in the Real Estate market, there are a large number of unique opportunities available for those that are in need of assistance, as well as investors.
While foreclosures are still high, lenders are finding new ways to prevent an unmanageable increase in their REO portfolios. Initially, the options they selected were modifications, but these are also proving to fail in many cases. Because home prices are often lower than what is owed for those that fall behind, lenders are now becoming more open to the short sale alternative.
A short sale is defined as a sale of property by an owner in which the lender(s) agree to take less than what is owed. Historically, lenders have opposed this practice, as they felt as if the property value at a foreclosure sale would generate a better return. This school of thought is no longer part of the majority.
As a homeowner, if you cannot afford your payments, seeking a short sale may be a viable alternative to enduring the costs and embarrassment associated with an actual foreclosure. For investors, this is a great way to capture properties before the foreclosure fees are built into the REO sales price.
The key to obtaining solid short sale assistance is a good Realtor that is trained in this area. They will know how to help you negotiate with the lenders and other lienholders that impact the property. I recommend seeking out someone in your community to work with that holds the designation of Certified Distressed Property Expert. These individuals have received special training in dealing with short sales and other solutions for the deflating market conditions.
Recently, I had the privilege of discussing this option with Renee Hediger, who is a Realtor holding the CDPE designation at RE/MAX DFW Associates, Inc. When I have questions on this topic, she will be someone I seek out for advice.
Renee can be reached:
972-393-9656
reneeh@rmdfw.com
If she doesn’t service your area, I am certain she will help you find someone that can help.
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