Friday, February 8, 2008

Short Sale Pitfalls

Are you late on your payments? Is your ARM going to go up - soon?

PLEASE READ TO THE END FOR A RAY OF HOPE.



One way to search for relief is to try to do a "Short Sale" - that is, to put your home on the market and negotiate with your lender to accept less than the mortgage payoff so that you can get out of the loan, and the bank can avoid taking back your home through the foreclosure process.

This seems to be something that both sides could easily agree to do. THEN WHY ARE SO MANY SHORT SALES UNSUCCESSFUL?

There is no simple answer, but here are a number of reasons for the relatively low success rate on short sales.

1) The whole process is complex, consisting of too many decisions makers and to many steps along the way.

2) There are many entities that must approve the process. A no from any one stops you dead in your tracks.

3) There can be disagreement about the current market value.

4) The loss mitigation department can be UNRESPONSIVE. (Potential buyers will not wait too long, they tend to move on).

5) It is NOT always clear who to contact in the lender's loss mitigation department.

6) If there are subordinate lenders (2nd, 3rd, etc.), they may object to the terms.

7) What documents does the lender require? It is not always clear.

8) Intervening bankruptcy can shut down the short sale.

9) Many real estate agents do not know how to effectively conduct the process.


HERE IS YOUR RAY OF HOPE: SOME SHORT SALES CAN BE COMPLETED!


I cannot guarantee success. However, if you want investigate your options, please contact me, and we can talk about your situation.


I have an investor with an efficient process and the financial resources to improve the chances of success. Not all distressed property owners will qualify, but if you want more information, AND YOU LIVE IN THE GREATER DENVER AREA, I would be happy to discuss it with you.


You can go to my web site and contact me from there.

http://www.lomheim.com/

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