Due to declining values and other reasons, the real estate market is literally being turned upside down, with many homeowners owing more on their homes than what those homes are worth in today's marketplace. These distressed homeowners are confronted with the agonizing decision of how they should proceed… foreclosure or short sale?
Foreclosure and the short sale process have caused a lot of confusion in the market with homeowners and even with realtors and real estate attorneys. “There is definitely more misinformation than information on this subject,” says Leah Trissel, Washington Realtor.
What is a Short Sale? A “Short Sale” is a relatively new phrase to many homeowners, but this type of sale has been part of the real estate market for many years. A homeowner is “short” when the homeowner owes an amount that when combined with closing costs and commission is higher than current market value. A Short Sale occurs when negotiation is entered into with the homeowner’s lender to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is “sold short”. With a successfully-negotiated short sale, the seller won’t get any money at closing, but they will avoid the emotional and financial toll a foreclosure will cause. In addition, the seller won’t have to come to closing with any money, and their credit won’t be destroyed, as with a foreclosure. This sounds easy enough, however, it is an involved process that takes a lot of knowledge, time, patience, good communication skills, organization, and professionalism on the part of the realtor handling the process.
Leah Trissel is a CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE). This means she understands the short sale and foreclosure process thoroughly. She works with buyers, sellers, and distressed property owners. Leah can quickly assess any situation and be able to suggest which strategy is best for a homeowner to avoid foreclosure. She has a host of other professionals she works with she can refer to, if need be. It is invaluable to find a real estate agent who has the capability and knowledge to quickly sell your home in these devastating situations. “In today’s market, agents cannot simply place a For Sale sign with yesterday's prices in a front yard or hold an open house to sell a house,” states Leah. "This market demands more up-to-date knowledge and action from your realtor than ever before."
There is an increasing need for skilled and knowledgeable agents to work with homeowners who are in over their heads and want to make a short sale to avoid foreclosure or even bankruptcy. Unfortunately, many of the short sale transactions are being handled by untrained salespeople who are doing more harm than good because they are getting nowhere with lenders that are inundated with similar files.
When you are dealing with financial distress, selling your home is a totally different procedure. Leah has the tools, information, and education needed to help distressed homeowners understand their options as they face the threat of foreclosure. She attended an intensive class to acquire the CERTIFIED DISTRESSED PROPERTY EXPERT designation and attends weekly webinars and other classes to stay abreast of this ever-changing market. She has consulted with real estate attorneys and tax consultants, and has negotiated with the lenders who hold these troubled loans.
To most realtors, handling a short sale is an unfamiliar thing. Many realtors don’t want to bother with them because they’ve heard so many horror stories. It can take upwards of 60-90 days for lenders to give approval for a short sale. Not every homeowner can do a short sale. Sellers must be able to demonstrate a financial hardship like job loss, reduction in pay, mounting medical bills, etc.
Please contact Leah if you are a local homeowner in financial distress. Leah can quickly help get you on the right path to recovery for the future during these difficult times.
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