A short sale is a sale that occurs when the lender(s) agrees to take a price that is lower than the loan amount. This is put into place when an owner can see foreclosure coming down the road, whether it's from loss of income, need to relocate or any of the other reasons that a home can become a bank owned property for sale. Short sales are a common solution these days. It isn't a great answer for a homeowner's financial problems but it is still better than a foreclosure on a credit report. Both are damaging, but the short sale doesn't last as long.
The key to the short sale is early preparation. This is a resolution that needs the lender to be on board from day 1. Most lenders require an active listing contract with a broker and active participation in the preparation process by the broker. A short sale also requires cooperation amongst any second loan/equity loan holders. A clear accounting of the owner's financial condition needs to be prepared, a fair market appraisal will be ordered and the property needs to be marketed at a fair price.
In the North Conway NH area, which has plenty of foreclosures for sale, the best first step to take is to contact a trusted real estate broker that has experience with helping people through a short sale process. If you need help I am available to help you with this process. Contact me, Bill Barbin, at Badger Realty: 603-986-0385 is my cellphone #.
Sunday, February 1, 2009
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