The right thing for homeowners in distress
You can be a hero – and it pays! Short sales are the right thing for homeowners in distress.
According to current FNMA/FHLMC guidelines, a party with a short sale on their credit report may qualify for an insured home loan after two years as compared to the FNMA/FHLMC guidelines for a party with a foreclosure on their credit report. They may qualify for an insured home loan after five years.
In addition, a successfully negotiated short sale resolves the problem for the homeowner by potentially eliminating deficiency judgments or recourse issues from junior liens hanging over their heads.
Help someone out of financial distress
Educate and inform. Many homeowners don’t realize the options available to them. A short sale may have never crossed their mind. Advise them of the impacts of foreclosure on their credit and what the benefits of a short sale may be. Refer them to a qualified tax consultant to assist them in their decision-making. Inform them of the options, educate them on the outcomes and let them know that you are available, as a Realtor®, to assist them, even if you don’t ultimately list the property.
More challenging and time consuming
Increased paperwork, short sale amendments, lender responsiveness and acceptance issues, waiting periods and delays all make short sales more challenging and frustrating for sellers as well as buyers.
Gain expertise in short sale processing, set guidelines and learn from your peers using the PropertyRadar Community, to make the most of this growing opportunity.
Excellent reference builder
Your help won’t soon be forgotten. Successful short sales are great reference builders. You make clients for life. When someone you’ve helped in distress is ready to buy again, in two to five years, they’ll come to you and refer their friends.
Reduce lender loss
Lenders are taking increasing losses on properties sold at auction. Junior lien holders stand to lose their entire investments. Short sales help to mitigate losses for both the borrower and the lender by reducing discounts and finding equitable arrangements before the auction sale. There is also a considerable amount of pressure from the government to avoid foreclosure by approving short sales.