Jim Dvorovy, REALTOR
Cutler Real Estate
203 Applegrove NW
N. Canton, Oh 44720
They are getting better but it's a learning process. They were all swamped when the foreclosure crisis hit. Now they are getting better because they really DO NOT want to foreclose and take the house into inventory. They are realizing that they will get more of their money back if they sell it "short" than they will after months of waiting then marketing the home after the foreclosure.
One of the most important things you want to find out is WHY. Why is it going short sale. In order for that seller to be eligible is that it has to be a "hardship". it has to be for a good reason; Health, Death, Loss of Job or income, Divorce, etc. Some good reason. Not just because they decided to buy a bigger house or something like that. Ask why, what is the hardship reason.
Seller's have to provide a long list of financials, statements, letters, ect. If they are not willing to do the leg work then there is little the realtor can do. Find out too are the sellers cooperating and working closley with the Listing Realtor.
Good Luck...they do work. The seller and the Listing agent must work diligently to get it done. You can gert agreat house for a great price if you are willing to work at it and above all be patient.
And technically, a short-sale is not a pre-foreclosure. Not by my understanding anyway....
Joyce, if you don't have a buyer's agent go find one and do it soon...
Once a homeowner stops making his mortgage payments, a lender may take anywhere from 2,3,4, or more months before they commence foreclosure proceedings. A lender is required to contact the homeowner by phone, in person or by mail to assess the homeowner's financial situation and explore options to avoid foreclosure. The lender must inform the borrower of the right to meet with the lender within 14 days and give the borrower a toll-free number for HUD-certified housing counselors. This requirement to contact borrowers behind in their payments only applies to certain owner-occupied residential loans made between 2003 and 2007. For most owner-occupied loans made between 2003 and 2007, a lender can file a Notice of Default 30 days after contacting the borrower to explore options to avoid foreclosure. The Notice of Default informs the borrower of the default. It must be filed in the county where the property is located and mailed within 10 business days to the borrower and others who have required notice. Three months after the notice of default, the lender may record a notice of trustee's sale setting forth the date, time and place of an upcomign trustee's sale. The notice of trustee's sale must be recorded, posted, mailed to the borrower and others, as well as published once a week for three consecutive weeks in a newspaper of general circulation. Up to five business days before the trustee's sale, the borrower may reinstate the loan by paying the missed payments plus allowable costs. After the reinstatement period expires, the homeowner still has the right to redeem the property by paying the entire debt, plus interest and costs (not just the arrearage) at any time before the bidding begins at the trustee's sale. California law allows a trustee's sale to take place 20 days after the posting of the notice of sale, but lenders usually wait 11 more days to help protect against any federal tax liens. At the trustee's sale, the property is sold at a public auction to the highest bidder and title is then transferred to the sucessful bidder by a trustee's deed.
(The information contained herein is believed to be accurate and is intended to provide general answers to general questions and is not intended as a substitute for individual legal advance. Readers with specific legal questions should seek the advice of an attorney.)
Patience is the key, if you have a good buyer's agent and they work with the listing agent it can happen!!!!!!!!!!!!!!!!!
Servicing Summit, Geauga,Portage counties in OHIO
A short sale means that a homeowner owes more on his mortgage than what current market values will net him. Short sales are not usually a way to "get a good deal", as most banks are looking for an offer that is close to "market value." However, if a home is in poor shape (due to the homeowner not having moeny for needed repairs and the everyday necessities of home ownership) it may be a way of getting a home at a reduced price that will increase in value once repairs and updates are accomplished.
The #1 factor a buyer must acknowledge is a short sale transaction takes PATIENCE. If you're in an apartment and need be out by a certain day, then a short sale is not for you, unless you have a Plan B regarding living arrangements.
Be prepared to be frustrated ... and then frustrated some more. Paperwork is oftentimes lost by the bank (due to shared fax machines and attrition by burnt out loss mitigation department employees).
And don't be surprised to have your offer rejected, even if it's generous. There are many reasons that banks say "no", one of which is that it isn't necessarily their decision, but the decision of "investor groups" who have backed (or bought) the original loan.
If you don't have a definite timeline and don't mind being patient, you can find a great house, so don't give up. I encourage you to give short sales a chance, as they are a good way to help out a huge segment of the country's under water homeowners. You get a decent home for decent money ... and they get out of a mess without a foreclosure on their record and no deficiency judgments most of the time.
Dee Nofziger Realtor
Certified Distressed Property Expert (CDPE)