Realtor Short Sale

A short sale is a real estate transaction that occurs when a homeowner sells a property for less than they owe on the mortgage, and the lender approves of the "short" payoff. A short sale is any property sale where the proceeds of the sale fall "short" of the original loan amount. It occurs when a seller sells a property for less than the balance of their loan, and the lender agrees to accept less than the amount originally due to them after all costs of the sale. Short sales are commonly initiated by distressed homeowners who are underwater on their mortgages (the loan balance exceeds the home's fair market value) and can't afford or otherwise keep the home but want to avoid foreclosure. But they can also occur if the accepted sale price on a home is higher than the mortgage but not high enough to pay all closing costs and commissions. In a successful short sale, the lender typically agrees to release the lien on the property in exchange for receiving the loan payoff. It may either forgive the "deficiency" or difference between the original loan balance and payoff or make a plan with the seller to settle the remaining debt. In either case, since the lender will be receiving a short payoff in such a transaction, it must agree to grant a short sale, and will generally only do so if it will benefit the lender's bottom line. If the lender doesn't view the homeowner or property as a good fit for a short sale, it may disapprove of the sale.

A legitimate short sale must be an arm's length transaction involving an unrelated buyer and seller and a bona fide lender. The following is an example of how the typical short sale unfolds:

· A homeowner has a home that's worth less than what they owe on the mortgage but must sell it as a result of hardship.

· The seller enlists an agent to discuss the short sale proposal (known in short sale terminology as the "short sale package").

· The seller's agent approaches the lender to assess their willingness to entertain the proposal and identify what the lender requires for a short sale.

· The seller works with their agent to price the home and put it up for sale.

· A buyer's agent makes the seller an offer on the property.

· The buyer and seller negotiate the offer through their Respective Agent

· The seller's agent accepts the offer on the seller's behalf, and both the buyer and seller sign it, subject to the lender's approval.

· The seller's agent presents the offer to the lender along with the short sale package including the signed purchase contract, a hardship letter explaining why the seller can't keep the home, and a narrative about the local market trends that support the Short Sale.

· The lender does a "bottom-line" review of the package and eventually responds with approval, refusal, or, in some cases, no response. If the lender refuses the short sale, they'll often state the net proceeds that would be acceptable for approval. In the case of approval, the lender sends a short sale approval letter to the seller in order to demand the loan payoff in return for releasing the lien.

· Escrow closes, and the proceeds are turned over to the lender, not the seller

· An underwater home: This means that a home has a fair market value that's less than the remaining balance on the homeowner's mortgage.

· A seller with a hardship: Most lenders view job losses, surprise medical costs, the homeowner's death, natural disasters, and military service as acceptable hardships for a short sale, to name a few examples. Whatever the hardship, it should serve as a clear impetus for the homeowner to sell "short."

· A willing lender: There's no point in proceeding if the lender refuses the possibility of a s...

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source https://dictionary.reverso.net/english-definition/respective+agency

Real Estate Foreclosure Specialist

Real Estate Foreclosure specialists help homeowners faced with having their house reclaimed by banks or other lending institutions due to non-payment of their mortgage. Some homeowners are unaware of available options when their house goes into foreclosure. A Real Estate foreclosure specialist can determine if the owner is eligible for a restructured loan to save the property. Real Estate Foreclosure specialists often review documents related to the sale of a foreclosed property. These documents include liens, inspection reports, appraisals and insurance policies. If discrepancies are found in these documents, the foreclosure specialist tries to resolve them for the property owner. This may require communication with the lender, municipal courts, home inspection services and insurance companies. Filing the necessary paperwork, ensuring that deadlines are met, verifying signatures, and attaching addenda are commonly part of the job. The specialist also reviews the client's mortgage payment history and financial documents, such as bank statements and investment portfolios. Real Estate Foreclosure specialists should have experience in foreclosure, bankruptcy and mortgage servicing. They should have knowledge of banking industry rules and regulations, and government regulations regarding foreclosures. Strong communication skills, proficiency in the use of computers and software, attention to detail, persistence and prioritizing are some of the skills needed. Since they deal with distressed homeowners, they should be strong problem-solvers with a calm, positive attitude. Real Estate Foreclosure specialist jobs involve dealing with many cases, so the ability to multitask and follow mortgage-servicing guidelines accurately is imperative. Landing Real Estate foreclosure specialist work requires at least a high school diploma and two to four years of related experience. Most Real Estate foreclosure specialist positions require at least an associate degree, along with completed coursework in real estate, lending practices and foreclosure law.

A Real Estate foreclosure specialist facilitates the process by which homes and commercial properties are reclaimed by banks and other lending institutions due to non-payment of mortgages. He may assist the homeowner, lender or new purchaser in the procedures or provide help to all three parties. Real estate companies and banks often employ real estate foreclosure specialists. A person in this profession may also offer his services on an independent, contractual basis. When a home or commercial property goes into foreclosure, the owner is often distraught and unaware of available options. A real estate foreclosure specialist frequently contacts the owner to determine if the person is eligible for a

restructured loan to save the property. He typically scrutinizes their mortgage payment history as well financial documents, such as bank statements and investment portfolios. If he discovers a viable option for the homeowner, he usually assists in filing the necessary paperwork to refinance the house or commercial property. The specialist frequently accompanies the owner to the lending institution to monitor the conversation between the borrower and lender. He is generally expected to make sure the terms of the new financing are acceptable and realistic. If the foreclosure must proceed, the specialist often continues to help the homeowner in getting through the upcoming processes with minimal anxiety. He frequently reviews documents related to the sale of the property. These typically include appraisals, liens, and inspection reports as well as business owner, homeowner and fire insurance policies. In the event discrepancies are found in these documents, the foreclosure specialist often attempts to resolve them for the property owner. This customarily requires him to communicate with the lender, municipal courts, home inspection services and insurance companies. If possible, he resolves the issues with the help and permission of the owner. Once the foreclosure proceedings are in motion, the specialist customarily tracks the progress of events. He generally ensures each stage of the procedures meets prescribed deadlines. Verification of signatures and the attachment of necessary addendums are commonly part of his job. A person in this position is normally required to be well informed on banking industry rules and regulations. He is also ordinarily expected to be knowledgeable of local and regional government regulations regarding foreclosures. Proficiency in dealing with legal proceedings involved in foreclosures is generally considered an asset for a specialist in this field. The majority of real estate foreclosure specialist positio...

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source https://www.cellapro.com/fine/real/estate/blog/55928/Foreclosure-Specialist-Real-Estate-Agent