How Do Banks Entice Short Sale Sellers

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Today I'm back with my short sale series to discuss how a bank will 'reward' you for cooperating in a short sale situation. This is a great question, because there are some incentives for you to cooperate with the bank in a situation like this.

At least 80-90% of the time, a bank will pay sellers anywhere from $1,000 to $3,000 to provide relocation assistance. This incentive is meant to help them move elsewhere, and it's also an incentive to prevent the seller from being destructive to the home prior to moving out.

This will often entice the former owner to cooperate and leave the property in good condition, and in most cases I believe the bank will give you $3,000, unless the home is a HUD home.
 
Hopefully this information has been useful to you, and I hope that you contact me with any questions regarding short sales or real estate here in Lane County.

I'm always happy to speak with you!

What Is a Deficiency in a Short Sale?

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Today I'll be answering more questions about short sales. I'll be answering this question in particular:

What will happen to the difference of what I owe on my property and what the bank will receive once my property is sold?
 
This difference is known as the deficiency in a short sale. Almost 99% of the time, this difference is completely forgiven. It's hard to believe, but banks will just let that money go.

However, if this is not the case, then you'll need to speak with a qualified mortgage professional and possibly an attorney. If you find yourself in this unfortunate circumstance, then please contact me and I would be happy to refer you to some of my preferred vendors that could offer you assistance.

As always, if you're in need of a good real estate professional in Lane County, please consider me your #1 option!

Protecting Your Credit in the Short Sale Process

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Hello and welcome to part five of my short sale series! Today, I discuss one of the biggest concerns people have when it comes time to have a short sale: their credit. 

Most short sales are the result of missed mortgage payments. After 30 days, 60 days, and 90 days, your creditor starts reporting to the Credit Bureau about how late you are on your payments. The short sale itself doesn't dramatically hurt your credit - rather, it's what you've done leading up to the short sale. 

In reality, once a short sale is complete, you can begin the process of repairing your credit. The day your short sale closes is the first day of the credit repair process. Credit seasoning means that the further you get away from the short sale completion date, the less it affects your credit! 

If you have any questions about short sales, or if you would like real estate assistance of any kind, give me a call or shoot me an email. I would love to hear from you!

Can The Length of a Short Sale Vary?

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Hello, and welcome back! For part four of my short sale series, I answer the question, "How long does it take to complete a short sale?"

Really, the length of a short sale is dependent upon many factors. It depends on your lender, the number of loans, whether there are complicated liens or IRS taxes attached to the property, among many other things.

We typically tell our clients the short sale process will take between three and six months. Somewhere in that window, we can take care of about 80%-90% of short sales in that time frame. However, on rarer occasions, we've done short sales that last years, as well as some that are wrapped up in a week's time. In other words, the process varies greatly depending on the particular situation!

If you have any questions about the process, or if you would like real estate assistance of any kind, don't hesitate to reach out to me. I would love to help you out!

Working With Your Lender On a Short Sale

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 Hello, and thanks for joining us for part 3 of my short sales series. Today we answer the question, "Will a lender allow me to do a short sale?" This is something many homeowners wonder about, so we're happy to answer it here.

About 99% of the time, your lender will allow you to have a short sale. There are a lot of reasons a lender might allow you to go ahead with your short sale - such as loss of job or income, divorce, and other significant reasons. However, most lenders aren't too terribly concerned about what the reason is - in other words, they are not too particular about what the exact reason is for your short sale. 

The bottom line is this: if you're likely to become delinquent on your mortgage payment, lenders are usually lenient about you having a short sale. This is because they have two options: they can either foreclose on the property or cooperate with you by allowing a short sale. At the end of the day, lenders save a lot of money by allowing you to have a short sale, instead of foreclosing. In other words, it benefits them as much as it benefits you.

Thanks for joining me today, I enjoy keeping you informed about our market! If you have any questions, or if you need real estate assistance of any kind, don't hesitate to reach out to me. I would love to hear from you!