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Short Sales in Big Canoe - Everyone Can Win!
By Margo Vallone | February 8, 2008
In the six years that we have lived and worked in Big Canoe as Realtors, until now we had never assisted a seller with a Short Sale. But, with the sub-prime debacle and the recent declining real estate market, I guess it is inevitable that most Realtors will eventually find themselves trying to help a customer avoid foreclosure by negotiating a Short Sale - a sale where the lender/bank agrees to accept less for the property than is owed on the mortgage.
Going through a Short Sale is unquestionably traumatic and painful for the seller, and it is a fairly complex process for the seller, buyer, their respective real estate agents, and for the lender. However, if the transaction is successful, ultimately everyone wins. Here’s why:
- The seller is able to avoid foreclosure, or possibly, bankruptcy, and his credit record will be less adversely affected, giving him/her a better opportunity to recover financially and emotionally and get on with life.
- The buyer will usually get a better price or “deal” than if she purchased a non-Short Sale property, and, as we all know, we are definitely in a strong buyer’s market.
- The lender or bank, while netting less than the amount they loaned on the property, will usually come out better financially than if they have to foreclose or if the borrower declares bankruptcy. Typically, it costs the lending institution $20,000-$30,000 just to go through a foreclosure and repossession process. They are also likely to net even less if the property is auctioned on the court house steps, or if the bank has to repossess it. Most banks don’t really want to be in the real estate sales business!
- The real estate agents representing the buyer and the seller win in two ways: 1. They have the satisfaction of having helped a seller (who may also be a friend) to get out from under the stress and the burden of being forced out of a home through foreclosure. 2. They are paid a commission by the bank for conducting the transaction, although the amount might be less than in a regular transaction.
So, although losing a home is always an unfortunate and sad event in my opinion, I prefer to focus on the positive aspects of a Short Sale, rather than on the negative results of the alternatives. Please see my related article, Big Canoe Short Sale-Hurry! Your comments are always welcome.
Margo Vallone 706-268-6426 MountainHomeResales.comTopics: All Posts, Big Canoe Real Estate |
February 8th, 2008 at 11:22 pm
How many short sales are currently available in Big Canoe or the surrounding area? Anything in Bent Tree?