Foreclosures have become a reality in many areas and Denver is not immune. They are predicted to continue throughout 2009 and 2010.
At CliffRose Real Estate we specialize in helping homeowners who have fallen behind in their payments and may be facing foreclosure. Even if you have little or no equity in your home, we can work with you to develop a plan to avoid foreclosure.
We will work with your mortgage lender to determine if a short sale is possible and then guide you through the entire process. At Cliffrose Real Estate, we do not charge any upfront costs and we do not get paid until we have successfully closed your transaction. Beware of foreclosure/ short sale companies that offer a solution, but also ask for a large up-front fee. If it sounds too good to be true, it usually is!
What is a short sale and how do we get started?
A short sale is most viable and attractive to the mortgage lender when the home owner is “upside-down” in their mortgage meaning the house is worth less than you owe on it. If that is your situation, a short sale might be the appropriate action for you. Here are the steps invovled in a short-sale transaction:
The short sale process can vary by lender, but it will generally work as follows:
1) The lender is contacted to discuss the possibility of a short sale and to determine the lender’s process for completing the sale.
2) The seller issues a letter authorizing the release of personal information about the loan and the property to the buyer, real estate agent, or closing agent.
3) The lender will review a settlement statement, which will indicate the proposed selling price, remaining loan balances and itemize all expenses, including real estate commissions and other fees and expenses associated with the closing.
4) The seller will complete a “hardship letter,” which will detail and explain all financial difficulties. Lenders will usually want to validate the seller’s financial situation by looking at bank statements, investment accounts, along with examining paystubs and other financial records. Don’t worry! We will help you put together everything you need.
5) The lender will then look to the broker to provide a price opinion by examining the condition of the house and the market value of comparable properties.
6) The lender will then want to scrutinize the purchase agreement to determine if all amounts are reasonable and the real estate commission is acceptable.
Because of the documentation required, the short sale process can be lengthy. But if done correctly, it can work well for all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report (along with potential bankruptcy), and the buyer hopefully got a good deal on a property.
Considering the complexity of the short sale process, you must be educated. The more educated you are on the process, the easier the transaction will be, and the better the impression you will make on the lender.
For more information on how to get started contact us at (720) 323-8433. We look forward to your call!
