This is an article titled Fearing Foreclosure?  Consider  a Short Sale that I found in the Broker Agent News…it is a great article, full of great info on Short Sales. 

Below find a short summary of the article written By Bobbi Dempsey.  If you need more, click here to read Short Sale Can Prevent Foreclosure in its entirety

If you are one of the many homeowners who have fallen behind on your mortgage payments and you don’t see any way to avoid foreclosure, a short sale may offer you the least painful way to resolve the situation.

What’s in it for a seller?
Obviously, the ideal scenario would be that you magically catch up on your mortgage payments and keep your home. But for an increasing number of Americans, that is not a realistic possibility, so it’s to your advantage to take an active role. This is what a short sale is all about — resolving the problem, as opposed to simply hiding from your lender and hoping the issue will go away or, worse, walking away from the property.

Two short-sale killers
Before you even start considering getting involved in a short sale, there are two situations in which an attempt at a short sale is almost certain to fail.

•	No default on loan — Lenders almost never will accept short sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.
•	Bankruptcy — If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy, because negotiating a short sale is considered a collection activity and collection activities are prohibited in bankruptcies.

The lender’s motivation
Why would your lender let you walk away from the home and forgive the shortfall on your loan? To save time and money. Foreclosures are expensive and time-consuming for lenders. Once the lender realizes that a foreclosure is inevitable, a short sale may seem like the lesser of two evils. Plus, short sales help the lender look good on paper — the property was never listed as an actual foreclosure, which helps the lender’s numbers.

By Bobbi Dempsey • Bankrate.com 

Related Links to help Sellers Sell
Advertising Your Home | Click here
The more your home is advertised, the more people will know it’s for sale, which increases the chance of it being sold quickly. What method of advertisement do you use? Discover what methods we find most productive, maximize on the exposure of your home.

How To Sell Your Home | Click here
There are nine steps in selling a home. If you are one of the many having problems selling your home then this article is for you.

More Ann Arbor Area Short Sales and Foreclosure Info
Ann Arbor Short Sales
Distressed Sales on Ann Arbor Real Estate

 

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