Welcome > For Sellers > Short Sale Information ...

What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.  Together, you can identify all possible options and, when possible, a CDPE can assist you in the quick execution of a short sale transaction.

Reasons to avoid Foreclosure:

1.) The homeowner will always have to disclose they have had a foreclosure on any mortgage application.

2.) Credit scores will be lowered by 300+ points affecting the ability to get a car, apartment, credit cards, etc.

3.) A foreclosure is the one credit report item that is almost impossible to be “repaired”.

4.) Military and government security clearance could be at risk with foreclosure.

5.) Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.

THERE IS A HUGE DIFFERENCE BETWEEN LIFE AFTER FORECLOSURE AND LIFE WITHOUT FORECLOSURE!

What is a CDPE?

A Certified Distressed Property Expert^® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.

Susan & David Holden
Broker/Owners CDPE
RE/MAX Preferred

Tax Considerations >Tax Reform Owning a home still offers significant tax benefits. If you are renting, it may be a good time to sit down with a professional real estate agent to see how much you can save each year by owning your own home. You save in two ways when you purchase a home. Even though most interest deductions have been phased out, home mortgage interest and state and local property taxes can be deducted. The interest on a home equity loan may also be deductible. Your real estate agent can show you how these savings will apply in your situation. You may be pleasantly surprised when you compare the tax savings you will receive as a result of owning your home, and you will build up equity as your home appreciates in value! Also, first-time buyers will see expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, allowing penalty-free withdrawals to purchase a home in the Taxpayer Relief Act passed in August, 1997. Consult your tax advisor for your particular circumstance. See All Tips In The "Tax Considerations" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What real estate board game became the best-selling game in America just one year after it was created? A  Charles B. Darrow invented Monopoly in 1934, to cheer himself up while unemployed during the Great Depression. Monopoly is now the most popular board game in the world and has sold over 200 million copies. See More Real Estate Trivia >

Susan and David Holden Broker/Owners RE/MAX Preferred 1668 Windham Way - Lakepointe Centre O'Fallon, IL 62269 Susan Mobile: 618-531-4926 David Mobile: 618-531-4887 DavidHolden@remax.net SusanHolden@remax.net Thank you for visiting us at www.ofallonrealestate.com we look forward to assisting you in your home buying or selling needs. We believe in a "hands on" approach to Real Estate, this is why you will deal only with us during your transaction. This allows us to manage all aspects and react to changes quickly. Please do not hesitate to contact us for more details www.OFallonRealEstate.com is brought to you by Susan and David Holden, real estate for O'Fallon, Scott Air Force Base and Belleville, Illinois Read Susan and David Holden's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge