You're familiar with a foreclosure, how about a short sale….

You're familiar with a foreclosure, how about a short sale….
 
Let’s start with some basics. What is a Foreclosure and what is a Short Sale?
A foreclosure is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. source- FindLaw, a Thomson Reuters Business
 
A short sale is one where title has transferred; where the sales price was insufficient to pay the total of all liens and costs of sale; and where the seller did not bring sufficient liquid assets to the closing to cure all deficiencies. source -The National Association of Realtors

 Some questions for you to consider:
•    Are you behind on payments?
•    Have you had a Loss of Employment?
•    Have you had an increase in Mortgage Payment?
•    Have you had an increase in Property Taxes?
•    Have you had a Medical Hardship?
•    Have you gone through a Divorce?
•    Do you have Little or No Equity in your home and think you are out of options?
 

We are a team of Real Estate Professionals who work with folks in these very situations.  There is no cost or risk to you.  If we are able to be successful in working out a solution with your bank, your bank will pay us a fee on your behalf.  It is important for you to know that Arkansas and Oklahoma have an aggressive foreclosure process, so time is very much of the essence.  Please call today for a free and confidential consultation…we look very forward to working with you!
Keith Meador @ 479-719-2644 or wkm56@sbcglobal.net

The foreclosure process is a drawn-out process that costs the bank and the homeowner more in time and money. Banks would rather have a trained, experienced real estate agent work with them and the homeowner to facilitate a Short Sale. The banks require certain documents, disclosures, letters, information-income tax, employment, income, and other personal information- calculations and addendums for the homeowner to be accepted into the short sale program through the closing of a sale to a 3rd party. In a Short Sale the proceeds of the sale are received by the bank as payment-in-full. A successful Short Sale will not have as devastating effect on a credit report as a foreclosure. A Short Sale will reduce a credit rating by 80-100 points and the individual cannot purchase a home for 18-24 months. Whereas, a foreclosure will reduce the credit rating be about 250-280 points and the individual cannot purchase a home for 5-7 years.
The news continues to report that home foreclosures continue to climb. According to RealtyTrac, a foreclosure listing firm in Irvine, CA, more than 860,000 American homeowners lost their homes to foreclosure in 2008. That’s more than double the 2007 figures. And, a total of over 2.3 million homeowners faced the prospect of losing their home to foreclosure. What accounted for the difference in the figures of 2.3 million people facing foreclosure and 860,000 actually losing their homes to foreclosure? A forbearance Agreement and a Short Sale are two methods of avoiding the foreclosure proceedings. A forbearance agreement allows the homeowner to work out a payment plan on the missed mortgage payments. This repayment plan is only for the missed payments and does not include their regular monthly mortgage payments. The homeowner then has two payments due to the lender. If the homeowner stays current with the two payments, they have succeeded in eliminating the need for the bank to foreclose.
 
A Short Sale is another method of eliminating the need of foreclosure. Banks are willing to receive less than the mortgage balance through a Short Sale and bypass the foreclosure process. A foreclosure is a costly process that is less attractive to the bank and has a harsher consequences on the borrower. Even though the banks follow strict Short Sale guidelines and procedures, this method is far better than a foreclosure.
 
When a Arkansas or Oklahoma family finds themselves facing the possibility of a foreclosure, they should make the first step in contacting a real estate agent trained in Short Sales. A confidential discussion in person or over the phone will begin the short sale solution. The King Realty Group has taken many steps to educate our agents on helping homeowners find a solution not just give in to foreclosure. The National Association of Realtors estimates that only 1% of Realtors are sufficiently trained to properly facilitate a short sale. In acknowledging this, we understand the importance of choosing the correct agent to facilitate a Short Sale.
 
There are two important points to remember: 1) Don’t give up hope if you are faced with the possibility of a foreclosure, there are options to consider, and 2) a Short Sale may be the best solution to satisfy the bank and to minimize the damage on your credit and more importantly your family.
 
 
Contact Keith Meador of the King Realty Group today to get more of your questions answered regarding the short sale (pre-foreclosure) process.
479-719-2644 or wkm56@sbcglobal.net