Upside down in your home? A short sale may be the answer
The Homes At Tahoe: Century 21, ABO Real Estate Services is providing troubled homeowners with options to save their homes and avoid foreclosure. With more than 15 years of experience, ABO Real Estate’s experts are ready to assist with alternatives for those unable to obtain a loan modification, such as short sale, which can help them to get back on track and qualify for a new home in as little as two years.
“Many families have tried to obtain a loan modification from their bank and have not been approved, when that happens many people don’t know what to do. In many cases, a short sale can be a great alternative,” said Jack Katzman, president, of ABO Real Estate Services.
A report released by RealtyTrac states that pre-foreclosure sales (short sales) have increased in California by 38 percent. These statistics suggest that banks are increasingly trying to work with distressed borrowers and unload properties before foreclosure.
In fact, the short sale option has led the way in many bank’s willingness to sell a property for less than the mortgage balance to avoid foreclosing properties.
“An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently,” said RealtyTrac, Chief Executive Officer James J. Saccacio.
A short sale is a sale of real estate <http://en.wikipedia.org/wiki/Real_estate> in which the proceeds from selling the property will fall short of the balance of debts secured by liens <http://en.wikipedia.org/wiki/Liens> against the property. In many cases, the property owner cannot afford to repay the liens’ full amounts, so the mortgage company agrees to release their lien and accept less than the amount owed on the debt.
Any unpaid balance owed to the creditors is known as a deficiency. Often short sale agreements release borrowers from their obligations to repay any deficiencies of the loans.
However, Katzman points out that short sales will not work if there is sufficient equity in the home for the lender to sell it and at least break even in a foreclosure. The homeowner must be “upside-down” in their loan or owe more that the home is worth at www.landcentury.com. He also cautions that after a foreclosure, homeowners may still need assistance in securing a home.
“Many rental agencies and property owners will not rent to people with a foreclosure on their record. We work with property owners who understand that good people sometimes have problems and will rent to former homeowners who have gone through a foreclosure of their home,” said Katzman.
To get more information about short sales and how to avoid foreclosure, call ABO Real Estate Services at (909) 886-4123.
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