5 Steps for a Successful Short Sale

Solving Your Mortgage Crisis Just Got Easier

5 Steps for a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction. 

First, do you qualify?

You must:

1. Have a verifiable hardship, like unemployment, medical bills, or relocation
2. Must have a monthly income shortfall
3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency 

If you meet these qualifications, follow these five steps to a successful short sale:

1. Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale
2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months
3. Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford
4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency
5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved 

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call The Elite Asset Management Team; 505-798-1000. We can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

www.AvoidNMForeclosure.com

Contact Pete or Sean RE/Max Elite 8300 Carmel NE Albuquerque, Nm 87122 505-798-1000

Lenders Primed for Short Sales in 2011

Short sales are a terrific option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Lenders are projected to incur losses as severe as 85 percent in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!

It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.

In fact, in the Albuquerque area, short sale transactions represents between 7% to 10% of all transactions in 2010.

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. The free, downloadable report on this website talks more about working with your lender, and details all the foreclosure alternatives available to you.

Call Pete or Sean today about our free foreclosure report; I can help you develop a plan to work with your lender and avoid foreclosure.

Albuquerque Market Forcast

Yesterday the team had the opportunity to listen to the Chief Economist from the National Association of Realtors speak about the upcoming real estate forecast and economic forecast for 2011 and beyond. Dr. Yun explained the current economy and how it will affect the real estate market for the upcoming year and beyond. Currently, we are selling homes at the same level as 2000. Some of the main forces is unemployment, overbuilding of new homes and the increase in default mortgages. One example of the change over the last couple of years is in 2004 there were over 5,000 single family building permits in Bernalillo County. In 2010 there are only 186 single family building permits in Bernalillo County.

With all the doom and gloom there are some small signs of slow economic recovery. In 2010 there has been 1.5 million jobs added. Also, interest rates have been low and will continue below 5% through 2011. There are estimates that there will be 5.4 million homes sold in 2011, which is still at year 2000 levels. There is a forecast for unemployment rates to start to decline to 8% by 2012.

Lastly, Dr Yun stated that the Rocky Mountain States have in the past shown high levels of growth in population and this equates into a demand for homes. In the next 3 to 5 years we can expect the Rocky Mountain States to continue to grow and continue to help improve the housing market in the Albuquerque area. The rates for foreclosure are lower in the Albuquerque area and we will begin to see signs of the rate of foreclosure to decline by the end of 2011 and through 2012.