Foreclosures And Short Sales In Southern Oregon

Foreclosure is about the worst thing that can happen to your credit and many times is followed by bankruptcy. Not to mention the uncontrollable aspects of dealing with the bank on their terms. By entering into a short sale with an experienced consultant you put the control back in your hands. A short sale allows you to have experienced professionals on your side who can effectively negotiate with your lender in order to complete the transaction and get you back on track. Once you have decided that you can no longer afford to make mortgage payments, you are in a race against time before the bank starts foreclosure proceedings against you. By listing your Real Estate with an experienced short sale consultant you put the odds back in your favor. As a State Certified Short Sale Instructor I have the credentials and results to navigate the red tape. I understand the process and give educational opportunities to other agents for state mandated credit hours. I have saved many homes from foreclosure and I can help you too.

In 2007 President Bush signed the “Mortgage Forgiveness Debt Relief Act of 2007”. This bill is known as H.R. 3648 and it clearly states that as an owner of a primary residence you will face no tax liability for a loss taken by the lender on a short sale. Although the lender may send an IRS Form 1099 to report their loss, you do not have to claim the banks loss as income to you. It is important that in the year you perfect a short sale you seek assistance of a CPA to discuss your personal tax situation.

On a primary residence, a short sale helps you avoid a deficiency judgment as the lender is agreeing through negotiations to accept less than what is owed. A foreclosure usually ends up with the homeowner filing bankruptcy because the lender sues for a deficiency judgment and gets it. This is one reason why most people choose to short sale rather than allow foreclosure.

In most cases a short sale is noted on your credit report as a legal settlement. It is easier to recover from a short sale sooner as opposed to a foreclosure. There are guidelines from most lenders with mandatory waiting periods before you are able to borrow and re purchase a home. However, in most cases the short sale is a lesser waiting period than foreclosure and allows you to negotiate out any deficiency or balance due.

There are no upfront costs to the seller therefore the risk of foreclosure help scams is eliminated. You will have reputable consultants and licensed brokers working to help you. By listing your property with the assistance of a Licensed Broker, the costs of negotiations are absorbed by the lender though Real Estate commissions paid by the lender.

UNREALISTIC EXPECTATIONS

Understand that the bank is already taking a large haircut and will probably not give the house away. The banks now have more capital from the federal government and can afford to hold properties longer.

EXPECT A COUNTER OFFER

Most buyers seem to be affixed to a specific price in their mind. They tend to make a low offer in hopes of a home run and when the bank says no they withdraw. Be a savvy investor by understanding the bank matches up the sales price with the value provided to them through the BPO or Appraisal. Expect a counter and be ready to negotiate.

ALREADY DISCOUNTED

A short sale is usually discounted to produce a quicker sale than comparable properties. If the offer is not close then the bank will not except the deal and most likely will counter the offer or deny it all together.

SOMETHING FOR NOTHING

Most savvy investors understand that there is usually a price to pay for everything. Most short sales take about 90 days. A lot of buyers get frustrated and move on to other properties rather than hanging in there. In order to get a good deal there is a great amount of patience required.

MULTIPLE OFFERS

Normally REO’s are less flexible on price as there are fees that the bank is trying to recover. The bank will usually look at multiple offers and the highest one will most likely win. In a short sale, there is usually one offer at a time submitted to the lender for approval and multiple offers are in back up position. Back up offers are submitted if they are of greater value or the first offer was denied.

AS IS

Short sales and REO’s are usually sold “as is where is”. By requesting a home inspection you have performed due diligence and may be able to avoid future problems however, the bank will typically not negotiate over repairs.

HOT SHEET

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Although we cannot guarantee a successful close of every short sale, you can rest assured knowing that you have increased your chances of avoiding foreclosure by utilizing our services and seldom will a lender require the seller to bring money to close escrow.