Posted by: Nathan Gruwell | September 25, 2009

SHORT SALES

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage.  Short sales can be a win-win situation for all parties, because they enable home buyers to purchase properties in desirable neighborhoods and at favorable prices.

 

MAKING SENSE OF THE STORY FOR CONSUMERS

 

·      Theoretically, short sales should be a win-win for the bank and the homeowner.  Although the bank does not receive the full amount owed on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary.  Many homeowners also prefer short sales because it is less damaging to their credit scores than a foreclosure.  However, many real estate experts say that the majority of banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property.  In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financial hardship.  If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.

 

·      Unlike foreclosed properties, which may be run-down and vacant for many months, short-sale properties are likely to be better maintained, as most owners may still live in the home.

 

·       Short sales often are more time intensive than traditional transactions and often require additional paperwork.  Due to the large number of offers on short sales, many take as long as a few months to receive approval.  This many times will allow the home owner to remain in the property free, not making the mortgage payment. The cash strapped home owner can then pocket that savings and since Nathan Gruwell does not charge the home owner any fee for processing the short sale, this is a HUGE benefit to the home owner. 

 

·      Working with a REALTOR® like Nathan Gruwell, who has experience with short sales can help both sellers and home buyers during the transaction.  As a seasoned REALTOR® he will be able to serve as the mediator between the seller and the lender, and lead to a successful transaction.

 

Contact Nathan Gruwell today to find out how he can help!  NateGruwell@yahoo.com

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