A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

You may be asking yourself if my bank would allow me to do a short sale. Well the answer is yes. It’s all about maximizing the return on their loan and limiting their losses. A bank would prefer to get a delinquent loan off of their books and recapitalize with the sale proceeds from the short sale of the home. The cost of a foreclosure is almost always more expensive to a bank in comparison to a short sale.

I have earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^®stay current on national and state-specific information as the market for these distressed properties evolves.

I have recently completed the Certified HAFA specialist training program provided by Assetplan USA.

This 3 to 4 hour program provides a high level overview of the current US distressed housing market and an in depth review of Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program per Treasury Supplemental Directive 09-09. HAFA was revised by Treasury on March 26, 2010 and the program is fully updated to reflect those changes.

What does it mean for you as a homeowner?    Exit Gracefully