Pre-Foreclosure or "Short Sales"
Expertise, Hard Work, Personal Service, Results
Some homeowners, especially those who purchased or refinanced their homes in the past few years, may be experiencing financial difficulties as their mortgage loan's introductory interest rate adjusts upward and their required monthly payment increases substantially. Others may have experienced a job loss, health problems, or changes in their family or relationship status such as divorce that make it difficult, if not impossible, to meet their monthly housing payment obligations.
When a homeowner falls behind on their mortgage, typically after a few missed payments, the lender will issue a Notice of Default. If the outstanding unpaid balance is not paid in a timely manner, the lender may foreclose. A foreclosure is both emotionally difficult and financially devastating for the homeowner, resulting in severe harm to their credit.
Fortunately, by taking action soon after (or in some cases, even before) receiving a Notice of Default, a homeowner who risks foreclosure may be able to avoid that process through what is known as a "short sale." A short sale involves negotiating with a lender the sale of real property when the property's market value is less than the amount of the monetary liens against it. Short sales are usually consummated for a significant discount from the amount of the outstanding loans, which allows for the payment of real estate commissions, closing costs, and other expenses or liens as part of the transaction.
Short sales are difficult and challenging to negotiate. They usually require significant financial concessions by the lender, who must accept as full payment an amount that falls "short" of the total amount loaned to the homeowner. While the seller in a short sale hopes to obtain a release of the existing note and avoid the unpleasant consequences that follow from walking away from a mortgage and going through a bank foreclosure, the motivation for a lender is to accept today a loss that is less than the loss the lender is likely to face down the road.
At Nugent Properties, we are skilled negotiators and offer the credibility and expertise to tackle these challenging, but potentially rewarding, solutions to an imminent foreclosure. While there is no guarantee a lender will accept a "short sale" purchase offer, they often do.
Contact us today to inquire about the possibility of a pre-foreclosure or "short sale" on your home.
