Short Sale was the Only Option

Well finally I have a moment to write about this particular case. About a month and a half ago the owner of the property 4006 27th Ave. in Minneapolis came to our Help-U-Sell office asking for help to sell his property. Right from the beginning we knew he was desperate; you could feel the tension in the air. He was about to loose his home due to a foreclosure and did not have too much time. He had only one month and a half left before the redemption period ended and the bank repossessed his property. Short sale was the only option and there was no time to think but to take action and we were ready for the challenge. That same afternoon the property was active in the MLS and we started to promote it in every possible way.

I must say that no much time to perform a “short sale” is a little difficult task taking in consideration that we had a dead line for the closing date, and we could not go beyond that specific day otherwise the bank repossesses the property even if they have an offer accepted so everything had to work at perfection. This is not a quick process since the bank is the one that approves the offer sent by the buyer(s), make sure the seller had a good reason for going in foreclosure such as loss of job, cuts in work hours or overtime, retirement, illness, injury, death of a family member, or divorce or separation so they are able to forgive the difference between the selling price and the payoff of the mortgage (If you’re selling the house yourself to avoid foreclosure, make sure you get all “promises” in writing), they also make inspections in the property, and most important they make sure it is not a big loss for them.

Good work pays off - A week or so after listing the house and over 80 showings, including the open house we had three offers on the table. We sent them to the bank for approval and then follow-up for a painful and stressful long month. After that everything was ready and we finally close and sold this property the last day of the redemption period.

The Seller could not be happier and relieved. Even though he had to move out his home, and no profit out of the sale, he knew that when time comes he will be able to overcome his problems and start a new home without the hassle of having a foreclosure on his record.

Short sale or Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
1. The loan is at least 2 months delinquent;
2. You are able to sell your house within 3 to 5 months; and
3. A new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Remember do not lose your home and damage your credit history. You can call or write your mortgage lender immediately and be honest about your financial situation, DO NOT IGNORE THE LETTERS FROM YOUR LENDER. Also explore every alternative to keep your home. Do not sign anything you don’t understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation. Act now - Delaying cannot help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

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