Short Sales and Why You Need to Know About Them
Short sales are all the rage right now. We receive phonecalls weekly on Dunwoody short sales, Brookhaven short sales, and Buckhead short sales. Many buyers are hunting for them specifically because of the high risk/high reward opportunity. Typically an agent with a potential short sale listing will price the property to sell because time is of the essence. A short sale is literally a race against the clock to avoid foreclosure. It’s important to note that short sales are not a “get out of jail free” card or in other words a way for you to just short change the bank because you want to move. Short sales are last chance opportunities for homeowners to avoid foreclosure. These are good for a number of reasons. First of all logically it helps the homeowner avoid a damaging foreclosure, and the effects on the homeowner’s credit are reduced versus foreclosure. Secondly, short sales help the lender(s) because they don’t have to deal with the costly and risky process of foreclosure. I say risky because banks are not in the business of managing property. As a non performing asset, vacant foreclosure property becomes toxic for banks. Now that I have received the Certified Distressed Property Expert designation I understand the value I, as a skilled short sale agent, provide for my clients. I certainly believe that in this business of real estate you are helping people everyday, but perhaps not in the same way as you help people when their lives, both financially and emotionally, are on the line facing foreclosure.
Perhaps another good thing about short sales is that the homeseller typically doesn’t pay commissions. In fact, if negotiated well, a homeseller doesn’t pay much, if anything. As a short sale expert, I negotiate on the sellers’ behalf with their lenders for a short payoff of their loans. All the while, I negotiate with those same lenders to compensate me for the service I’ve provided. For every short sale I complete a package for each lender that spells out why they should accept my short sale contract. It’s my opportunity to make my case for the homeowner. My last packages had over 85 pages each! The process is long and requires a great deal of patience by both the buyers and the sellers, but in a successful short sale transaction, all parties receive what they want.
Bad things happen to good people every day. If you know of someone who has recently lost a job, had a change in income, or faces other unexpected expenses limiting their ability to fulfill their mortgage obligation, would you please give them my contact information? There may be options available for them that could help significantly, and we would love to discuss those options personally. We treat every consultation with dignity and confidentiality. We just helped a client with a Norcross short sale, and we currently are working with a client on a Sandy Springs short sale to help avoid foreclosure.
While our entire business cannot be built around short sales, we believe that a percentage of our business needs to be dedicated to this valuable service. For one, the market demands it given this economy. Second, it’s a worthwhile fulfilling endeavor, and it truly helps people and families. If you or someone you know is facing a potential foreclosure, time could be running out. Give The Peters Company a call today at 770-634-2782.
