What is a Short Sale?
In a Short Sale, a financially insolvent homeowner who is facing possible foreclosure sells his home for less than the value of what is owed on the existing loan. The lender accepts the sale as payment in full for the loan. A Short Sale process is not a get "out of jail free" card. There could be some tax liabilities issues even if the Banks accepts and allows the property to be sold as a "Short Sale". I always recommend that the Homeowner consult their financial adviser prior to contacting me to assist them with their distressed property issues.
With Today's Market and ever changing Interests Rates, many Home Owners who purchased Real Estate a few years ago with a variable rate mortgages,(ARM's) Zero Down loans, or even sub prime loans are realizing that those interests rates are resetting and some are actually doubling, even tripling your original monthly Mortgage Payments, making it very difficult to keep up with the payments. Maybe a devastating event in the home owner's life, recent loss of job, or a divorce can have a serious financial repercussions, making the monthly loan payment an insurmountable financial issue.
In Today's Maui market, many areas and communities have also dramatically dropped in value, and currently are worth over $100,000 less now than when they were originally purchased making refinancing not a viable option.
Here's a secret: Lenders are in the Business of LENDING not owning, so they do not want to foreclose on a property. It costs them more time & money and are require to keep a reserve of funds which is money they can not loan out. Foreclosures cost Lenders up to $40K and up in costs, fees and taxes.
I am a trained Short Sale Expert. My team will negotiate with Lenders and submit your hardship circumstances to them to allow us to sell & market your Home at a prices less than whats currently owed. This option is highly recommended for Homeowners than going through a complete Foreclosure or Bankruptcy which could damage your credit rating score for up to 10 years. Doing a Short Sale will affect your credit scores but not as much as a Foreclosure. Most Homeowners are able to rebuild their credit scores again within a few short years .
Contact me Today and find out how I can help save you from a very difficult financial situation.
Available anytime, always here for you,
Hector M. Yepis R(S)
Short Sale Expert
South Maui Real Estate Consultant
Keller Williams Realty Maui
(808)250-6396 Direct
Info@ShortSalesMaui.com