Short Sale Specialist
By now just about everyone has been inundated with stories of mortgage foreclosures and bank repossessions. With all this bad news it may seem that banks from coast to coast are looking for ways to foreclose on their outstanding loans, but in fact this is typically not the case. For the most part banks are not looking for an excuse to foreclose on properties in default, and in fact many banks are actively seeking a way to keep those distressed properties out of foreclosure.
That is because banks are not in the real estate business. Bankers are not real estate agents, and for the most part they are not interested in becoming real estate agents. Banks – simply put – are in the money business. Those banks and the shareholders to whom they ultimate answer are simply looking for the best way to get a return on their investment. In some cases the best return they can get will be on the courthouse steps at a foreclosure sale, but in most cases there will be other more attractive options.
This is of course good news for those homeowners who have found themselves hit by the triple threat of low home equity, rising interest rates and sinking home values. All the factors that made the real estate market so attractive only a few years ago have been turned on their head, and that is bad news for homeowners in virtually every part of the country. With the values of homes falling, more and more homeowners have found themselves in the unenviable position of owing more than their properties are worth.
When this occurs, the number of choices can quickly erode to a few unpalatable alternatives. When the outstanding loan balance exceeds the home value it can be difficult if not impossible to refinance your way out of a rising interest rate, and many homeowners have hit the proverbial brick wall when trying to obtain a new loan.
Another equally unattractive option is to sell the home, but this is easier said than done in a down housing market like the one in which we find ourselves. Selling into a down market can still leave the unlucky homeowner owing additional money on the mortgage – certainly not a viable option for most people.
Fortunately for harried homeowners there is another alternative that may provide a way out of this difficult situation. With more and more homeowners finding themselves behind the eight ball, the option of a short pay is becoming more and more attractive.
Of course many people are not familiar with the concept of a short pay specialist, so some explanation is definitely in order. In its simplest terms a short pay refers to a significant discount that the bank gives a homeowner on his or her existing loan. Banks are obviously loathe to advertise the availability of this option, and it often takes a professional short pay specialist to work out all the complicated details.
The job of the short pay specialist is to negotiate the best possible terms for the homeowner. These professional negotiators understand that the bank is not in the business of buying and selling houses, and they use their unique knowledge of the banking industry to negotiate lower interest rates, more favorable repayment terms and more for the homeowners who use them.
Short pay specialists also understand that in most cases the bank does not want to take over ownership of the property, especially in a challenging market for new and existing homes. When the outstanding amount of the mortgage is more than the value of the home the bank can be in as difficult a position as the homeowner. That is because those unflattering numbers will show up on the bank’s balance sheet, and this negative information can be enough to spook investors who have already been rattled by bank failures, federal bailouts and other bad news coming from the finance industry.
The bottom line is that banks are simply not in the business of repossessing, rehabbing and reselling homes. Those activities are best left to experienced real estate investors, and short sale specialists are adept at using this knowledge to negotiate with lenders on behalf of homeowners who are in danger of losing their homes.
So if you are looking for a short sale specialist who understands the banking industry and the real estate market, please take a look at what we have to offer. We understand how difficult it is to face a possible foreclosure, and we are here to help.