All posts tagged: Short Sale

Short Sale, Quick Sale and Realtors

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We recently had a question on our radio show about what is a Short Sale versus a Quick Sale. Both “Short” and “Quick” are terms referring to small measure, but in real estate, they’re not both talking about time.

A Short Sale is when we have to negotiate with the lien holders to accept less than what is owned on the loan. For instance, the house may be worth $100,000 in today’s market, but have a debt of $200,000 on it, thus we have to get the bank to accept an amount of $100,000 short of what is owed.

A Quick Sale refers to a property discounted so that it will move off the market as fast as possible, as in the case with a divorce settlement.

In both situations, the right way to sell the house is to list the property with a Realtor. You have to have a Realtor to market the real estate properly. We have a lot of great local Realtors, like Wendy Sawyer, who know the market, have access to the MLS (Multiple Listing Service) and other tools, and who operate with a professional approach and high ethical standard.

Again, this was a question that came up recently on our radio show, “Land Title Talk,” which airs Wednesday mornings at 8:00 to 9:00 on News Talk 1240 AM WFOY (online at www.1240news.com). If you’d like to join our live discussion with a real estate-related topic, call the station during the show at (904) 797-1919 or send a text to (904) 501-4481.

Stephen CollinsShort Sale, Quick Sale and Realtors
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Short Sale Advantage

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A Short Sale allows you to sell your home and the servicer agrees to forgive any shortfall between the sale price and the mortgage balance. Thus a “short” sale. This approach avoids a damaging foreclosure entry on your credit report.

The difference between a Promissory Note and a Mortgage is that a Promissory Note is a promise to pay back the loan. A Mortgage is the collateral document of the loan—if you don’t pay the Promissory Note, then it is paid with the Mortgage.

In the case of a foreclosure, the homeowner takes a credit hit, and the Promissory Note is still out there, so the lender can still come after the homeowner. The advantage of a short sale is that the homeowner avoids foreclosure and the Promissory Note is no longer an issue.

A short sale is better for a homeowner than a foreclosure because it is better on the homeowner’s credit, and avoids a deficiency and judgment that’s good for 20 years! We want the lender to forgive the deficit, and enable the homeowner to move to a place where he or she can be comfortable with the payments.

Stephen CollinsShort Sale Advantage
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