Short Sales: Our team can guide you

Short Sale is a process by which a lender agrees to receive a lower amount of an owed debt in exchange for the sale of the property to a third party, usually at no cost to the borrower.

A short sale occurs when the homeowner who can no longer afford paying the mortgage payments is allowed to sell the property at the current market value. If an offer made by a buyer is accepted by the lender, the short sale transaction may be completed. The borrower is no longer responsible for the loan and the difference between what the sale price and what the borrower owes is considered by the bank as a loss.

Should I Consider a Short Sale?

• Are your mortgage payments too high?
• Do you want lenders to stop calling?
• Do you owe more than your house is worth?
• Do you want to dispose of your debt?
• Want to minimize damage to your credit?
• Suffered loss of income?
• Your mortgage will adjust soon and you cannot afford paying skyrocketing rate?
• Want to sell your house but there is not enough equity?
• Do you want to avoid a foreclosure and get a fresh start?

Regardless of your circumstances, we can find powerful solutions available. Default situations are time sensitive, avoiding the situation is simply unwise.

Typically when someone is at the point of not being able to afford their home due to; high rates, dips in property values, divorce, loss of employment, decrease of income, etc., then we are forced to make a life altering decision.

If your home is foreclosed on you it will ruin your credit for seven years. That means you will have extreme difficulty finding any bank to loan you money. You can forget about being able to buy another house, a car, open a new business, or even qualify for credit cards. On top of that, the loans you do receive will have incredibly high interest rates as you will be considered a credit risk by credit card companies and banks.

With a Short Sale you have the ability to save your credit from reflecting a ‘foreclosure’ as to simply having a ‘settled debt’.

A Short Sale offers a way out of debt and leads to a fresh start.

Listed below are some of the reasons to conduct a Short Sale:

1. Erase a large debt
2. Get debt free fresh start
3. Minimize damage to credit
4. Take charge over the foreclosure process
5. Avoid eviction
6. Allow yourself the option to move anywhere you want without having the burden of a bad credit making it difficult to rent or buy.

How Can We Help?

1. Protecting your credit from further degradation.
2. Presenting a solution to the lender and negotiating favorable terms.
3. Helping to minimize your debt obligations.
4. Allowing the borrower and her/his family to get a fresh start.
5. Expediting the process with a fast resolution.

For more information about Short Sales contact us via email us at info@penzonerealty.com.

Investors that pursue short sales often find amazing bargains, as the price paid for short sales is generally much lower than the current property value. Whether you are an astute investor seeking discounted properties or just looking for a new place to live, Penzone Realty will be able to answer all of your questions and present you with great opportunities today.

REO

Real Estate Owned or REO is a class of property owned by a lender, typically a bank, after a default sale at a foreclosure auction. After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the property and try to resell it to the public. (wikipedia.org)

Buying bank owned properties

There is a lot of interest in buying bank owned properties these days. As foreclosure numbers increase, the bank owned inventory increases. However, competition on these properties is high and transaction requires specialists.

“Real Estate Owned” or “Bank-owned” properties have gone through foreclosure and are now owned by the bank or mortgage company.

Is a REO and a Foreclosure Sale the same?

NO. REO sale is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you need to be ready with cash in hand to pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. In exchange, you will receive the property “as is” which might include existing liens and even current occupants that need to be evicted.

A REO, by contrast, is a much “cleaner” and attractive transaction. The REO is owned by the bank because it did not find a buyer during foreclosure auction. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.

Be aware that REO’s may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is a REO a bargain?

It depends. While it’s true that the bank is typically anxious to sell the property quickly, they are also strongly motivated to get the highest price for it. When considering the value of a REO, look closely at comparable sales in the neighborhood and calculate carefully the time and cost of any repairs or remodeling needed to prepare the house for a move or resale. The bargains with money making potential definitely exist, and many people do very well buying foreclosures. Penzone Realty specializes in finding these deals for you.

Ready to make an offer?

Typically the REO department will use a listing agent to get their REO properties listed on the local MLS. Before making your offer, Penzone Realty will contact either the listing agent or REO department at the bank and find out as much as possible about the condition of the property and how offers are received. Penzone Realty will also work with you in preparing an attractive offer which will also include documentation of your ability to pay, such as a pre-approval letter from a lender. Through our affiliates, we can make the process easier for you.

The bank may make a counter offer. Penzone Realty will work with you to decide whether to accept their counter, or offer a counter to the counter offer. We will negotiate the best deal for you and will deal with a process that probably involves multiple people at the bank.