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   Stacy Owens can help you get into your new home. My name is Stacy Owens, and I help people in, and moving to the    Sherwood Oregon area find homes and real estate that fit their needs. Read More about Stacy Owens.

 

 

 

 

In Sherwood a “Short Sale” Can be Opportunity for Home Buyers

Why should I consider Short Sales?
Real estate is not as sure a bet in today’s market, and homeowners owing more than the value of their home may miss an opportunity to sell without going further in debt or risking their financial future.

It is the “short sale.” 

While not unknown among lenders and real estate professionals, the Short Sale is either a new concept or misunderstood by property owners, home buyers and those who may be facing foreclosure. 

“With so much uncertainty in financial markets, home buyers everyday ask me about short sales,” noted Stacy Owens a Sherwood Oregon real estate agent.

When is a Short Sale right for the seller?
She explained that “typically, a short sale home seller owes more on the house than the current market supports. Similar to when your car depreciating faster than you can make payments on the car loan, a Short sale in real estate is an imbalance or upside down situation due to a combination of refinancing or second mortgages building up as a softening real estate market makes the house worth less and less.”

Why Banks prefer Short Sales over Forclosures:  
“Banks don’t want to foreclose and thus become owner of the property.  They’d rather take a slight loss on the mortgage and move on,” Owens said. 

How Stacy Owens can help with your Short Sale in Sherwood
“The concept is simple, but the Short Sale process can be complex,” she added.  “So banks typically require a real estate agent to work with the homeowner to determine pricing and coordinate paperwork.” Complete financial records, a personally written hardship statement as well as careful appraisals and other information will help a bank commit to the short sale offer.

A typical short sale could work like this:
The homeowner refinanced the home over years, each time getting closer to its estimated value.  The owner can no longer meet all their expenses and must sell in a market where home prices are deflating.  The home that appreciated to $500,000 and carries a $390,000 mortgage now compares to homes selling for only $375,000.  The homeowner misses several monthly payments and the lender is threatening foreclosure.  The short sell is arranged to a willing, financially capable buyer for $375.000, leaving a $15,000 gap, which the lender writes off as a loss to facilitate the sale.  The seller and the lender walk away.  

What’s the advantage of a short sale for the Seller?
Significantly, the seller who takes advantage of the short sale option does not have a foreclosure on his or her credit record and the lender does not become a property owner.

What’s the advantage of a Short Sale for qualified buyers?
Owens noted that the other side of this coin is the opportunity it presents for qualified buyers.  “The potential for a short sale expands choices in the market for home buyers or investors,” Owens said. 

Homeowners facing financial challenges and those shopping for a home or an investment property should both consider talking to an established, experienced real estate broker about the short sale market. 

 “It really is a fair solution to a difficult problem. The seller gets out of the home with less damage to their credit worthiness, the lender is not saddled with the expense of managing and marketing a property, and a new buyer can step into a short sale bargain,” she added.