short sale

19 Cedar Road, Mount Pocono

SOLD

PRICE REDUCED! Close to town and no association dues! This bi level has lots of room. Nice large kitchen area with appliances and finished lower level. MAKE AN OFFER! Call Sue McShane at 570-972-0114 and ask about MLS# 10-1627.

short sale

Short Sales – great options in some cases – Fodder for Fraud in others

Short sales are a hot topic in today’s real estate world. Individuals who are behind on their mortgage payments or who see that the value of their home is less than what they owe on it might think that foreclosure is their only option. But, another option is often a good choice – the “short sale.”

A short sale allows for the sale of the property at the lower value, and though it may be less than what is owed, the lender has previously agreed to take the “short” amount. In these cases, the lender has agreed to taking less than is owed on the home so the individual can get out of the bad situation without still owing additional funds on the mortgage after the sale. The typical pattern is that a REALTOR lists the home below the mortgage pay off, with the contingent that the lender approves a “short sale.”

That’s the good news.

The bad news is there is room for fraud so be careful. (You can learn more about this at http://activerain.com/blogsview/1147042/mortgage-fraud-101-short-sale-fraud)

Don’t forget – most short sales are very good opportunities for the savvy buyer. Today, there are many Pocono real estate properties being sold for six figures less than their actual value. These are new homes in good condition. What a great opportunity for a buyer who waited and can snatch up one of these short sale homes for a “steal.”

short sale

What is a short sale?

Q:  “I’ve been hearing lots of buzz about “short sales,” -  what are those?”

A: When an individual is behind on their mortgage payments and the value of their home is less than what is owed, it is often a good idea to pursue a “short sale” situation rather than hold off until a foreclosure is imminent. To do this, communications begin with the lender. The objective is to see if the lender may consider taking less than is owed on the home so the individual can get out of the bad situation without still owing additional funds on the mortgage after the sale. Next, a REALTOR lists the home below the mortgage pay off, with the contingent that the lender approves a “short sale.” This can take months for several reasons. First, a buyer must be found that is willing to wait for lender approval and second, there are so many foreclosures and short sales in the system that the lenders are playing “catch up.”

The good news is that for an individual sitting on some cash, a money market, a cd,  or someone who has been saving for a home, investing in a “short sale” property is an excellent investment and an excellent opportunity. Many homes are below market value and interest rates are at all time lows. And, there are a whole host of additional incentives for the first-time homebuyer.

I recommend finding a REALTOR buyer agent to help you find a bargain.

I can tell you about some Pocono real estate where new construction homes were sold with financing that should not have gone through for some borrowers. In some cases, homes are being sold for six figures less than their actual value. These are new homes in good condition. What a great opportunity for a buyer who waited and can snatch up one of these short sale homes for a “steal.”