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ConnectRealty.comServing Your Real Estate Needs in
Columbus, OH
Phone: (614) 212-7700
Fax: (614) 212-7699Helping Distressed Homeowners
Through Difficult Times
In working with the distressed homeowner, we try to be aware of all the factors leading to the distressed situation the extreme stress that is occurring with the homeowner and the family.
So what choices does a distressed homeowner have in this situation?
1. They can live in the home and do nothing, live as a squatter in the property and hope the bank takes a long time to foreclose on the home. Taking this action will certainly ruin the homeowner’s credit.
2. The can list the property with a Realtor hoping to get an offer high enough to cover the mortgage and closing costs. By definition, if the homeowner has negative equity, the property is worth less than the loan. This option will not work either and the homeowner remains in default with the foreclosure looming.
3. List the property with a Realtor with the intention of finding a short sale buyer as an end user. This is a step in the right direction but unfortunately most buyers are not patient enough to wait the 90-120 days to negotiate the short sale with the lender. This is why almost 90% of short sales fail and the homeowner ends up being foreclosed upon and their credit destroyed.
4. Work with a Team of Short Sale Experts to find a qualified short sale investor, or qualified individual, who is committed to working with the homeowner, our negotiating team, the lender and also has the patience to wait the 90-120 days for the process to finalize.
These are the options homeowners face in trying to deal with a default on their property with negative equity. Homeowner's need to be aware that working with a knowledgeable Realtor and qualified experts and savvy buyer is key in efficiently handling a short sale transaction. Ultimately, it is the homeowner’s decision as to which path to choose to move forward.
In our opinion, any course of action that lessens the effects of financial distress should be taken. Although it may be difficult to focus, while going through the stress of a pending foreclosure, it is critical to preserve the homeowner’s credit to the extent possible. While a Short Sale and the settlement of hundreds of thousands of dollars of debt is something no one wants on their credit report, it is certainly better than a Foreclosure and possible Bankruptcy.
Working with a Team of Experts!
In difficult times it is important to have a team of experts on your side. What is needed is a detailed EXIT Strategy that really works, with a team of individuals that can both get the job done of selling your home, while preserving your credit and reducing on-going financial liability. Our team approach objective is to get you back on your feet as quickly as possible.
Our strategy actually involves two teams working to solve your problem.
Team One is your Marketing Team. They will help you get the process started, they will help you assess current market conditions, market and interest rate trends, establish a market price and put in place a marketing plan that will get your house sold quickly and for top dollar. Our Marketing Team will negotiate the purchase contract between you and the buyer.
Team Two are our Lender Expert Team that has inside knowledge on how to work with your lender to move your sale through the system as quickly as possible, while also limiting your liability. You will work closely with the Lender Expert Team members to collect, organize and submit all lender required documents. They will also order all necessary title work and negotiate all liens associated with your property. Additionally, the lender team will introduce your property to qualified buyers and investors that will make an initial bid on your property. This is a critical step is getting the attention of the bank and their loss mitigation department. Without this group the process fails 90% of the time as mentioned in situation (3) above.
These investors normally start their offer at where they believe your property would start at sheriff's auction (basically 2/3 of the fair market value. Remember, fair market value is not what the loan amount is or what you paid or what you owe, but the estimated value in today's market.
The important point for the homeowner to understand is this offer has no impact on them...any offer amount less than what is owed is negative equity and has no value to the homeowner. The only thing that benefits the homeowner, in a short sale, is a quick sale, reguardless of the price and as much forgiveness of debt as possible.
Everyday we see people and organizations ready to take advantage of homeowner’s temporary misfortune. They will offer quick cash or a way to deed them the property. Normally, this is all for their advantage and the homeowner is left worse off then before…still owing…still receiving calls and still liable for their debt.
Before you sign or do anything make sure you understand ALL of your options. Through our unique approach we protect your interest and at no cost to you.
Don’t sign anything, with any agent, organization or investor, until you have discussed your unique situation with one of our team members. Call Carol Ciroli at 614-212-7701 or email, cciroli@gmail.com
Click here to view Short Sales and REO properties on The Columbus MLS Short Sales