| I had just come back from lunch when Ashley | | | | in her city, she still had not received a purchase |
| (my secretary) handed me a note with the | | | | offer. Not a single one. |
| following phone message: | | | | Both real estate companies had advertised her |
| "Ricardo, need to sell house fast. Please call." | | | | home in different newspapers and magazines. |
| The message was from a past client of mine | | | | They also had plastered the home on several |
| whom I had Short Sold a home for over a year | | | | websites throughout the internet. Nothing. |
| ago, and now apparently wanted to Short Sale | | | | Post cards of all colors, sizes and shapes had |
| another house. | | | | been mailed promoting the house, with no inquiring |
| THE PROBLEM: She had just received a Summary | | | | calls ever coming in. Not one call. |
| of Final Judgment from the courthouse and had | | | | The home had also been showcased in a monthly |
| 30 days (at the most) to sell her house, or it | | | | newsletter targeted to hundreds of 'ready' buyers |
| would be foreclosed. | | | | (persons who, when registering to receive the |
| Why is this a problem? Because you only have 30 | | | | newsletter, had said they needed to buy a home |
| days to 1) contact the homeowner's bank, 2) | | | | in the next one to two months). |
| negotiate a loan reduction, 3) advertise the home, | | | | In addition, one of the real estate companies |
| 4) find a buyer, and 5) close the sale before the | | | | exposed the home internationally by advertising it |
| homeowner's credit may be stained for up to 10 | | | | to investors in Europe. |
| years with a foreclosure. | | | | What's more, out of desperation, my client had |
| As you can already gather from the story I'm | | | | called every "We Buy Houses" signs she saw on |
| sharing, the only way to sell a home fast, and | | | | the streets - again, with no results. Most of them |
| increasing your chances of avoiding foreclosure, is | | | | wanted to buy her house for a lot less than what |
| to Short Sell a home. Period. I'll reveal precisely | | | | she owed on her mortgage. |
| why in a moment. | | | | MY CLIENT'S SOLUTION (AND MAYBE YOURS, |
| MY CLIENT'S MISTAKE: She tried selling the home | | | | TOO) TO SELLING A HOME FAST AND AVOID |
| at market value. | | | | FORECLOSURE: Implementing a Short Sale. |
| And although there is certainly nothing wrong with | | | | Here's why. |
| trying to sell a home for a profit, I do suggest | | | | In a Short Sale, the selling price of the home |
| considering ALL of your options and deciding | | | | could be anywhere from 27% to 49% below |
| wisely on the one which serves you best - as | | | | what the house is worth. |
| soon as you can. | | | | This means if a house is worth $200,000; it can |
| Here's what I mean. | | | | be sold for $146,000 if it's at 27% below market |
| My client resisted Short Selling her home sooner | | | | value, or sold at a steal for $102,000 if it's at |
| despite plenty of warning shouts: | | | | 49% below market value. |
| She had already received a Notice of Default. | | | | How can house sell for so little? Because a |
| She had lowered the price of her new home to | | | | mortgage reduction has been negotiated with the |
| compete with older, but similar sized homes in her | | | | bank. |
| neighborhood. She had invested some of her own | | | | The home is sold. The client avoids having her |
| money in advertisements. She even repainted the | | | | credit ruined - and that's ultimately what you |
| house hoping it would persuade buyers to call. | | | | want. In this type of market, playing the waiting |
| Nothing. | | | | game could kill your financial future. |
| After 14 months of having her home listed with | | | | If you're considering short selling your house, may |
| two of the most reputable Real Estate companies | | | | I suggest you do it sooner rather than later. |