Short Sales Sell For A Higher Price Than A Foreclosure

Short Sales Sell For A Higher Price Than A Foreclosure

People often wonder why their lender will release their debt in a short sale. Most lenders don't like to release the debt. But, they agree to do it because they know that policy nets them more money.

They net more because a home usually sells for more money as a short sale versus after it has been foreclosed upon. Let's go thru a few examples.

Email philli@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Most short sales are being sold while the homeowner lives in the home.  So the house still tends to be in good shape.

The homeowners are able to keep the house up. They keep the inside clean and neat. In addition, they mow the lawn and keep up on the yard.

This makes a big difference in the sales price. Would you rather buy a home that is in great condition or one that needs work?

Now foreclosure homes are normally abandoned and empty.  There is no one there to take care of the property, or keep up the yard everyday.

The inside of the home is probably dirty. Vagrants can break into the home. The home is also an easy target for vandalism.

The bottom line is that most short sales are in better shape than a foreclosed home.  In fact, they are usually in much better shape.

That is why they sell for more money, thereby cutting the lender's losses.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale Mansfield, Midlothian, Waxahachie, Ennis and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

Even The Rich Are Being Foreclosed On

Even The Rich Are Being Foreclosed On

This could be good news or bad news, depending on how you look at it. Here is the good news.

If you are a little guy having financial problems, then you are not alone. Even Billionaires are being foreclosed on.

Emailing beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Even a woman who was married to a man who was the richest man in the world at one time is being foreclosed on. Here is the story according to Yahoo Finance:

"Article Title: The Rise and Fall of Patricia Kluge, Former billionaire spouse turned vintner is now facing foreclosure.

It's the kind of story from which movies are made. Sad ones, that is. A beautiful young woman marries a billionaire, divorces and uses her hefty settlement to strike out into a celebrated business, only to lose it all. Rather than a contrived film plot, this is the real-life story of Patricia Kluge.

Last month Kluge, now 62, bid adieu to Albemarle, a beloved Charlottesville, Va., manse. That's when the 200-acre, 45-room estate became the subject of a foreclosure auction on the courthouse steps in downtown Charlottesville. By its ending, creditor Bank of America had repossessed the property for just $15.3 million.

The sales was just the latest in a string of ups and downs for the former heiress. Raised in Iraq under British rule, Kluge worked early in her career as a nude model for first husband Russell Gay at Knave magazine. On a trip to New York City she met John W. Kluge, the founder of Metromedia. The two were married in 1981. By the time they divorced nine years later, Kluge, the husband, was ranked by Forbes as the world's richest man, worth more than $5 billion.

Patricia walked away with a paltry settlement by comparison, estimated to have come to less than $1 million a year, plus Albemarle. The 24,000-square-foot neo-Georgian home boasts a helipad, wine grotto, stables and two kitchens. It is nestled in the Virginia countryside near Thomas Jefferson's Monticello estate.

The seeds of Kluge's financial downfall were sown in 1999 when, along with third husband William Moses, she established the Kluge Estate Winery and Vineyard on 960 acres near Albemarle. The couple's plan: Create vintages that would establish Kluge Estate, and subsequently Virginia, as an East Coast mecca for fine wine.

The Kluge Estate Winery quickly won critical acclaim for its bubbly vintages and red-wine blends. Soon Kluge wines were making their way to the dinner tables of society darlings and upscale restaurants. They even graced the menu for Chelsea Clinton's multimillion-dollar wedding weekend last July.

Perhaps intoxicated by her success, Kluge decided to expand aggressively. Over the past five years she took out $65 million in loans, according to public records. The money went into expanding wine production and building a super-luxury subdivision called Vineyard Estates, which was to include 24 multimillion-dollar homes with pools, outdoor kitchens, tennis courts, horse trails -- and even space for private vineyards.

That's when the housing crisis hit. Vineyard Estates failed to draw buyers. Property values plunged.

In 2009 Kluge put Albemarle up for sale. Sotheby's International Realty initially listed it for $100 million. The figure was cut to $48 million in early 2010 and then to $24 million, where it sat until February's bank foreclosure.

Apparently unable to service her debt, Kluge then hired Sotheby's Auction House to host a two-day estate auction on the Albemarle grounds. Up for sale went personal jewelry, art and furniture that included a Chippendale dressing commode that sold for $338,500 and a Qing Dynasty table clock that fetched $3.8 million. All told, 933 items brought in $15.1 million.

Next went the winery itself. Farm Creditor of Virginia, one of Kluge's three major lenders, estimates she poured more than $40 million into the business. Despite critical acclaim for her vintages, Kluge appears to have cranked up production to 30,000 cases a year, only to discover that her company could sell less than half that. Kluge and Moses defaulted on almost $35 million in loans. By mid-December Farm Credit had repossessed Kluge Estate Winery and Vineyard after it failed to sell in an auction in which the minimum bid was set at $19 million.

Farm Creditor of Virginia still owns the property and has put a freeze on all operations. The bank plans on April 7 to resell the acreage as six separate tracts in an absolute auction, in which they are sold to the highest bidder with no reserve price. The vineyard's farm equipment will be sold the following day.

With no buyer turning up for Albemarle, Kluge stopped making payments last year and defaulted on nearly $24 million in loans from Bank of America. She received a foreclosure notice in January, and Bank of America picked mid-February to auction off the estate. The bank took possession when no buyers stepped forward with a bid of more than $15.3 million.

There may be a silver lining for Kluge's creditors, if not for the former heiress herself. Donald Trump, a longtime friend of Kluge's, has expressed an interest in taking Albemarle off Bank of America's repossession roster. He has already bought up the 216-acre front lawn.

"Ultimately we'd like to buy the home, but the bank has an unrealistic expectation for the purchase price," asserts Jason D. Greenblatt, general counsel for the Trump Organization. "We do have Right of First Refusal on that piece [the Albemarle home], so that if and when the bank finds a buyer, they would have to come to us first to see if we want to take it."

The Trump Organization also bid in December on Kluge's winery properties, but its offer was rejected by Farm Credit. Greenblatt says he's planning to travel to Charlottesville to tour the grounds and discuss buying the Kluge properties from the banks that now own them.

Kluge remains embroiled in the restitution claims and disputes related to the foreclosures, according to a source close to her, who spoke on condition of anonymity. Kluge herself is remaining mum.

Despite their financial troubles, Kluge and Moses continue to live in a home that many would consider palatial. It's a $3 million Vineyard Estates property they had built on spec back in the days when it seemed as if no real estate deal, or vintage, would ever go sour."

Kluge did what a lot of Average Joes did. She borrowed lots of money and had a hard time making the payments after the economy tanked.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale Grand Prairie, Arlington, Ft. Worth, Dallas and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

Four Specific Examples of Big Bank Negligence

Four Specific Examples of Big Bank Negligence

Here are four specific examples of big bank’s negligence causing a loan owner to lose money.

Email phillis@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Example #1: Not giving buyers an answer on a short sale within one week. Home buyers don’t like to wait 3-6 months for an answer on a short sale. This fact causes many buyers to shy away from short sales, thereby causing short sales to sell for less.

Lenders should help the loan owners recoup as much money as possible from short sales. To do this, they make the short sale approval process as quick as possible.

They could start the property valuation process when the property is put on the market and determine a certain price they would accept.

More buyers would be willing to purchase the property because they know they wouldn’t have to wait 3-6 months for an answer on the short sale.

Example #2: Turning down loan mods that amortize at a higher value than what is netted on a short sale or thru REO. Let me explain a little better. A lender negotiates a loan mod with a borrower with a new monthly payment of $1,000.

The borrower has a stable income and agrees to pay $1,000 a month for the next 30 years. $1,000 a month for 30 years, at a 6.5% interest rate will repay a $158,210 mortgage.

The servicer turns down the loan mod and forecloses. The house sells for $125,000 as an REO and the servicer nets $115,000. Did the owner of the loan lose money?

I think most people would agree yes. Obviously there are other factors involved, but I think on an actuarial basis they will do better with the loan mod.

Example #3: Not following up on foreclosures properly. I have seen countless examples of servicers hiring an attorney to foreclose on a house. The attorney files the paperwork.

Then, the foreclosure case goes into purgatory. Nothing happen for 6 months, 12 months, 18 months, and even up to 2 years.

I have seen this happen on more than one property. And no, there are not other factors involved. In fact, on two short sales I've handled, the sellers had moved out of the house before the foreclosure was even filed.

Example #4: Not listing REO properties quickly enough.  I have witnessed several examples of banks foreclosing on a house and then taking 6 months to a year to put it up for sale.

An example is a house that was foreclosed on September 9th, 2009. It wasn’t listed for sale until May 2010. Say what you want, but waiting 8 months is pathetic.

If the mortgage holder had been a wealthy individual who lived in town, do you think they would have put the home on the market a little sooner?

These are the clearest examples I can think of right now. When you multiply these examples of negligence across hundreds of thousands of defaulted mortgages, you can easily see how this is costing lenders billions of dollars.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com.  I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale in Cedar Hill, Duncanville, Desoto, Midlothian or Lancaster and request a free consultation by email beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.


Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

Should I Continue Paying My Credit Cards During A Short Sale?

Should I Continue Paying My Credit Cards During A Short Sale?

Here is a recent question The Texas Group Realtors received.

"I am selling my house as a short sale. I am behind on the mortgage payments. Do you think I should still pay my credit cards?"

Email phillis@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is our answer. It all depends on what is important to you. Can you afford your mortgage payment if you stopped paying the credit cards?

If the answer is yes and you don't want to move, then I would recommend that you stop paying the credit cards. Obviously that will hurt your credit.

But, if you want to keep your home, then you will probably think it is worth it. Then again, I have seen people who would rather have the good credit.

However, if you do want to move, then it would be better to keep paying the cards and short selling the house.

Missed mortgage payments won't have to much of an impact on your credit score 12-18 months down the road, especially if you short sale.

However, a credit card that you never pay on again will stay on your credit for a longer time. The debt will show up as written off and that impacts your credit for a longer time than missed payments.

Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com.  I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale Cedar Hill, Duncanville, Desoto, Lancaster and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.


Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

How To Preserve Your Credit During A Short Sale.

How To Preserve Your Credit During A Short Sale.

If the right decision for you and your family is to sell the house as a short sale, then the sale will have an immediate effect on your credit score.

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

You might feel like it’s just overwhelming and demoralizing to see your credit score take any more hits!

But, here’s the silver lining:  according to most experts, 78% of Americans have ERRORS on their credit score. Why is that a silver lining?

If you have negative errors on your report that get fixed, that will be a benefit to your score.

Average people can, on their own, take steps to repair and restore their credit report/ credit score after a short sale.

Here is how to avoid any double whammies during and after your short sale.

Follow these simple tips.

1. Review your credit report. I recommend the site: www.creditkarma.com. After you get the report, review everything on it.

If you see anything that is negative, inaccurate, or questionable make a note of it.  On your list, write down why you disagree with that item on your report.

2. Write letters to the different credit bureaus about what you are disputing on your report.  There are several sample letters available online: http://www.creditinfocenter.com/forms. 

Here is a simple tip: DO NOT use the online dispute forms that are on the websites of the 3 credit reporting agencies. Write your own letter and make it short, firm, and demanding of action.

3. Mail your letters to the credit bureaus through either registered or certified mail.  This is what sets the clock for them to correct issues.

The law lays out a timeline that they have to follow (45 days.)  And, this gives you a record of the mailing, too.

4. Keep a file of all that you have done, including dates.  Then, track your results, also.

5. When you’ve gotten back responses (or if 45 days pass and you haven’t gotten responses), then it’s time to repeat some of the process again for some item or another on your report.

If you are diligent and proactive, you might just surprise yourself by the benefits you can see in on your credit report – even after your short sale! Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at beth@txhomerealty.com.  I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale and request a free consultation by emailing phillis@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email beth@txhomerealty.com to request a copy.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Important Notice

Phillis Nealy and the Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
A Dallas Short Sale is provided as a courtesy to our viewers to help them make informed decisions.

My Ex Is Short Selling. What Can I Do?

My Ex Is Short Selling. What Can I Do?

The Texas Group Realtors received this question form Dave short sales.

“My Ex-wife decided to Short Sell our former house. Unfortunately we both signed the mortgage when we bought the house together. I think that means I am still liable for the debt.

She got the home after the divorce. The court gave her the home in the divorce. The market has declined and the house is worth about 120k less than the mortgage amount.

I have a good job and some assets. Will I have to pay back the bank for the money they lose? (My ex is selling because of financial problems.)

Also, someone said I might have to pay income taxes on the written off debt. Is that true? Please help me out here. Sincerely, Dave.”

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was our answer. Dave, you probably should talk to a good lawyer. This is not the standard short sale. There might be tax laws that will allow you to not be liable for the tax liability on the written off debt.

Your ex probably meets that criterion. I would think that since she lives in the house, then you wouldn’t be liable for the taxes. But, then again, I am not an accountant and don’t know how the law would affect such a unique situation.

Will you have a deficiency judgment? We can’t know for sure because there are so many variables involved. However, in about 80% to 90% of the time, you won’t have a deficiency.

That is because most lenders just forgive the debt. They have found it tough to collect the upside down debt. Most people are short selling because of financial problems.

They are struggling to avoid bankruptcy without a large deficiency judgment. When they see a $100,000 deficiency, then they will probably just declare bankruptcy. Then the lenders gets nothing anyways.

Check with a competent short sale realtor in your area. They will be able to give you a good idea of whether or not you will have to pay the deficiency. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at beth@txhomerealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale in Cedar Hill, Desoto, Duncanville, Lancaster and request a free consultation by emailing phillis@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email beth@txhomerealty.com.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

How To Publicize Your Lender’s Failings

How To Publicize Your Lender’s Failings

If you get annoyed at your bank, then here are a few methods you can use to let the world know about your lender's failings.

One technique is a rip off report. Just put all the information onto www.ripoffreport.com. Just be sure to detail stuff that will hurt them.

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

You will want to put the CEO’s name into your report. You can also put down keywords like "Lender Name Loan." When someone searches Google for your lender’s name and loan, your post might just show up.

Don't talk about your lender only. Target the keywords that bring them business.

Another place to file your complaints is on your review for your local Lender on Google Maps. Lots of consumers search for a bank location on Google Maps. They will see the reviews when they pull them up.

One other technique that would be great is Wikipedia. I don't have enough time to figure out how Wikipedia works, but that is an idea for anyone who wants to try it out.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at beth@txhomerealty.com I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1379.

Discover how other sellers successfully completed a short sale in Midlothian, Cedar Hill, Lancaster, DeSoto and request a free consultation by emailing philiis@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Phillis Nealy specializes in loan modification assistance and short sales in Dallas Texas. Dallas Loan Modification Help, Dallas Short Sales. Texas Short Sale Realtor Dallas TX Short Sales. Dallas Realtor.

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

Short Sale or Save my House?

Short Sale or Save my House?

The Texas Group has received numerous calls that go something like this “I have fought the bank for year and half, and after paying thousands and thousands I have decided to short sale, can you help me”?

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Because of this, I decided to break down the reasons to short sale your home. In addition I added in a few reasons you should NOT consider A Short Sale:

Do NOT Short Sale if the value of your home is appreciating more then 5% a year. I have found that once you are upside down on your home more than 10%, then in most cases the housing market has dug a hole that no amount of financial superman work can get you out of.

Short Sale if you are a financial superman. If you are a CPA or Harvard Grad Number Cruncher, then you understand that numbers are more important than warm and fuzzy thinking.

Do NOT Short Sale if you are going to make TONS of money in the future! You can probably convince your lender to grant you a loan modification and get back on your feet.

Short Sale if you can find a rental home comparable to your home. You have to live somewhere. We have seen lots of homeowners find a nicer home to rent for a lower monthly payment than their “upside down” home.

Do NOT Short Sale if you think that you are different from large Wall Street Firms that willingly walk away from their obligations.

You believe that your finances should not be run like a business, you should never retire, and that people in debt deserve to work 80 hours a week for the rest of their life until they pay off their debt.

This one drives me nuts. It is ok for Morgan Stanley to strategically walk away from their obligations on 5 San Francisco Towers they bought, but it’s not ok for “Average Joe Homeowner” to walk away from his upside down house?

As you can see, when you run the numbers Short Sales almost ALWAYS make financial sense. Staying in a home that is upside down makes lousy financial sense, unless you get an awesome loan mod.

Now those are my opinions, and those points do not apply to every situation. What I am saying is that you really should look at your home as a financial investment, NOT a stone around your neck.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at phillis@txhomerealty.com  I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale in Arlington, Dallas, Mesquite, Lancaster and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.

Phillis Nealy specializes in loan modification assistance and short sales in Dallas Texas. Dallas Loan Modification Help, Dallas Short Sales. Texas Short Sale Realtor Dallas TX Short Sales. Dallas Realtor.

Important Notice

Phillis Nealy, and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed.

Looking at a Short Sale from a Lenders Perspective

Looking at a Short Sale from a Lenders Perspective

The Texas Group Realtors received a few responses from a blog post. Most of the questions went something like this.

"I think a lender would be stupid to approve an investment property short sale for a wealthy person. If I was the lender I would sue them for the loss.”

The bottom line is that people didn’t think a lender would allow a wealthy person to walk away from the debt on an investment property.

Email beth@txhomerealty.com to discover how other sellers successfully did a short sale and avoided foreclosure.

There are a few reasons that a lenders will allow a wealthy investor to walk away from an upside down investment property.

Lenders know that if they can give a customer what they want, then it will help them. If they don’t give a customer what they want, then everything turns into a fight.

Some homeowners will hire a lawyer to review every clause in the mortgage. They will check to make sure that each clause of the mortgage meets every single conceivable state and federal law. While other homeowners will declare bankruptcy to avoid paying the debt, which is the biggest impediment keeping lenders from collecting on a debt.

Debt is very hard to collect even in court. In fact, only around 8-10% of all judgments are ever collected. That means a lot of people and lenders spend thousands of dollars in court getting a judgment, only to never collect the money.

I hope this helps you see why a lender would find it simpler to approve a short sale rather than pursuing a debtor in the hopes of collecting on the deficiency.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at beth@txhomerealty.com.  I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale in Cedar Hill, Arlington, Grand Prairie, Duncanville and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email phillis@txhomerealty.com.

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (214) 650-5536.

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com

Important Notice

Phillis Nealy and The Texas Group Realtors are not affiliated in any way, shape, or form with the government.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

Why Do Short Sale Take So Long?

Why Do Short Sale Take So Long?

The Texas Group Realtors recently received a question from buyer. Here was her question.

“I am trying to buy a house that is a short sale. It has been 4 months and we have heard nothing. The agent did mention that they are now on the 2nd negotiator and still haven’t heard from the negotiator.

I am getting very frustrated. Is there anything I can do on my end to try to push the process along, or is it all up to the agents?”

Email beth@txhomereatly.com to discover how other sellers successfully did a short sale and avoided foreclosure.

Short sales can take a long time. But, usually the longest they should take is 3-4 months.

If the short sale hasn’t been approved by the end of 4 months, then it probably won’t be approved by the end of 12 months

The Texas Group Realtors have been able to get short sales approved as fast as 1 month. Most have been approved before the end of 3 months.

You mentioned that the agent “still hasn’t heard from the negotiator.” Did they ever think of maybe trying to contact the negotiator? It’s their job to help the seller sell their house and avoid foreclosure.

Calling the negotiator is part of the job. If I was you, I would find another short sale where the listing agent is experienced with short sales and doesn’t wait for the negotiators to call them.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at beth@txhomerealty.com I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (469) 523-1402.

Discover how other sellers successfully completed a short sale in Cedar Hill, Midlothian, Duncanville, Desoto and request a free consultation by emailing beth@txhomerealty.com.

Thinking about a loan modification? Our Dallas loan modification kit has the instructions you will need to get a loan modification approved with your bank. Email beth@txhomerealty.com

Thanks for reading this, Phillis Nealy.

Phillis is a Real Estate Agent at The Texas Group.

Phone: (469) 523-1402

A Realty company with Service as Big as Texas

View My homes for sale at www.southwestdallashomes.com.


Important Notice

Phillis Nealy, and The Texas Group Realtors are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.