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How To Avoid Foreclosure In Minneapolis Through Short Sales
- By Kevin Curtis
- Published 03/19/2009
- Real Estate
- Unrated
If you have ever been in the position of facing foreclosure on one or more of your properties, you may have heard of a short sale. The short sale is a way for a borrower to retire a debt with a lender without having to pay the whole debt owed. This is achieved by selling the property to a third party buyer. Often, the resulting sale is less of a money loss than a foreclosure would be and does not totally destroy the borrower's credit record.
In other words, if you are facing foreclosure, you can make a deal with your lender to sell your property and pay them the amount you received to close the debt. This works because lenders hate foreclosing on properties as much as the property owner hates having it happen to them.
Foreclosures Hurt Everyone
The real estate market in Minneapolis has changed dramatically over recent years. The ever changing economy has its ups and downs which inevitably bring continued changes to the housing market.
As the present economy maintains its current lull, more and more property owners are finding themselves in financial trouble. The properties they own may not be worth as much as is owed on them. Who wants to continue paying for a property that costs more than it is worth?
Other property owners simply can't afford to continue paying for their property any longer. Add adjustable rate mortgages to the mix and it's no wonder how many foreclosures there are these days.
Foreclosures not only hurt the homeowner, they hurt the lenders, the housing market, the local economy and the neighborhood. By allowing the option of a short sale, the seller maintains much of their credit, the home values in the area remain steady and lenders lose less than they would in a foreclosure.
Knowledgeable Minnesota Realtors
There is a national organization for
Realtors that trains them to understand and solve problems that relate to short sales. It is important that you work with a real estate professional who knows the ropes when dealing with short sales to avoid foreclosure.
The short sale process differs depending on the type of loan on the property. A trusted Minnesota real estate agent with expertise in short sales is invaluable to these complicated transactions.
In addition to the typical people involved in a normal property sale, short sales also require the following people:
* The seller's lender
* Lien holders
* Insurers
* Counselors
These are just the extra people involved. There are also other problems that come with short sales. These include mounds of paperwork, loss mitigation departments and appraisals that don't reflect seller problems or other neighborhood foreclosures.
Circumstances That May Warrant A Short Sale
You may not be in immediate danger of foreclosure, but there are several circumstances that can put you there quickly. Here are some other reasons you may want to consider a short sale as a means to avoid foreclosure:
* Your mortgage payments are too high
* You owe more than your house is worth
* You are tired of getting calls from lenders
* You have suffered a recent loss of income
* You have health issues
* You want to avoid or minimize damage to your credit history
* Your interest rate is about to rise
* You don't have enough equity in your property to sell at break-even or higher
Lack of knowledge should not prevent you from taking action to protect your credit and your future. Being proactive during economic hard times is the key to your financial survival. If you are considering a short sale in order to avoid foreclosure, consult a knowledgeable Minnesota real estate expert. You will then have the opportunity to avoid the heartache of foreclosure and save your credit.
In other words, if you are facing foreclosure, you can make a deal with your lender to sell your property and pay them the amount you received to close the debt. This works because lenders hate foreclosing on properties as much as the property owner hates having it happen to them.
Foreclosures Hurt Everyone
The real estate market in Minneapolis has changed dramatically over recent years. The ever changing economy has its ups and downs which inevitably bring continued changes to the housing market.
As the present economy maintains its current lull, more and more property owners are finding themselves in financial trouble. The properties they own may not be worth as much as is owed on them. Who wants to continue paying for a property that costs more than it is worth?
Other property owners simply can't afford to continue paying for their property any longer. Add adjustable rate mortgages to the mix and it's no wonder how many foreclosures there are these days.
Foreclosures not only hurt the homeowner, they hurt the lenders, the housing market, the local economy and the neighborhood. By allowing the option of a short sale, the seller maintains much of their credit, the home values in the area remain steady and lenders lose less than they would in a foreclosure.
Knowledgeable Minnesota Realtors
There is a national organization for
The short sale process differs depending on the type of loan on the property. A trusted Minnesota real estate agent with expertise in short sales is invaluable to these complicated transactions.
In addition to the typical people involved in a normal property sale, short sales also require the following people:
* The seller's lender
* Lien holders
* Insurers
* Counselors
These are just the extra people involved. There are also other problems that come with short sales. These include mounds of paperwork, loss mitigation departments and appraisals that don't reflect seller problems or other neighborhood foreclosures.
Circumstances That May Warrant A Short Sale
You may not be in immediate danger of foreclosure, but there are several circumstances that can put you there quickly. Here are some other reasons you may want to consider a short sale as a means to avoid foreclosure:
* Your mortgage payments are too high
* You owe more than your house is worth
* You are tired of getting calls from lenders
* You have suffered a recent loss of income
* You have health issues
* You want to avoid or minimize damage to your credit history
* Your interest rate is about to rise
* You don't have enough equity in your property to sell at break-even or higher
Lack of knowledge should not prevent you from taking action to protect your credit and your future. Being proactive during economic hard times is the key to your financial survival. If you are considering a short sale in order to avoid foreclosure, consult a knowledgeable Minnesota real estate expert. You will then have the opportunity to avoid the heartache of foreclosure and save your credit.
Kevin Curtis
Kevin Curtis is a licensed agent with RE/MAX Advantage Plus. He is The Minnesota Real Estate Team's 2007 Agent of the Year. Kevin and his team provide great service and ongoing insights into the Minnesota Real Estate market at MinnesotaPropertiesOnline.com.
View all articles by Kevin Curtis