All of the agents at Swope Investment Properties have experienced in Short Sales and Bank Owned Properties. We combine that experience with our expertise in Residential Income Properties to serve our clients in their distressed property transactions.
Short Sale Advisory
Many sellers who owe more on their property than its current value are looking for options. One option is the short sale. The term short-sale refers to a situation where the net proceeds from the sale of the property will not be sufficient to pay the outstanding debt on the property.
While we assist you in the real estate transcation of short sales and distressed properties, there are legal and/or tax consequences that may arise when lenders agree to release their lien on the property and accept less than what the seller owes. To ensure that the seller understands the obligations that may arise from a short-sale, we encourage sellers to seek professional advice from an attorney, accountant, and/or other qualified professional. We cannot provide sellers with legal, accounting, tax, or credit counseling advice and recommends that sellers contact the appropriate professional to answer any questions regarding these matters.
The following options may be available to the Seller in addition to a short sale:
REFINANCE: Replace the existing loan(s) with new and more favorable terms
SELL AND BRING CASH TO CLOSING: By curing deficiencies at closing a borrower can avoid the negative consequences of credit report damage which a short sale or foreclosure may cause.
LOAN MODIFICATION: Lender may be willing to change the terms of your mortgage, such as adding missed payments to the existing loan balance, reducing the interest rate or changing an adjustable rate to a fixed rate, or perhaps extend the number of years to repay the loan.
FORBEARANCE: Lender may reduce or suspend payments for a period of time and then agree to another option to bring the loan current.
SHORT SALE: A sale of the property in which the sales price is less than the amount owed to the lender(s) and the property owner is unable or unwilling to pay the deficiency at closing. The underlying lender(s) must agree to the provisions of the sale. A short sale avoids foreclosure on the property.
DEED-IN-LIEU OF FORECLOSURE: Lender may be willing to accept your property in lieu of foreclosure.
FORECLOSURE: Lender takes back the property or it may be sold to a 3rd party at public auction.
BANKRUPTCY: A legal procedure designed both to protect an individual or business that can’t meet its financial obligations and to protect the creditors involved.
WALK AWAY: By walking away, property will ultimately be foreclosed upon.