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  • Member You - Lenders Give Away Instant Equity With Real Estate Short Sales

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    th the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intr
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    What is a Short Sale?

    A short sale happens when a lender is willing to sell a property for less than the total amount owed by the borrower. The property is worth less than owed therefore, has no equity and the homeowner is seriously behind in payments. In many circumstances more than one lender is involved. Even if the property is worth at or slightly above the amount owed, the owner could still be upside down when other factors are considered such as agent commissions, delinquent taxes, homeowner dues and other standard closing costs. A short sale could offer a workable solution for all parties involved, helping the distressed homeowner avoid foreclosure.

    Who are the players?

    Let’s say you have a motivated seller who absolutely must sell otherwise face foreclosure. They have missed many payments and yet do not want the property to go into foreclosure. The seller consents to the buyer or agent negotiating with the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intri

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    usly behind in payments. In many circumstances more than one lender is involved. Even if the property is worth at or slightly above the amount owed, the owner could still be upside down when other factors are considered such as agent commissions, delinquent taxes, homeowner dues and other standard closing costs. A short sale could offer a workable solution for all parties involved, helping the distressed homeowner avoid foreclosure.

    Who are the players?

    Let’s say you have a motivated seller who absolutely must sell otherwise face foreclosure. They have missed many payments and yet do not want the property to go into foreclosure. The seller consents to the buyer or agent negotiating with the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intr

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    ommissions, delinquent taxes, homeowner dues and other standard closing costs. A short sale could offer a workable solution for all parties involved, helping the distressed homeowner avoid foreclosure.

    Who are the players?

    Let’s say you have a motivated seller who absolutely must sell otherwise face foreclosure. They have missed many payments and yet do not want the property to go into foreclosure. The seller consents to the buyer or agent negotiating with the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intr

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    Let’s say you have a motivated seller who absolutely must sell otherwise face foreclosure. They have missed many payments and yet do not want the property to go into foreclosure. The seller consents to the buyer or agent negotiating with the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intr
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    th the lender to accept a short sale. What needs to take place in order for this to happen? The process can be somewhat complicated however, many say worth the hassle since discounts are often in the tens of thousands of dollars. Intrigued? Read on.

    Why are lenders giving away instant equity?

    Foreclosures are skyrocketing and most experts agree that this trend will only increase in 2007 and beyond. In fact, The Center for Responsible Lending conducted a study in which predicts that 1 in 5 sub-prime loans issued in the past two years will enter some stage of foreclosure. Since sub-prime loans account for approximately 25% of all mortgages issued, the expected impact is thought to be staggering.

    Lenders do not want to be stuck with houses they cannot move. Since lenders are not in the property management business, they figure it is better to accept a discounted amount than to take the property back in foreclosure and risk having to hold it for an indefinite period of time. If they do foreclose, aside from costly legal fees, they also face high carrying costs including tax payments, insurance, homeowner’s dues and other maintenance issues. I

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