| Short Sales are the hot real estate topic in Colorado | | | | Group, a Keller Williams Real Estate affiliate, was |
| Springs. | | | | drawn head-first into distress transactions during |
| Faced with foreclosures, banks and homeowners are | | | | 2007 when an investor-client asked her to list and sell |
| working with industrious market professionals to sell | | | | seven residential properties facing foreclosure. |
| property at lower costs. | | | | “We got them all sold within a year,” she |
| If a homeowner is behind on payments and is in | | | | said. |
| danger of foreclosing, a realtor can assuage the | | | | In what seems to represent the new |
| situation with a short sale. | | | | “norm,” half her business consists of homes |
| Short sales are tricky, though. According the Colorado | | | | in danger of foreclosure, bank real estate owned |
| Springs Business Journal, it takes a dedicated, savvy | | | | homes (REOs) or short sales. |
| realtor to complete the process. | | | | Short sales often require the realtor to work quickly |
| The article reports: | | | | and effectively. If the lender is not local, realtors |
| There are several keys to the process, but one of | | | | need to put pressure on lenders to provide loan and |
| the most important is to contact the borrower’s | | | | property information. Once the information is |
| lender. That’s a lot easier when the lender is | | | | acquired, the realtor needs to complete the loan |
| local. Otherwise, you end up spending hours trying to | | | | submission packet. Then a delicate balancing act |
| track down loan information — and even more to | | | | transpires. The realtor must determine when and if a |
| get current home values, public records or to work | | | | real estate attorney is required, answer questions |
| through loan serving companies. | | | | about appraisals on first, second, or possible even |
| Short sales are an alternative to foreclosure. They | | | | third time mortgages, and attract potential buyers, all |
| sell property for less than what is owed by the | | | | before the home goes into foreclosure--a big |
| homeowner. They offer the lender roughly 80% of | | | | challenge, especially if the homeowner is already |
| the property's value, which, obviously, is better than | | | | behind on payments. |
| losing out completely. | | | | Difficulties aside, short sales are getting property sold. |
| A foreclosed home faces challenges. Banks need to | | | | The process demonstrates a realtor's bold, creative |
| reestablish its value. If the home is damaged, they | | | | verve, and a circumstantial willingness on the part of |
| need to pay for repairs. Broker commissions are | | | | the lender. A struggling market needs smart |
| often high, and it may takes many months or even | | | | alternatives to survive. It seems realtors and banks |
| years to sell the property again. | | | | realize this. |
| Short sales, then, give banks options. But it takes a | | | | If you would like to find information about Colorado |
| dogged realtor to put the deals together. | | | | Springs Real Estate, visit the Real Estate Book, the |
| The article continues: | | | | web's most comprehensive resource for |
| Tiffany Lachnidt, team leader of The Distinctive | | | | homeowners and homebuyers. |