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Who Should Think About Short Sales?

Let’s face it, no one wants to think about a short sale with regards to their home. But more and more Americans today are finding this to be a reality. There are many significant factors that lead to a decision to apply for a short sale.alt="Sherry Fields Real Estate Short Sales"

The phrase underwater, means that a homeowner purchased the home and received a loan that in today’s market is higher than the value of the home. Some of this occurred because of predatory lending wherein unscrupulous lenders provided loans beyond the ability of the applicant to repay. In other words lenders were encouraging buyers to purchase more home than they could actually afford. This lead to a large number of foreclosures that impacted the value of homes negatively. Thankfully the vast majority of these lenders are no longer in business.

In tandem with this, lenders provided what is called an ARM, and adjustable-rate mortgage. Buyers did understand that the rate would change on their mortgage however, very few understood how significantly the rate could change. In many cases, their monthly payment doubled. Most buyers expected their loan to increase incrementally and slowly and were devastated with the actual increase to their monthly payment.

During this same period, lenders were offering what is termed a balloon loan. Often times this loan was an interest only loan that did not pay down any of the capital, so that when the loan ” ballooned” the full amount was due and payable on that date. Buyers were lulled into believing that they would re-qualify at the time that their loan was due, and were shocked to find out they did not.

Job loss, divorce, illness, and death are several other reasons why homeowners are faced with the choice of moving toward a short sale or foreclosure. The government has provided many avenues to assist homeowners in these current economic times.

As we have seen this negative spiral has influenced the real estate market for over 5 years. Just now we are seeing positive signs and nationally the median home value is up 10% and distressed properties down 7% as reported by NAR (National Association of Realtors).

Today many banks and government lending agencies have whole departments just for loss mitigation. There are several ways that they are willing to assist homeowners to avoid foreclosure.

It is important to recognize early that you have options and begin negotiations with your lender. It is equally important to work with a qualified real estate agent who can guide you through this process.

I have been certified By the National Association of Realtors as a short sale foreclosure resource or SFR, additionally I have taken extra training at the local level to deal with short sales and foreclosures. For the last several years I have been working with most of the major banks on a variety of platforms and have been certified with them for short sales and foreclosures.

Please contact me at 406–329–2044 for further information.

About the author

Sherry Fields Sherry Fields has been working in real estate since 2002. Working with the development team for the Hilton Garden Inn gave her strategic information on the commercial real estate market in Missoula. Broadening her scope she moved into the residential market and earned the designation SFR in short sales and foreclosures. Currently affiliated with Prudential Montana Real Estate, she works with both buyers and sellers "building relationships so you can buy & sell with confidence". Sherry Fields has recently earned the CREN designation - Certified Real Estate Negotiator. While price is a large part of negotiation - it is also about timing everything from the closing date to inspections, appraisals, home insurance - and it is about negotiating items that can show up in home inspections to achieve a mutually acceptable outcome.

**************************************************************************** © 2016 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com *******************************************************************************



2 Responses to “Who Should Think About Short Sales?”

  1. […] Read more … Posted in Resources […]

  2. Heather Esposito says:

    It iѕ hard to find well-informed people on HUD, however, you sound like you know what you’re talking abοսt! Thanks Heather

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