Kalamazoo Real Estate – According to statistics from RealtyTrac, the company that keeps the stats nationally, the rate of foreclosure activity is tailing off. Their mid-October report shows how a precipitous drop in September helped bring the foreclosure number to the lowest level since the fourth quarter of 2007. Some experts are suggesting that for Portage and Kalamazoo area homeowners who watched their nominal equity dive while foreclosures stacked up: the worst may be over. Other experts are still predicting that there will be another wave of foreclosures that will hit the market in the next year as there are still many homeowners with hardships who owe more money than they owe on their house.
One way stressed property owners can avoid foreclosure is to enter a short sale. Even though we are seeing that the overall price curve is now flat or on the rise, mortgage interest rates remain so low that the opportunity to purchase a home or a home with investment potential beckons.
We are guessing that most people now understand that what a short sale is. It is a sale where the lender(s) agree to take less money for the house than is owed to them. Some smart distressed sellers turn to this procedure as a way to avoid foreclosure. A short sale does not create as negative a hit on the homeowners credit. Of course, if it were a simple process, everyone in that situation would turn to it. The actual communication with the lender, the follow-up with the lender and the paperwork is involved. Many homeowners or inexperienced REALTORS who have tried to submit short sales have ended with a foreclosure anyway, because of the difficulty. The Veenstra Team short sale process makes it a much more manageable process for the home seller. Our team will explain all the steps in the process, the pros and cons of a short sale, and any other options available so that the homeowner can make the wisest decision for them. Once a decision is made to pursue a short sale, our team directs the gathering of all the information and documents for the short sale packet that is submitted to the lender. The requirements vary by lender so it is really important to have a team in place that has done many of these transactions and does it full time. The Veenstra Team has team members that only do short sales. And they are successful at getting 95% of the short sales they start to a successful finish…which includes the option that the homeowner does have to pay any money to the lender(s). There is never any charge by the Veenstra Team for the handling of the short sale.
A very important requirement of any short sale is a “hardship letter”. This is a letter describing the circumstances that led the borrower into the current situation, as well as the attempts already made to find an alternate solution. It also details the reason no other solution exists outside of a short sale. Our short sale team will provide the guidelines required by the lender for this hardship letter.
It is important to remember that every bit of information submitted on the short sale information packet has to be true and accurate, so it is vital that each document be thoroughly understood before signing. Our team ensures that you understand what you need to sign. For anyone considering selling a Portage and Kalamazoo area home — whether traditional or short sale – know that we always offer free consultations. We can help you determine your current options. Consultations can always be confidential — and we are always happy to help.