Colorado Springs Real Estate: Short Sales Save the Day

Colorado Springs real estate: Short Sales Save the Day



Short Sales are the hot real estate topic in Colorado Springs.



Faced with foreclosures, banks and homeowners are working with industrious market professionals to sell property at lower costs. This is the case with homes for sale in Colorado Springs as well.



If a homeowner is behind on payments and is in danger of foreclosing, a realtor can assuage the situation with a short sale.



Short sales are tricky, though. According the Colorado Springs Business Journal, it takes a dedicated, savvy realtor to complete the process.



The article reports:



There are several keys to the process, but one of the most important is to contact the borrower’s lender. That’s a lot easier when the lender is local. Otherwise, you end up spending hours trying to track down loan information — and even more to get current home values, public records or to work through loan serving companies.



Short sales are an alternative to foreclosure. They sell property for less than what is owed by the homeowner. They offer the lender roughly 80% of the property's value, which, obviously, is better than losing out completely.



A foreclosed home faces challenges. Banks need to reestablish its value. If the home is damaged, they need to pay for repairs. Broker commissions are often high, and it may takes many months or even years to sell the property again.



Short sales, then, give banks options. But it takes a dogged realtor to put the deals together.



The article continues:



Tiffany Lachnidt, team leader of The Distinctive Group, a Keller Williams Real Estate affiliate, was drawn head-first into distress transactions during 2007 when an investor-client asked her to list and sell seven residential properties facing foreclosure.



“We got them all sold within a year,” she said.



In what seems to represent the new “norm,” half her business consists of homes in danger of foreclosure, bank real estate owned homes (REOs) or short sales.



Short sales often require the realtor to work quickly and effectively. If the lender is not local, realtors need to put pressure on lenders to provide loan and property information. Once the information is acquired, the realtor needs to complete the loan submission packet. Then a delicate balancing act transpires. The realtor must determine when and if a real estate attorney is required, answer questions about appraisals on first, second, or possible even third time mortgages, and attract potential buyers, all before the home goes into foreclosure--a big challenge, especially if the homeowner is already behind on payments.



Difficulties aside, short sales are getting property sold. The process demonstrates a realtor's bold, creative verve, and a circumstantial willingness on the part of the lender. A struggling market needs smart alternatives to survive. It seems realtors and banks realize this.



Allow an experienced Colorado Springs REALTOR to use their many years of experience to help you TODAY! It will be well worth your time to make that decision.



Please contact Mike Stuard for more information about Colorado Springs commercial real estate.