Signs of Summer -- SHORT SALES!

Not so long ago a "Short Sale" meant you dashed to the local department store to shop for for the latest summer fashions. These days you are more likely to hear the term as it relates to real estate sales rather than clothing sales.

A short sale in real estate occurs when a home sells for less than the amount owed plus selling expenses. It is a common occurrence in much of today's real estate markets. Edina Realty estimates that approximately 35% of their home sales in 2009 were short sales or foreclosures. Almost every economist expects this trend toward short sales and foreclosures to continue into 2011.

So what does a seller do when they need to sell their home but can't sell it for enough to pay off their current mortgage?? This is where an experienced real estate agent such as ourselves can help! Banks, in general, would much rather negotiate a short sale with the home owner rather than allow the home to go to foreclosure.

We can help list your home, negotiate an offer contingent upon a banks approval of a short sale, and negotiate with the bank on your behalf for the approval of the short sale.

Banks work with sellers to provide several options to the home owner. Usually we can negotiate a small loan from the bank to make up any difference. This happens when home owners have wrapped their car and boat payments into their home mortgage or have any other assets. We can help arrange a car/boat loan thereby reducing the total amount of the home mortgage.

If you would like to sell you home but feel it will not sell for an amount high enough to pay off your mortgage plus selling expenses AND you've suffered one of the following hardships, you are the perfect candidate for a short sale:

• Mortgage payment increase or adjustment
• Loss of job
• Business failure
• Damage to property
• Death of spouse or family member
• Severe illness
• Inheritance
• Divorce/separation
• Relocation
• Military Service
• Insurance or tax increase
• Reduced Income
• Too much debt
• Incarceration

In a market where the average home in the nation has lost 25% off its peak value short sales may just become the norm for the next few years. Call us and we'll help you navigate the maze of today's real estate market.