Mark Roncone

In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain as a potential liability for the Mortgagor / Borrower. The bank's opportunity of pursuit of a deficiency judgment will vary from state to state.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation. An important thing to know about a short sale is that it has to be handled by a real professional who knows how to work these deals. Most REALTORS® don't handle short sales.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack of), by determining the probable selling price from a Broker Price Opinion BPO or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults.

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I wanted to let everyone know that I have changed my office location. No worries, I am still with RE/MAX! My new office is RE/MAX Professionals Select located in Naperville. I moved from my previous location last week. The previous office was going through an ownership change so I decided to make the move. I can still be reached at 630-212-1118 or mroncone@remax.net. Visit my web site at www.markroncone.com.

Mark Roncone

A local new home builder is offering their model homes for sale fully furnished at a new deeply discounted price. NO SSA! The builder has paid the full amount due! Contact me now to get more details before they are all gone! It does not cost you the buyer one penny to work with me. The builder pays my commission when you buy your new home! Email me now at mroncone@remax.net.

Buying your first home can be very tricky in a normal real estate market. It can make your head spin today. You hear real estate/mortgage terms like SSA, short sale, foreclosure, bank owned, predatory lending, as is, needs work, fixer upper and many more! Not to mention we have many new home builders going bankrupt! I can and will help guide you through the real estate buying process with no expense to you the buyer. The seller pays the real estate commission and it will not cost you the buyer one penny. You can get my expert advice for FREE. You don't have to go it alone! Contact me today at 630-212-1118. I can also have one of the many excellent loan officers I work with contact you and get you pre approved before you go shopping. This is a very important first step in the home buying process. Call 630-212-1118 or email mroncone@remax.net.

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Aurora IL has 71 homes priced below $100,000! These homes are in need of work and are in as is condition. Smart investors are taking advantage of the current real estate market. This is the time to buy real estate, fix it up and rent it out! I am here to help. Contact me to today to start having these homes sent to you as soon as they become available. 630-212-1118 or mroncone@remax.net. Search homes for sale at www.markroncone.com/activerain.