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    We find a growing number of companies asking about "short sales" and if they represent a viable solution to increasing concerns of loss-on-sale among relocating employees. So what are short sales? According to the California Association of REALTORS®, “a short sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan.”

    This may sound ideal; but, typically, the employee must demonstrate to the lender that he or she has no other assets to settle the debt, which can be very time consuming. Furthermore, despite the Mortgage Forgiveness Debt Relief Act of 2007, not all debt forgiveness will be tax exempt, which further complicates the transaction and could cause the employee deeper financial burden.

    A short sale may be better for the employee’s credit rating than going through a foreclosure, and it may be less costly for the company then funding a bail out; but the majority of companies handle these “short sales” on a case-by-case basis. Typically, because of the delays and complexities of the bank being involved in negotiations, it may be advisable to handle these transactions outside of the home sale program, reimbursing the employee for documented closing costs.

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    comment 1 Comment
    • LaTonya Johnson
      05-23-2008
      LaTonya Johnson
      I have created a workbook that equips homeowners with information regarding foreclosure prevention. It is my view that borrowers should receive this information early on in the buying process. As you know, foreclosure is a stressful and very private matter. Therefore, many homeowners freeze up and stop communicating if they become late on mortgage payments. It truly seems as though they would fair better if the information was readily available prior to an issue. For example, a book that they can keep with their important house papers. What are your thoughts?

      I would like to offer the book wholesale to industry professionals.

      Take a look at the following link: http://www.lulu.com/content/1197270

      Many real estate professionals are being drug in to lawsuits because of issues that occur regarding circumstances that they (sometimes) knew nothing about. By providing the workbook to your clients, it will show that you are one to go above and beyond to ensure successful homeownership.

      I provide examples that are related to Texas in the workbook; yet the laws for all states are on my website. All other information is general and can be used from state-to-state.

      Homeowners will learn:

      Ø The secret options that lenders would never tell you about

      Ø Several sources for cash to help you with late payments

      Ø How to research information regarding your home

      Ø The advantages and disadvantages of bankruptcy

      Ø How to think like lenders, realtors and investors to optimize your efforts in saving your home

      www.liveforeclosurehelponline.com

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