*Note: I first wrote this post on Sept. 28, 2007- over two years ago. But because the need for competent, experienced Realtors who specialize in short sales in Dayton Ohio has increased tremendously since then, I’m reposting. Short Sales are not easy, but they are not impossible either, and since I first wrote this, Realty Central has begun a comprehensive Short Sale Plan to increase the chances of helping sellers who are in a position to take advantage of this foreclosure alternative. You may not qualify for a Short Sale Plan, and a short sale may not be the best choice for you, but you will never know unless you talk to a real estate agent who has short sale experience. You do not have to wait until you are facing foreclosure. If you need to sell your house, and are looking for an alternative to foreclosure, call me to see if I can help. Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781

Once upon a time (like say… a year ago) the term “short sale” was rarely heard in Dayton, but today, nearly everyone has heard of a short sale even if they are not sure what it means.

The term “short sale” refers to a home, listed for sale, that the lender has agreed to accept less than the amount owed on a property, meaning they will come up short on the sale. It’s a bit of a misnomer as short sales can be complicated and take longer than a traditional sale.

Why would you consider a short sale as a seller? If you are unable to make your mortgage payments, a short sale will not damage your credit as it would by a foreclosure. Clark Howard discusses that here. Why would a buyer in Dayton Ohio consider a short sale? Often, you get a property for less than Fair Market Value, saving you money, and the home might be in better condition than a foreclosure that has been sitting vacant for an extended period of time, although that varies from property to property.

MSN.com has some excellent advice on what to do if you begin to fall behind on your mortgage payments. The key is to act quickly and responsibly. You bought a home, I’ll assume you are a grown up, so if for whatever reason you cannot make your payments, you need to contact the lender at the first sign of trouble.

My experience is that most lenders will allow you time to try to sell your home through a short sale if you have contacted them early. When you know that you will not be able to make your payments, contact your lender and ask for the Loss Mitigation Dept. At this point, the Loss Mitigation Dept is going to have you prove that you are truly unable to repay the loan. Remember what it was like to apply for that loan? You can think of the short sale process as un-applying for the loan.

A few benefits to the seller:

• You can remain in the property during the sale.
• You may be released from liability with the loan.
• You have time to make other living arrangements.
• You may be able to buy the property back from a third party.
• You can avoid a foreclosure on your credit history.
• You may be able to avoid bankruptcy.

You need to be aware of possible tax issues as well, as the IRS may consider this income, and tax you on this. Check with your accountant to understand how a short sale will affect you.

I can’t stress enough- you must act at the first sign of trouble. And, if you need help now, contact Theresa Lussier, THE HOME GROUP REALTY, 937-478-7781