Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: Austin TX Home Owners - Short Sale Process to Avoid Foreclosure

Austin TX Home Owners - Short Sale Process to Avoid Foreclosure

Short Sales in the Austin TX market are not abundant. In many neighborhoods, they are scarce.  In others, they are more prevalent. It's mostly price range driven, with most in the lower, first time home buyer price range.  Here are some great Austin TX Short Sale stats I posted.

Even though Short Sales as well as Foreclosures are not as common in Austin TX as they are in other markets, it's still good to know what they are and how to accomplish one timely in case you end up in this situation.

What's a Short Sale? A Short Sale, in general terms, is when a lender accepts a short payment to pay off a loan in full. For example, if you owe $200k and the lender agrees to accept $180k, you are paying the loan short, hence a "short sale". YES, this will go on your credit report! YES, it will show you didn't pay it in full. YES, a Short Sale looks better and scores better than a Foreclosure.

No, you may not buy a house immediately after going through a Short Sale. You must wait 2 years... though I'm sure the lenders are working on some kind of exceptions to some rules as I believe many relocation buyers don't have a choice if they're following a job.

How can a Short Sale get through the process in a timely manner?
Work with an agent, like me, who knows what to do and also has a team of people who specialize in getting Short Sales approved and closed! Sometimes, a Short Sale can take longer than 6 months to finalize. That's just ridiculous! If you have your ducks in a row, timely approvals can happen much quicker than that. In many cases, under 60 days, but I tell people to prepare for at least 3 months.

3 Months to close on a house? 6 Months to close?  When do I know to move out? Believe me, you'll know! Once your bank gives an actual approval on the Short Sale, all you wait for is the buyer's lender to approve their loan, and that's about 3 weeks, so you'll have plenty of notice.  NEVER wait until the last minute to figure out where you'll go once closing arrives.

How do I know what the bank wants for approval of my Short Sale? That's where an experienced agent comes into play. I have a checklist of every possible document the lender might need. By sending in everything at once, they can't come back weeks and months from now asking for more. You, as the home owner, need to work with me to jump through the hoops the lenders provide.

Hoops? What kinds of hoops?  Hoops of Fire!!  Just kidding...Most of the hoops, you'll never know about as I'm taking care of that from my end. The other hoops are the endless amounts of documents and paperwork they will require and you MUST provide. Because of their requests, you must be willing to go with the flow when I tell you that I need this and that. When you question or refuse to provide something needed, you hold up the process.

Working together as a team through an Austin TX Short Sale, we'll get your home sold quicker so you can move on with your life quicker and begin your fresh start rebuilding your credit.

If you're an Austin TX home owner, and you're in trouble with a potential foreclosure in your future, give me a call YESTERDAY, and I'll help you through the process. Waiting even one more day or one more week can put your options at jeopardy. Not everyone qualifies for a Short Sale, so let's get going on it now!

**Are You Packed Yet?** 

donna harris Realtor Austin TX blog

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.coma
Donna@DonnaHomes.com

Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way. 

For real time Austin TX listings, click here.

** #1 Agent in my Office for all of 2008 **

Copyright© 2010 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Real Estate - Austin TX Homes for Sale are Selling Strong * was first published on donnahomesblog.com

Comment balloon 5 commentsDonna Harris • September 28 2010 10:46AM

Comments

Donna, you are blessed to be in a market that's not dominated by short sales.  Giving this information is a benefit to your community.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 9 years ago

Good information Donna.  Here in my market pretty much every thing is either a short sale or REO.

Posted by Jim Patton, Realtor - Stanislaus ,Merced, San Joaquin Counties ( Aspire Home Real Estate 209-404-0816) over 9 years ago

I was reading a blog on here somewhere that said shortseller sellers will now have their credit just as wrecked as if it was foreclosed on. The debate was heavy as many argued... "where's the proof of such a claim." Later in the post the author provided some documents handed down from Chase. We'll see.

Posted by Greg Nino, Houston, Texas (RE/MAX Compass, formerly RE/MAX WHP) over 9 years ago

Gabe, We're not dominated, but the community doesn't understand that because the "national" news says so...

Jim, That's not good!

Greg, I've seen claims like that too over the past couple of years, but as long as it's showing the debt was paid with an agreed amount, I don't see it happening.

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) over 9 years ago

Donna,

If and when the "market" catches up to Texas, you'll have more short sales. Here they are all over the place, and in spite of the numerous agents here who claim to be experts, they still mostly fail. Due to no fault of the agent, usually.

The banks still prefer a foreclosure, as it does not impact their net bottom line as much as the short sale, due to bail out money for foreclosures.

Also the banks are still staffed mainly by two types of people, crooks and morons.

Posted by Jon Quist, Tucson's BUYERS ONLY Realtor since 1996 (REALTY EXECUTIVES TUCSON ELITE) about 9 years ago

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