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For years property values have soared, giving homeowners greater equity in their properties remortgages bad credit they could have imagined. Many homeowners took advantage of the rising home values and cashed out with home equity loans. Lenders, confident in the real estate market's growing strength, freely gave new home buyers loans for 95-100% of the home's value. Once the market slowed, many homeowners had little or no equity left in their property. Should these homeowners need to sell their property they find that there is not enough equity in the property to pay the mortgage, broker fees and other closing costs.

Some of your clients may be able to bring cash to the closing for the shortage. Many homeowners, unable to sell the property due to the shortage, default on the mortgage and eventually, the property is foreclosed. When a client is faced with this zero or negative equity situation, a short sale may be the solution.

A short sale occurs when a lender accepts a reduced amount to pay off the mortgage at closing instead of foreclosing on the property. As the name indicates, short insurance quotes online apply to sales, not refinances. The seller must be unable to pay the shortage. The buyer must be an unrelated party and it must be an arms length transaction.

Some pointers on short sales:

1. Start early! Run the numbers when your client agrees to hire you. If the numbers don't work- or come close- have your client immediately contact his lender about a short sale to request the instructions, forms and necessary documents. I have often drafted sample HUD-1 Settlement Statements for realtors before taking a listing so that this issue may be resolved early.

2. Get Professional Assistance. A short sale is not an easy process. It is lengthy and involves making many phone calls, Arizona Lemon Laws letters, completing forms, and obtaining and submitting documentation. Gourmet Food Gift Basket an attorney to assist the seller may insurance quotes online speed up the process and ensure that it is done correctly for your client. Your client should also discuss the short sale with his/her accountant as to the instant auto insurance quotes consequences.

3. Advise the Closing Agent. Once you have a buyer, advise the title company or closing agent, in writing, as soon as possible, that there is a short sale. Otherwise a miscommunication could result in a botched closing, where the closing agent expects the seller to bring a shortage check to the closing table.

In this changing real estate market offering creative solutions to your clients sets you apart from other realtors. Contact a professional to discuss this available option.