Massachusetts home owners struggling to make mortgage payments are often turning to doing a short sale as a means of escaping their debt.
If you are not familiar with the term, a short sale is when a bank or mortgage lender agrees to discount a loan balance because of a financial hardship on the part of the borrower. The home owner sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds from the sale to the lender.
One of the most important considerations when pursuing a short sale of your Massachusetts home is to make sure that the debt has been canceled!
As a Massachusetts Realtor that has been representing a number of home owners in a short sale, I can tell you there is always a sense of great relief when a short sale approval comes from the bank. Often times it is months of waiting and the uncertainty can wear on anyone that has gone through the process. Short sales are anything but short!
For the past few years I have been successfully completing short sales all over the Metrowest Massachusetts area. So far the success rate has been 100% for short sale approval. Given the fact that nationally the success rate is very low, this is an accomplishment I am proud of.
All of my short sales are completed with the help of a local attorney who works with me during the short sale process. The relationship has been tremendous and my seller clients have been the beneficiaries of our team work.
One of the things I have been able to count on is the fact that the attorney has gotten a release of debt from the lender.
This point is crucial for you to understand because there are lots of Realtors out there who are representing sellers in short sales that do not know anything about debt removal.
What has been coming to light recently is that a number of lenders are selling unpaid mortgages to collection agencies which in some states have years to come after you for a collection of this unpaid debt. Some of these collection agencies have been able to win court judgments where they can collect through repayment plans and even garnish your wages if necessary!
Can you imagine hiring a Realtor to get a short sale approval for you only to find out years later that there was no release of your debt. I am sure you would not be a happy camper!!
These short sales where the debt has not been released is opening up opportunities for companies and investors that specialize in preying on people who did not know any better. This is big business and is known in Real Estate circles as “scratch and dent”.
There is some relief in sight for some folks under the new Home Affordable Foreclosure Alternatives Program (HAFA) that started April 5th. This new short sale program aims to prevent banks that hold second-lien loans from pursuing collections from homeowners after the short sale.
Under this HAFA program sellers will receive notice that their service company has steered part of the sales proceeds to secondary lien holders in exchange for release and full removal of their liens. It is important to understand however, that this release would apply only to short sales done through the Home Affordable Foreclosure Alternatives program. Not all lenders will be participating in this program.
Above all else if you are doing a short sale make sure your representative gets the lender to sign off on a complete removal of debt on your property!
If you are considering a short sale here are some other short sale articles I have written that would be worthwhile to read:
Do you need to complete a short sale of your home or condo in Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA. Get in touch I would love to interview for the chance to represent your best interests.
I am successfully completing short sales through out the Metrowest area. So far, knock on wood, I have a 100% success rate for short sale approval.!
If you are not in the Metrowest Massachusetts area and need to do a short sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing!
About the author: The above Real Estate information on Massachusetts short sale debt removal was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at email@example.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 24+ Years.
Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.