Meeting August 27, 2009 – Speaker Mary Kubalewski – RE/MAX Suburban
First I would like to thank Rich for taking notes for me this week, as I was out sick this week and was unable to attend the meeting.
This weeks educational portion or network nugget was:
Your number of referrals received is a direct reflection of attendance as it builds confidence that you are a trust worthy / dependable person. Once trust is built your fellow group members will feel more comfortable referring you out.
SPEAKER
| Re/Max Suburban Mary Kubalewski 1310 N. Roselle Road Schaumburg, IL 60195 Visit Website Email 847-338-9318 |
Mary “K” is a real estate broker who specializes in residential real estate in Chicago’s Northwest Suburbs. With more than 20 years experience she works equally with buyers & sellers and is available 7 days a week for your convenience. |
This week Mary spoke on Short Sales. A Short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.
In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance.
A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from a Broker Price Opinion BPO (also known as a Broker Opinion of Value (BOV)) or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.
If you know of anyone looking to do a short sale give Mary “k” a call because she sells homes not cosmetics.
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