While the housing market news still isn't great, there have been a few rays of hope recently. If you've read any of these reports, you've heard some astronomical numbers regarding foreclosures. Some analysts are predicting that as many as 50% of the homes that sell in the next 2 years will be in some form of financial distress.

 

Foreclosures can be financially and emotionally devastating. Credit scores are ruined (reduced by as much as 300 points) and likely will remain on credit reports forever. Unfortunately, many homeowners proceed into foreclosure without any guidance whatsoever, not realizing that they have options.

 

You may have heard or read the term "short sale." A short sale is a real estate transaction where the property is sold for an amount that is less than what's owed against it. Among other benefits, a negotiated short sale can have minimal impact on ones precious credit rating, while reducing or even eliminating a huge debt-load.

 

Buyers can also benefit from short sale situations. In many cases these properties are selling below market price. And because the homeowner still controls the property, they are usually better maintained than those in foreclosure.

 

Short sales require more time and considerable communication with the lender.Closing these transactions can be tedious and require patience and knowledge of the entire process.

 

For the past several weeks I've been in classes covering both foreclosure and short sale processes. In the next couple of weeks I will receive my Certified Distressed Property Expert (CDPE) designation. Further, I have now personally dealt with both sides of short sale transactions.

 

If you know someone who is currently weighing the options of a financially distressed property sale, please pass along my contact information. Likewise, if you or someone you know is considering purchasing a home and would like to explore the short sale possibilities, I'm here to help.

 

One other note-- the Missouri Housing Development Commission (MHDC) has received money to use for down payment assistance on purchases of foreclosed properties. This money -- up to $14,999 -- has a 0% interest rate and is forgivable after 5 years. It's not for everyone and the money designated for this program won't last long. If you or someone you know would like to know more about this program, don't hesitate to call me.

 

Thanks for your time,

 

Rick Richardson

RE/MAX House of Brokers

417-841-1101