Short Sales are common nowadays.. but what is a shortsale?
A shortsale is when the owner owes more than they are able to sell their home for. In this situation there are two options: either the seller can wait for the value to increase or if they are in a situation where they are forced to sell, have a shortsale. When you have a shortsale, the seller is again faced with two decisions, either bring the additional funds to settlement or try to negotiate with the bank and get them to accept less.

Many people now are successfully negotiating with the banks to show the loan as being paid in full, even if it is not paid as agreed.

Why would someone prefer a shortsale over a foreclosure?

While both a shortsale and a foreclosure hurt your credit, a shortsale reduces your FICO score by 80-120 points where a foreclosure reduces your FICO score by 300-400 points and remains on your credit report for 7 years. So who wouldn't try to save their credit?

What are the banks requiring in order to accept a shortsale?

Each bank I have worked with all required the owner to be atleast one payment behind in their mortgage. The homeowner could have very little assets and have a valid reason for not being able to pay anymore, such as a job loss.
The banks are also requiring that the home be actively marketed by a Realtor and the Realtor keep detailed records of their marketing efforts. There is additional paperwork to be filled out and alot more work to be done by your experienced Realtor. The banks are also requiring that the purchasers can't be a family member or have any blood relation to the current owner.

If done correctly, a shortsale could save your credit and eliminate your stress.

The best part of this is Move4Free will also negotiate with the bank and have them pay all Realtor commissions. You come to the settlement table and OWE NOTHING!

Call the Move4Free Team today to discuss your situation at no obligation and your call is completely confidential.

Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1. Check your credit.
Before you apply for a home loan, regardless of your credit, it's a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it's easier to address them before you have found a house, than after you have found a house and are trying to close your loan.
If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances - like a loss of a job or medical bills - let them know so that they understand that it is not likely to happen again in the future.
2. Get approved before you buy.
An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.
Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.
While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them - your monthly income and your monthly debt - and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a pre-qualification has little value when purchasing a home.
3. Find a great buyer's agent.Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer's agent, they are less likely to negotiate the best price or contingencies for you.
A buyer's agent's job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer's agent or a seller's agent. After spending a lot of time with a Realtor, it's natural to feel like you're a team. But if they are not negotiating for you, then they are not on your team.

For the remaining 3 steps, call in your request today for the full report and they will be emailed or Mailed to you immediately!

Seventy percent of Americans have never seen their own credit report or credit score. Do you know what your credit score is?

That score impacts a surprising cross-section of life. Lenders use it to evaluate your eligibility for credit cards and loans. Insurance companies may base your premium on it. Potential employers often use it to assess your character.

Over one hundred variables are included in the calculation of your credit score, so just paying your bills on time, as important as that is, may not rescue you from other credit pitfalls.
Mind Your Own Business

Be an active guardian of your credit. Before you consider taking out any loans, send for a copy of your credit report and credit score. You want to see in advance exactly what the lender will see.

Bills long overdue or overlooked can show up as a blotch on your credit. A cable bill that
didn’t make it to your new address. An invoice lost in the mail. A department store error. Since it can take 30-60 days to resolve disputes and inaccuracies, take care of your credit first, then go shopping.

Call or email today for your free article that urges you to know, raise, and maintain your credit score. Don’t wait another minute.