PR Log - Jul 06, 2012 - Las Vegas short sale agent, Tania Michaels of Focus Commercial Group, has closed another short sale involving rental property.
“The owner was no longer able to obtain rents to cover the mortgage payment and the mortgage balance was 5 times the current market value. The owner was also completely out of cash reserves to keep paying the loan. This is, unfortunately, a story we hear all too often,” says Michaels.
Current estimates hold that 6.3 million U.S. residential property owners nationwide are more than 30 days late on their mortgage and in some stage of foreclosure. Compounding the housing problem is that nearly one fourth of all U.S. homeowners are ‘underwater’ on their mortgage—meaning they owe more on their home than they could net from selling it in today’s market.
“Too often,” Michaels observes, “the solution for investors who are in default on residential property has been to let the property slip into foreclosure. Some of the most sophisticated real estate investors don’t have all their questions answered when it comes to how a short sales work so they think their only option is to allow the bank to foreclose on them. We’re dedicated to getting the word out about short sales to avoid foreclosures.”
Extraordinary economic shifts have changed the dynamics of real estate transactions and the level of expertise needed by a real estate agent.
“Our goal is to understand the hardship of our clients and be an advocate for them, not the bank. In the first draft of this short sale approval letter, Chase retained the right to pursue our client for a deficiency. We responded with convincing evidence about the nature of our client’s hardship and were successful in obtaining a deficiency waiver in a second draft of the letter. To have this kind of success for your clients, you have to know how to build a defense. Practicing real estate today requires a warm heart and sharp mind,” reflects Michaels.
In a short sale transaction, the lien holder is willing to accept a current market sales price for the property even if that amount is less than the current mortgage balance, if the borrower has an acceptable hardship. Most lenders do not consider delinquency alone a hardship. This is where many residential real estate investors fall short of the guidelines which require the property owner to provide evidence of a true hardship like an income shortfall or insolvency.
Extensive property damage is also a real hardship that can cause a property owner to go into default. Funds that would normally go towards the mortgage payment are no longer available. “People ask me,” says Michaels, “‘Do I have to make repairs if I do a short sale? I can’t afford to make any more repairs.’ The answer is no, you don’t have to make repairs if you sell your property on a short sale. In the case of this rental property short sale with Chase, we had a collapsed roof on one side of the property. We were still able to procure a buyer who accepted that the seller would be making no repairs. Even with the complicated negotiations and property condition, we were still able to close the short sale in 3.5 months.”
The anxiety associated with missed mortgage payments and the fear of putting ones trust in the wrong hands causes property owners who are heading toward foreclosure to avoid seeking help or pursuing a short sale. Certified Las Vegas short sale agents are those who have proactively sought out the most respected designations and networks in the industry to help clients within the complicated and highly charged default property arena. Tania Michaels is a certified Las Vegas short sale agent with the CDPE® designation. Adept at negotiating with lenders, Michaels is considered an expert in the short sale industry by her peers.
ABOUT Tania Michaels is a REALTOR® and a Las Vegas CDPE® short sale agent. This multilingual, multifaceted, award-winning 16-year real estate professional in Las Vegas, specializes in representing sellers in the sale of their property (including short sale negotiations (http://michaelsrealestate.com/nevada-short-sales/)) and land acquisitions. Las Vegas homeowners, apartment owners, and investors may benefit from her experience with in the residential and land sector which allows her to offer insight from the vantage point of an all-around insider.