In response to challenging real estate market conditions, Coldwell Banker Chesapeake Real Estate, with offices in Easton and Chestertown announced the addition of a “Short Sale Strategy” to its value platform.
“Twenty-five percent of mortgages nationwide are underwater”, says Hugh Smith, Broker of Coldwell Banker Chesapeake Real Estate, “The problem may not be quite that acute on the Upper Eastern Shore, but we know both statistically and anecdotally that a lot of our friends and neighbors are losing sleep over their mortgages. This strategy is in addition to, not in place of, our robust general brokerage practice”
A mortgage that is “underwater” is a mortgage that is larger than the current fair market value of a property. This circumstance can make life very difficult In the event a seller needs to sell for economic or lifestyle reasons.
“We find there is a lot of confusion in the industry and among the public regarding upside down mortgages”, says Smith, “A lot of people believe that foreclosure is the only answer and stop paying their mortgages. They are frozen by fear and uncertainty.”
“The truth is that lenders do not want to foreclose on people’s homes.”, Says Smith, “most banker prefer that distressed borrower s find a real estate Broker knowledgeable of the short sale process and get their property sold in a orderly and timely fashion.”
A short sale is an Agreement where a lender agrees to accept a payoff on a loan for less than the balance owed. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property following a foreclosure. A short sale is also far less damaging to a borrower’s credit than a foreclosure.
“We believe this market niche is both growing and durable on the Eastern Shore”, says Smith, “based on forecasts we believe these market conditions will persist for another 3-5 years. Our industry will have to get a lot smarter to move this shadow inventory through the system so that market value s will stabilize.”
Coldwell Banker Chesapeake Realtors has posted a website, www.CBChesapeakeCAN help.com” , to give distressed property owners a single source where they find, in confidence, alternatives to foreclosure. The site will include answers to Frequently Asked Questions about foreclosre and short sales, a “Seller’s Homework” download that distressed property owners can use to assemble all the information required , and a step-by step business plan to successfully complete the short sale process.
Nineteen associates at Coldwell Banker Chesapeake Realtors have completed the two-day course to earn the designation of Certified Distressed Property Expert (CDPE) . These sales associates are familiar with the process, the documentation, and the negotiating skills required to successfully complete these difficult transactions in a timely and efficient manner.
“We hope we can provide a public service”, said Smith, “bring some comfort and hope into distressed homeowner’s lives, and hasten the recovery of our real estate markets on the Eastern Shore.”
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