Short selling can be a stressful and demeaning time for anyone who would otherwise be faced by foreclosure. If you are in a short sale negotiation, or are considering a short sale to avoid foreclosure, hold your ground with lenders, brokers and potential investors. Keep in mind that the mortgage crisis grew from compounded, irresponsible prospecting by many lenders and banks. Don’t let the predations of housing professionals leave you out in the cold.
Be wary of prospecting
At the moment, the housing market, especially in the median-range, is susceptible to the terrors of prospecting. The short sale is particularly vulnerable to prospecting. Because the value of a home is determined by the interrelationship of various factors—relative to the houses nearby, the historical prices in that neighborhood, insurance premiums, quality of schools, access to public services and parks—home-value is constructed, somewhat tenuously, in the minds of the buyer, seller, lender and broker.
Prospecting can lead to a situation where brokers and investors collude to undervalue the price of the house, selling it later for a higher price than it was originally valued during the assessment preceding the short sale.
In a prospecting scenario where the property is overvalued, to the benefit of the bank and broker, the new buyer is left with a property worth less than what they paid.
In either situation, everyone loses in the long run because this practices renews volatility in the housing market. The short seller, though freed of the pitfalls of a foreclosure, is left feeling deceived and defrauded by the parties involved in their short sale.
Consider a third-party evaluation
With many houses underwater—a situation where the borrower’s home is worth less than what they owe on their loan—banks are often forced to choose between foreclosing on a home or coming to a mutually beneficial agreement with the borrower. It is important you consult with a number of outside sources that don’t have a direct interest in the short sale of your home. This can be a neighbor, a friend or a family member—many of which, you may discover, are an invaluable source of knowledge and support.
If you suspect insidious prospecting, don’t hesitate to schedule an assessment with a short sale professional.
The IRS has accepted my offer in compromise agreement, what payment option is best for me?
There are three payment options available to those who have settled with the IRS through an offer in compromise: the lump sum cash offer, the short term periodic payment offer, or the deferred periodic payment offer. Depending on your circumstances after you have finally settled with the IRS through an offer in compromise agreement, you will be paying off your new tax liability.