11/29/09: Coming Up Short – The Realities of Selling Your Property for Less than You Owe

With so many properties with mortgages that exceed the current value, many owners are feeling trapped.  When loan modification fails and you can’t afford to pay the mortgage, before you toss in the towel and allow the lender to foreclose, consider a short sale.  No, this isn’t a garage sale of your used underwear to raise money for the mortgage.  It’s the process of working with the lender to get them to release you from the loan when you bring in a new buyer who pays less than you owe.

In studio to brief you on short selling:

  • Your host, Robert Helms
  • Co-Host and Financial Strategist, Russell Gray
  • The “Godfather of Real Estate”, Bob Helms

The Guys kick off the show with a discussion of what a short sale is and why a property owner would bother.  Why not just throw the keys at the lender and walk?  And what about the lender?  Why would the lender accept a loan payoff for less than the full amount due?  This show builds upon a March 22, 2009 show (available to Backstage Pass Members in the Archives) which covered the opportunities for investors in buying short sales.

Moving on from the motivations of the various parties, the Guys delve into the actual process of a short sale.  Is this something you can or should do yourself, or does it make sense to get professionals involved?  If so, which professionals are needed and what questions should you be asking?  While short sales are nothing new, Bob pointed out that it’s been decades since they were a significant portion of the market.  Who do you need on your team and how important is experience when seeking professional help?

The Guys also touched on the concept of “deficiency” and the possible tax consequences of a short sale for both homeowners and investors.  The show concluded with a discussion of what to watch out for in today’s economic climate.  Whether you are someone in need of getting out of a property that’s underwater, or if you’re an investor looking to pick up a bargain by providing a borrower and his lender an alternative to foreclosure, this show will give you some food for thought!

Listen to this Broadcast Now

Subscribe to the Free Podcast


Be the first to know when new content arrives!

Explore The Archives

Metal Ask Change
Gold $2034.18 $-1.41
Silver $22.62 $-0.03
Platinum $901.28 $12.18
Palladium $982.45 $-9.06
Gold to Silver 89.93 to 1
Gold to Platinum 2.26 to 1
Gold to Palladium 2.07 to 1

The Real Estate Guys™ Guests and Contributors Have Been Featured On:

Scroll to Top
Scroll to Top