Short Sale Advisory for Homeowners in Bryan College Station

Short Sales in Bryan College Station – What Now?
October 12, 2010
Welcome John Lingsweiler to Century 21 Beal in College Station Tx
October 15, 2010

Short Sale Advisory for Homeowners in Bryan College Station

Foreclosure DefaultWhat is a Short Sale? A Short Sale is the sale of real estate where the price paid is insufficient to pay the loan or loans against the property, plus the costs to sell the property (title policy, title fees, legal fees, real estate sales commissions, etc.), and the seller cannot pay the difference. There are a multitude of issues in a Short Sale, including (but not limited to) legal and financial risks.  This post is not intended to address all the issues. Neither does it purport to be comprehensive, or to provide financial or legal counsel.  However, it is designed to provide information on some of the issues and risks involved in a Short Sale situation.

Before Proceeding with a Short Sale…

–    Discern a Lender’s Options upon Loan Default

–    Determine the various types of loans that secure real property:

  • Purchase money loans
  • Refinanced loans
  • Home-equity loans
  • And many others

The type of the loan and the property has a big influence on what the lender may do if the homeowner defaults on the loan (i.e., fails to make the agreed upon payments).  The homeowner’s overall current and future financial strength, the cost the lender incurs when the loan is acquired, and the current value of the property are also factors in the lender’s decision to foreclose.

Beware of Predatory “rescue” Scams and Short Sale Fraud

If the homeowner is behind on payments and worried about foreclosure, they may be susceptible to people and companies that will try to take advantage of them. “Rescue” scams may cost the homeowner money with no results provided. These scams may result in the loss of the home through foreclosure or even put the homeowner in a potential legal issue of fraud.  For additional information about fraudulent schemes, go to:

“Red Flags” to watch for to avoid a fraudulent scheme include:

  • A Guarantee to Stop the Foreclosure
  • Requirement of payment upfront
  • Instructions to NOT talk with the lender
  • Transfer the title to another entity prior to the sale
  • Buyer wanting to purchase is an LLC
  • Have the Homeowner complete a Power of Attorney
  • New Buyer reserves the right to negotiate a Short Sale for the seller’s benefit

To report suspected scams, contact:

Contact a FREE HUD-Approved Housing Counselor or Your Lender:

Legal and Tax Advice May be Needed

The Consequences of Committing “Waste”:

If you decide to damage the property, remove fixtures like sinks, toilets, cabinets, air conditioners, water heaters, light fixtures…. The lender may accuse you of “waste.” This liability to the lender may make it possible for the lender to sue you for damages. The suit would be for damages because you physically abused, damaged, or destroyed part of the property. Imagine having to deal with a lawsuit in addition to a foreclosure!

Stay tuned for the next 2 posts –

  • Options Other than Short Sale in Texas
  • Short Sale Considerations in Texas

Susan Hilton College Station Real Estate

Susan Hilton

Century 21 Beal, Inc.


  • Short Sale in Bryan Tx
  • Short Sale in College Station Tx
  • Short Sale in Brazos County
  • Foreclosures in Bryan Tx
  • Foreclosures in College Station Tx
  • Foreclosures in Brazos County

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