Real Estate News from Westfield, MA

What’s the difference between Short Sale vs Short Payoff?

In our current real estate environment, here in Western Massachusetts, it is crucial that buyers and sellers fully understand the difference between a “Short Sale” and a “Short Payoff”.

A Short Sale is where the lender or investor agrees to accept an amount less than actual owed on the property. The Criteria for a Short Sale are that the borrower demonstrates a verifiable long term hardship.

A Short Payoff is when the lender agrees to release the lien (their interest) on the property and allow the property to be “conveyed” to a new owner. The lender agrees to accept less than the amount owed on the property to release the lien however they extend a certain amount of “credit” to the borrower in the form of an unsecured line of credit or promissory note.

The Criteria for a Short Payoff – The mortgage is current, the borrower has great credit, the borrower had and can demonstrate the ability to pay off the debt. When would you request a Short Payoff? – You would request a short payoff when the home has lost value dramatically and you do not have the ability to pay the large amount to get completely out of the property. Note – Not all lenders will allow for a Short Payoff, however you will never know if you never ask. Advantages of a Short Pay-Off:

• You are able to move out of the property and get on with your life.

• You SHOULD receive no negative feedback on your credit.

• You may obtain a lower interest rate on the loan. Sometimes 1-2%. If for some crazy reason your ability to pay changes and your client are not able to pay on the note, the credit ramifications are significantly smaller.

For more information on short sales, including who to contact and every states legal information, read my    FREE E-book on my website. 

Are you a homeowner in the Westfield, MA or Western Massachusetts area who owns a home that is worth less than you owe, but need to or want to make a move?  I am here to help!  Call Lesley Lambert, The Real Estate Natural at Park Square Realty at 413-575-3611.

For years I was a waitress and the first thing I would greet people with was "Hi, what can I get for you?".  Those words while heard often in food service are not heard very often in other businesses.

I, for one, like real estate because of my ability to help people.  My knowledge, skills and experience can get a new family into their first home, can save an individual from foreclosure or just make a typical move a bit less stressful.  Having the ability to step into people's lives in such an intimate way is a unique benefit to my real estate career. 

When working with a customer or client, I am absorbed into their daily life.  We speak often, email each other and spend time together on appointments.  However, I don't know that I ever stopped to ask any of them that simple question: "How Can I Help You?" 

I didn't have a New Year's Resolution, because nothing seemed important enough to commit to right at that moment.  Today, while listening to Tamara Dorris on Jason Crouch and Ken Cook's blog talk radio program it hit me:  Service. So, as of today :

I RESOLVE THAT I WILL ANNOUNCE THAT I AM HERE TO SERVE.  HOW CAN I HELP YOU TODAY?

I want my family, friends, clients and customers to know without a doubt that I like to help people.  I want them to see the happiness it gives me when I am able to solve a problem, answer a question or assist with a real estate transaction.  It can be as simple as answering a friend's question about a real estate abbreviation or as complicated as working out a loan modification for a family in pre-foreclosure.  It is all important and I like it all equally.

So, now that I have asked the question, what is your response?   Reply here or find me on twitter @LesleyLambert

Lesley Lambert, The Real Estate Natural At Park Square Realty, Westfield, MA, How Can I Help You?