Lesley Lambert

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.

I live in Westfield, Massachusetts and we are having one HECK of a winter.  Today was yet another snow day, no school, snowed in at home with my daughters.  Days like this give a real estate agent a lot of options, for example:

#1- stay in PJ’s and watch old musicals all day

#2- work from home

#3- clean the house

#4- nap

#5- chat with friends

#6- go outside and play

#7- read

I was in an a la carte mood today and took a few different options.

 

Option #1- I hope this isn’t too much information for you, but I love jammie days!  I didn’t, however, turn on the TV because of

Option #2 – I worked from home, as I often do.  I emailed everyone on my buyer list, I updated my email drip campaigns on my website, I spoke with a buyer (Thanks Clint!), I wrote a press release and I blogged. 

Option #3 – is a work in progress.  I don’t like housechores so I take it in little bites.  Cleaned the kitchen then emailed, folded laundry then blogged…you get the picture.  There is still a pile of laundry the size of the Berkshire Mnts staring at me as I write this, but I will get to it!

Option #4 – don’t feel drowsy today, so I get to stay productive..even in my PJs!

Option # 5 – Enter my new favorite addiction:  twitter.  Today I chatted with friends old and new in business and personal matters.  I am making contacts, broadening my referral network and LEARNING a ton!

Option # 6 – Thank goodness, my girls didn’t feel like going outside, because I am too snug here on the couch!

Option # 7 – I didn’t read my book (although it is terrific: Host by Stephanie Meyers) but I DID read a lot of blogs and motivational materials to keep me focused on staying positive.

My daughters have been cooperating and working beside me all day.  I think it is a great way for them to grow to understand how much effort it takes to be a working mom.  It also teaches them to be flexible and have a good work ethic.  They can see their mom is working, but I can take a break here and there to be with them at lunch or over a book.  Speaking of which…gotta run: the youngest wants help with a puzzle!

 

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?

 

My (twitter) friend @writingroads has launched a wonderful Internet based fundraiser in spirit of love and giving and timed for Valentine’s Day.

She is creating The LOVE ebook to be published and available for Internet download from February 11th-14th.  The book will consist of original photographs, poetry and digitally displayed artwork themed around the concept of love.

 

The book is free, but I encourage you to make a donation of any size, as the proceeds will benefit Dress for Success and Career Gear. 

This is something of a shameless plug, also, as I have submitted an original poem to be included in the book…the first time since high school that I have published my poetry.  She is accepting submissions until January 31st, if you have something to share.

So, whether you go out of curiosity to discover if I can write more than blogs, or you go because you need a good Valentine’s gift, or you go because of generosity of spirit and checkbook: be sure to go to @writingroads website to be involved!