Tag: short sales

Short Sales and Arm’s Length

Melissa Yardy St. Pete Beach

In the homes sales market of these days, most buyers have an ample opportunity of purchasing exiting home through the purchase of what is referred to as ‘short sale’ property. Short sale describes the situation in which the existing owner is no longer capable of affording the keeping up of the repayments of mortgage or repaying of the loan. At this point, the seller can ask the bank to settle that mortgage at value that is that what the borrower owes.

In 2011, a program to assist the owners of homes that were distressed was launched by the Bank of America. According, to Melissa Yardy, this is one of those great innovations that are very vital in helping the economy in general and the owners of homes in particular. The new program is offering incentives of relocation up to $20,000 to the owners of homes that are in distress.

As a professional in real estate, Melissa Yardy believes that this will go a long way in helping very many families and owners of homes who are capable of demonstrating hardship that can be verified as well as providing the necessary paperwork for ‘unqualifying’ for the mortgage. This is without doubt a very great stride towards mending the American market of real estate.

The subsequent step is for the defaulting customers of Bank of American and it is suggested that they should contact Realtor so that they can get started. It is almost a requirement that a real estate agent that is licensed should do the marketing of this property so that he or she can find a willing buyer within arm’s length transaction. The term arm’s length describes transaction in real estate whereby the purchasers and sellers of parcel of land or property act independently in a way such that they are not in any way related to the other.

The arm’s length transaction idea offers an assurance to the real estate transactions buyers and sellers that they are acting in their best interests and they are not subjected to any form of influence from the outside. In the transactions that are not within arm’s length, there is high likelihood of some other factors which may have influence on the transaction and in some instances to the exchange value as well. This concept is very important because it is very common way that is used in determining the fair value for the market.

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Here’s Your Money…Now Get Out!

Melissa Yardy St. Pete Beach  A Distressed homeowner assistance program rolled out by Bank of America this week is one of the new innovations to help the homeowner and our economy.  The new program offers relocation incentives–up to $20,000 to distressed homeowners who start the short sale process prior to November 30, 2011.  As a real estate professional I believe that this can help thousands of families and  homeowners who can demonstrate a verifiable hardship and provide proper paperwork to “unqualify” for the mortgage.  This is a great stride in mending our real estate market.  The next step is

for Bank of America customers who are in default and suggest they contact a Realtor to get started.  It is almost required that a licensed real estate agent market the property to find a buyer in an “arm’s length

transaction.”

The term “arm’s length” is used to describe a real estate transaction in which the buyers and sellers of property or a parcel of land act independently and are not related to each other. The idea of an arm’s length transaction ensures the buyers and sellers in the real estate transaction are acting in their own self interest and are not subject to any outside influence. In a ‘non-arm’s length transaction their could be other factors that influence the transaction and subsequently the value of the exchange. This concept is important as it is a common way to determine fair market value.

For those that qualify for the program and will give hundreds of homeowners a faur start when starting over.

For more information on short sales, visit http://www.provenshortsales.com/

Read more: http://www.realestatewords.com/arms-length-purchase/#ixzz1aUuIpxxb that the owners use a licensed Realtor to find a buyer in a “arm’s length transaction.”