What is a “Short Sale” and Why is it Important to Know? Leading Realtor Ben Fiedler of RE/MAX of Cherry Creek Provides Insight DENVER – Right now, one-third of all home sales are “Short Sales” or bank-owned properties, and it’s very common, according to Ben Fiedler, a leading Realtor and co-owner of RE/MAX of Cherry Creek. A Short Sale is when the bank accepts less than what is owed by the seller. The bank also pays for the real estate commissions and closing costs for the seller. Because of a recent announcement from Fannie Mae, the largest company that sets the rules for mortgages, Short Sales can be better for sellers than foreclosure. “This is a big change for people who cannot make their mortgage payments because they’ve lost their income, are experiencing divorce, or facing health issues,” said Fiedler. “Now, Fannie Mae is rewarding people for working with their bank and doing a Short Sale.” According to Fannie Mae, people who complete Short Sales can get a new mortgage in just two years, versus four years if they let the property go to foreclosure. So why the change from Fannie Mae! “They see that people who can’t make their mortgage payments are in a very, very tough situation,” said Fiedler. “They are rewarding a property owner for working with their bank.” In addition, some sellers are eligible for up to a $3,000 payment from their bank to pay for moving from their existing home to another. Because there are detailed rules and regulations, choosing the right Realtor to assist with a short sale is the most important decision. “We’re experienced with the Short Sale process, and therefore make it simple for the seller,” Fiedler continued. “We understand this is a very difficult time. We succeed at Short Sales where other agents fail because we get it.” Fiedler has been trained in completing Short Sales by the Distressed Property Institute and earned its Certified Distressed Property Expert (CDPE) designation. For instance, sellers who have FHA mortgages can have their Short Sale pre-approved. This means that before the home is put into the Multiple Listing Service and a sign placed in the yard, sellers know what the bank will accept in advance. When this type of Short Sale is completed, the seller owes the bank nothing and their real estate commissions and closing costs are paid for. “Reach out to a knowledgeable real estate agent when you’re having trouble making payments,” said Fiedler. “We can sit down with a seller and quickly understand what they’re facing, and show them the options available to them now. We will also team with other agents who don’t feel confident in completing a Short Sale, so that they and their clients will succeed.” For more information, contact Fiedler at 303-399-6999 or via email at ben@wonderfuldenver.com.