As Millions Struggle with Home Values Dropping Below what they Owe, Important Consumer Protection Tips Released

Ron Burhans, Member of Top 5 in Real Estate Network®, Outlines What Homeowners Need to Ask and Learn About “Short Sales” and Other Options

Today, as millions of homeowners struggle with what to do when the value of their property becomes less than the mortgage they owe—particularly those recently unemployed or unable to make their monthly payments—there is a growing need for clear, unbiased consumer protection information on these vital topics.

Meeting this need head-on, Ron Burhans of Ron Burhans And Associates on Hilton Head Island joined with others in the Top 5 in Real Estate Network® to release “The Four R’s of Short Sales…and More: The Transparent Approach to a Real Estate-Related Crisis.” This very timely resource provides a 360 degree view of the current issues facing so many homeowners and offers insights to help consumers best work with their lenders and attorneys to address their own unique circumstances. 

This new publication urges concerned homeowners “to meticulously evaluate all of their options before making a decision; especially a decision that may have both short- and long-range consequences.”

One financial arrangement that has become increasingly common in the marketplace – the “short sale” – is an agreement by a lender (or lenders) to accept the sale of a property in which there is a shortage of funds necessary to pay off the outstanding loan balance along with a number of the lender-stipulated criteria being met. “We recommend that homeowners consider all options when seeking a resolution to mortgage-related financial challenges. The short sale is just one possible outcome that homeowners should evaluate when facing a distressed mortgage situation,” said Allan Dalton, President, Top 5 in Real Estate Network.

It is vital for homeowners to not only seek the advice of a trusted pre-foreclosure professional, but to also be wary of “Preforeclosure Predators,” according to Burhans. At all costs, homeowners must ensure that they are not exploited or manipulated during this most vulnerable period of homeownership. Regrettably, the burgeoning short sale marketplace is attracting hordes of unscrupulous individuals who are seizing any and all opportunities to prey upon beleaguered and unsuspecting homeowners who are not aware of the range of options available to them when experiencing the growing challenge of “upside-down homeownership.”

“It is imperative that any homeowner seeking to determine if a short sale is in their best interest, be able to distinguish between their own interests and the interests of lenders, buyers, investors, and real estate-related professionals, and how these different interests may influence their decision,” said Burhans. “We have compiled a series of questions that will serve as an important precursor for homeowners to consider and discuss with their attorneys prior to their pre-foreclosure decision.