What is a short sale? A short sale is when the lender agrees to accept less money than the amount owed on a property.
Are you upside down on your mortgage or behind in payments because:
1. Of an unexpected hardship - Job loss, change in income, divorce, death, increased debt, family emergencies, etc.
2. Mortgage financing - did you get into an ARM and/or payment adjustment, deferred interest program (option ARM), 100% financing, or another type of mortage that has all of a sudden increased and no longer is affordable.
3. Market conditions - Values are decreasing or no equity.
It’s not too late to save your credit and allow us to negotiate a short sale on your behalf. Remember…if you do nothing and allow your home to be foreclosed on the lender can serve you with a deficiency judgment and garnish your wages for 22% and it will remain on your credit report from 7 to 10 years! Do I Qualify? If you are insolvent and we can prove that your debts out weigh your assets chances are you will qualify for a short sale. Yes, even if your house is worth less than it is worth. Primary residences and second homes can be sold via short sale but one must prove they are insolvent and we will council you every step of the way, all at no cost out of pocket to you. Do I have to be behind in my payments to qualify? No. We have helped lots of buyers negotiate a short sale even though they never missed a payment. How will this effect my credit? Your credit will suffer a little because of the late payments, most sellers can repair this over the next 12 to 24 months, now let's talk about the alternatives: Bancruptcy will stay on your credit report for 10 years meaning you will most likely have to pay a higher interest on everything you need to apply for credi ton in the next 10 years. A foreclosure will stay on your record for a minimum of 7 years and have the same effects as bancruptcy with higher interest and the lender can also garnish your wages and seize your assets. So the lender forgives my debt? Yes in most cases with an experienced cerified short sale agent handling your sale, you will end up owing NOTHING no matter how low of an offer the lender accepts. What are my options? 1. Always call your lender and see if they will work out a new loan with you...they do NOT want your house back. 2. There are programs available such as HOPE which is a HUD program. 3. Deed IN Lieu Of Foreclosure which means you give the bank back your deed and they take the house. This usually will only happen if you have sufficinet equity in your home, becasue remember the lender needs to cover the expenses tos ell your home now, and if you are not beghind in payments. 4. Consult your attorney and ask if a short sale might be the best way to go. 5. Let the house be foreclosed on and give the lender the right to sue you for the shortage and garnish your wages. 6. File bancruptcy which forgives the old debt BUT not usually anything going forward, so chances are you could be in this same foreclosure situation in 6 months and have a bancruptcy on your record. What will a short sale cost me? If you work with a certified short sale expert that is a licensed real estate agent there shoudl be no cost to you out of pocket. The lender usually pays for your attorney, closing costs, our commissions, etc. How much money will I end up with? NOTHING! The lender is usually forgiving tens of thousands of dollars so they will not give the seller any money or allow the agents to what so ever. If an agent is offering you a give back, beware this is most likely illegal. If I get served a notice to appear in court...what should I do?Council with your agent and attorney. It all depends on how far along you are in the process. Warnings DO NOT deed your property to a third party without absolute confirmation your loan has been paid off! Should you believe this option is best for you, please consult with YOUR attorney – before completing the transaction. If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, or move into the property and leave you with the financial respobsiblilty What happens if the new owner might not do is make mortgage payments? That could become a big problem for you. Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation. If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be devastating. Do Not sell your home at a huge discount. Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them. Protect your equity. Do Not authorize a prospective buyer to deal directly with your lender. The buyer has one goal, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff. The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later. If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real certified professional. It costs you nothing – the lender pays the fees. Remember our services cost you nothing. Everyone wins. They do not want to take your property through foreclosure. That’s why they will negotiate with an experienced agent to get the deal done. |