Short Sale

WHAT IS A SHORT SALE ?

An Agreement between lender and Borrower
Lender Accept less amount owed Via sale of a property to a non related third party
This occurs when borrowers face a hardship
Hardship occurs when the payments are not made or borrower is behind payments
A short sale agreement may be an alternative for distressed homeowners

Why would a lender agree to accept less than what is owed?

Lenders are not in the business of owning and managing properties
A short sale gives the lender the ability to cut its losses upfront and avoid a potentially greater loss through the expense and time of a foreclosure.

Do I qualify for a short sale?

To qualify for a short sale, you must be able to prove to your lender(s) that you are a victim of a "HARDSHIP".
"Hardship" is when you are unable to continue to make payments. Or if you fall under this circumstances ……
Have you experienced an unforeseen hardship since you obtained financing for your property?
Do you owe more on your property than the amount your home could sell for in the marketplace today?
Do you have significant difficulty in making your monthly mortgage payment?

What are some examples of "hardship"?

Typically, how long does a short sale take?

How quickly an offer is generated and accepted by the seller
How quickly the lender responds to the offer (dependent on the quantity of other short sales the lender is processing)
How many lien holders need to provide approval

Note :- General estimate is 2-4 months

When should I begin the short sale process?

Time is of the essence
The best time to begin the short sale process is before you miss your first payment to allow more time for lender approval.
There is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings.
If a Notice of Default has been filed or a Trustee Sale has been set, contact us as soon as possible.

Do I have to move out of my home?

• If your lender(s) approves a short sale, you do not need to vacate your home until it closes escrow.

How will a short sale affect my credit?

We are not credit experts.
Short Sale Doesn’t affect credit .Late Payment does.
The impact will varies on a credit report in a short sale and foreclosure situation.Foreclosure will have more serious affects on your credit.
Some mortgage and credit experts suggest that a foreclosure may impact a credit score up to 250 point
While a short sale may result in a rs.eduction of 100 points or less.
Short Sale stay on credit for 2 Years.
California is a non deficiency State.
Lenders cannot come back after you once short sale is approved

How will my Credit be restored ?

Note :- you can buy a car but not a home.

How much Short sale will Cost you ?

It will cost you nothing on Short Sale.
We will try to qualify you under H.A.F.A government program that can get you cash back once the short sale is done.

What are the tax ramifications of a short sale?

December 2007 the Mortgage Forgiveness Debt Relief Act was signed into law by President Bush.
Eliminates potential tax liability associated with a short sale depending on the specifics of your particular situation.
A taxpayer may or may not face tax consequences, again depending on individual circumstances

Why shouldn’t a seller negotiate with a lender directly?

Most Loss Mitigation Departments are understaffed and overloaded with countless cases.
Unfortunately, loss mitigators can be very difficult to reach and when you finally do make contact, you have very little time with which to make your appeal.
The stress of the situation makes it difficult for a homeowner to effectively negotiate their way out of foreclosure. ……
We as a professional works as a neutral third-party short sale negotiator.
It is an advantage when speaking with lenders because we seek the best outcome for all parties involved.
My job as an Real estate professional and lenders receive complete satisfaction throughout the short sale process.