     WHAT IS A SHORT SALE? * A Short Sale simply put is when a lender allows a Seller to sell their property for below what they owe on their loan. Let's say you owe $300,000.00 to Chase Home Loans. Your home is worth $200,000.00 due to the lower turn in the market. The $100,000.00 difference is considered "The Short!" * The Short Sale process can also help you avoid Foreclosure if you are starting to fall behind on your payments. You can also do a Short Sale if you are current on your payments as well. During market price reductions, you do have a right to sell your home at a lower price than what you owe. * Please understand that there is no guarantee that a Short Sale will stop the bank from foreclosure. It is another tool to help you out of a bad situation if you can find a buyer and if the bank helps out during the process. Please read on for additional information! *How does this process work for me-The Seller? 1) You need a Realtor that has knowledge and experience on how to set up, and operate a Short Sale. This means contacting your lender directly, putting together a "Short Sale Packet" which includes detailed Financial Statements, Taxes, Bank Records, Pay stubs and more so that your lender will approve your Short Sale. This process also starts with creating the ideal marketing situation for your property, getting everything ready prior to bank approval. This also means that I am there for you EVERY STEP OF THE WAY! I do not want to make things worse for you as the seller. It is my job to get you out of a negative situation. Please call me for more information or a FREE personal meeting to discuss your situation. 12-20-2007: Congress and The President of The United States have passed and signed into law: The Mortgage Forgiveness Debt Relief Act of 2007! Click below to see the law and what it means for short sales and foreclosures: http://www.govtrack.us/congress/bill.xpd?bill=h110-3648 The Mortgage Forgiveness Debt Act of 2007 has been extended until 2012! 2) Short sales can work if you are current on your payments or if you are behind. Please keep in mind that when a NOTICE OF DEFAULT has been filed and you receive a copy of that notice, TIME IS NOT ON YOUR SIDE!!! In this market, even a Short Sale can take a long time. This depends on the approval time from your lender and also how marketable your home is to a new buyer. This means the current condition and market value price of your home will also be a key factor in attracting a buyer. 3) Please keep in mind that this page is only a basic understanding of a Short Sale and the process. Contact me anytime for additional information so that I can assist you in any way! Here is a link regarding Short Sales and Tax Issues/Questions from the IRS website: http://www.irs.gov/individuals/article/0,,id=179414,00.html Concerned about Legal Matters regarding Short Sales and other Legal Questions- Do you need Legal Advice? Contact a Professional: 
Tell Rebecca Michael Bondi sent me! *** I have a 99% closing rate on my Short Sales! Find out why I can close them! Contact me today! *How does this process work for me-The Buyer? 1) As a Buyers Representative, it is my job during a Short Sale to assist you in getting a great deal usually below value and getting the most out of the lender such as having them pay your closing costs and or other related expenses. 2) A Short Sale sometimes can get you a great deal or just an OK deal! It is my job to find you a deal and make you happy with your purchase! This is due to doing research on properties and the surrounding areas. This type of transaction can last weeks or several months and you should be able to handle the length of the transaction. Remember, we are dealing with Banks after all! 3) If you can hold onto a Short Sale home for at least 2 years, you may be able to have plenty of equity to sell at a later time. Remember, we are NOT IN A "FLIPING MARKET!" Do not look to make fast money out there, this will set you up for disaster! Planning is everything! ***Please contact me if you have further questions or a scenario you wish to discuss with me. You as the Seller and as the Buyer do not pay me anything for a Short Sale! The bank pays me when I sell your home! I also put this in writing! *Some terms and conditions apply. The Bank/Lender(s) will make the final decision during this process. So, your house is in foreclosure… now what?!? Try to look at the situation without attaching your emotions. If viewing the situation from a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and desires and move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence, so sit and take serious thought of your situation and take quick action in order to allow yourself enough time to complete the chosen process. Nine options when facing Foreclosure: 1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at a foreclosure auction or what in Nevada is called a Trustee Sale. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option and I would not suggest you do this! 2. Payoff/Refinance/Loan Modification – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home. Federal Laws are changing on a daily basis, in some cases, Loan Modification may help you. You should contact your lender and ask them for assistance with your situation. 3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees. 4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment. 5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements. 6. Partial Claim – A loan from the lender for a 2nd loan to include back payments, costs and fees. 7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened. 8. Bankruptcy – This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney. --Chapter 7 (Liquidation) To completely settle personal debt. --Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years. --Chapter 11 (Business Reorganization) A business debt solution. 9. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value. |