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The current U.S. housing market and financial crisis have caused tremendous stress and heartache for families across America. If you or someone you know is among the millions today affected by the prospect of foreclosure, understand that you are not alone
Unfortunately, too many homeowners facing foreclosure proceed without the assistance or advice of real estate professionals. Now more than ever, you need to find an advocate for you and your family's interests, one who is prepared to handle your specific needs.
Real estate professionals with the Certified Distressed Property Expert (CDPE) Designation have trained extensively to understand the options, solutions, and effective methods for dealing with homeowners facing hardships. Don't risk your financial future and the potential sale of your home with an agent who does not have all the solutions.
As a CDPE, I fully understand that saving a home can save a life, which can save a family, which can save a future.
For more information, Contact me today to discuss your options.
Sean
What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of an experienced CDPE professional.
How Much Will It Cost?
Unlike some companies, there are NO charges to the homeowner. The lender pays all Realtor fees through commissions. I do not earn anything unless we successfully complete your short sale.
What is the difference between short selling and foreclosing?
- A foreclosure will negatively affect on your credit score significantly. Not only will this drastically drop the score, but will prevent the person from obtaining any type of financing for 7-10 years. Even after this period, the mortgage loan application will always state that the borrower had a foreclosure in the past, and can seriously affect that person’s ability to obtain financing and credit in the future.
- A short sale will affect the credit, but not nearly as much as a foreclosure. The credit will be negatively affected for approximately 24 months,. By Fannie Mae Guidelines, one should be able to purchase another home after 24 months of having done a short sale.
- With a foreclosure, a public notice is filed and privacy is not maintained. Our short sale process ensures that the seller will maintain their privacy. We do not require any signs on the property.
- With a foreclosure, a lender can assign a judgment against the homeowner and garnish remaining assets such as bank accounts, income, etc. With a short sale, we pressure the lender to let you walk away free and clear without any deficiency judgment actions taken.
Are there any tax consequences?
- In 2007, The Debt Relief Forgiveness Act and Debt Cancellation was passed. This allows homeowners to short sell their homes up to 1 million dollars with no tax consequences. Be sure to consult your tax professional for more information. You can also visit the IRS website at www.irs.gov.
Can I short sale if I missed or am behind on my payments?*
- Yes. You can even short sell a property if you are in default.
Can I short sale if I already received a foreclosure notice?*
- Yes. In most cases, the lender will stop the foreclosure process in order to complete the short sale. This is because a short sale usually saves the lender a siginficant amount of money in comparison to a foreclosure. However, the lender must be contacted immediately to delay any further action and negotiate a short sale.
Can I short sale if I have been denied for a modification?*
Can I short sale if I am in the process for a modification?*
Have a question about a home or want to talk about selling yours? Or, if you have any other questions or comments, then feel free to e-mail or call using any of the information below. You will get a response as quickly as possible.
* Listing your home does not guarantee sale/price approval. Sale price and all conditions will be set and approved by the lending institution/s involved.
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