Short Sales

If you Owe More than your House is Worth,
you are NOT Alone! 

Thousands of homeowners are facing foreclosure every day because they cannot keep up with their mortgage payments or cannot sell their homes at a price that will pay back the loan and the costs associated with the sale.

If this is your situation, let us help you avoid foreclosure and the punishing impact it will have on your present and future credit rating.

I have put together a list of commonly asked questions and their answers pertaining to Short Sales, several of which came from my own clients.  I hope this information is helpful to you.

WHAT IS A SHORT SALE?

Let me start off by clarifying that a short sale is NOT the same thing as a foreclosure.  In fact, a short sale is the method used by home owners to derail the foreclosure process.
When the sale of property produces less proceeds than the total pay off for all loans, liens and other costs associated with the sale, the sale is considered to have fallen "short".  Short to whom?  Short to the bank(s) and any lien holders who have a monetary claim against the property.  

WHY SHOULD I DO A SHORT SALE?

If you are unable to pay your mortgage now or foresee that you will be unable to pay the mortgage in the near future, a short sale may be the only pro-active option you can take to try to avoid foreclosure.

***Waiting it out and doing nothing ensures a foreclosure and this is the worst possible option***

AT WHAT POINT SHOULD I CONTACT AN AGENT AND LIST MY HOUSE FOR SALE?

* If your mortgage is already overwhelming you
* If you are expecting it to re-set soon at a higher interest rate than you can afford
* If you have received a Notice of Default
If you answered yes to any of the above, contact us NOW!!  Act FAST!  A successful short sale depends on you giving us the time needed to complete each of the many and lengthy steps of the short sale process.

WHAT ARE THE BENEFITS OF DOING A SHORT SALE?

* Avoid having a foreclosure on your record.
* Avoid being sued by your lender for losses after foreclosure.
* Actually stay in your house longer!
* Stop the stress you are under now.  Pass on the stress of dealing with banks and debt collectors to us.
* Walk away free and clear from your house without any debt attached to it and without paying a dime!
*There is no cost to do a short sale. You will never be asked to pay anything!  Beware of any agent or company who tells you otherwise.  There will be NO Real Estate fees or closing costs, the bank(s) and buyers pay for it all.

WHY WOULD THE BANK ACCEPT A SHORT SALE?

Time is Money. Foreclosure action is expensive and lengthy. During the foreclosure process, the property is a non-producing possession that is declining in value every day. If the property becomes vacant and/or vandalized, it will cost the bank even more.

Even after a home has been foreclosed, the bank must still hire an asset management company who will then hire a local Real Estate Broker to list and sell the property.

WHAT IF MY HOME’S ALREADY IN THE FORECLOSURE PROCESS?  IS IT TOO LATE?

Even if you’ve stopped making payments or received a Notice of Default or Notice of Sale, the foreclosure sale will usually be suspended during the short sale process.

HOW WILL A SHORT SALE AFFECT MY CREDIT?

Banks have the option of submitting the short sale to the credit bureau as “Paid in Full” or “Settled for Less Than Full Balance.” As far as your credit score is concerned, there is no evidence to support that a short sale will lower your credit score. Some have the idea that this is like a bankruptcy or a foreclosure. That is not true! In a short sale the lender is simply allowing you to pay less than you owe.

DO I HAVE TO PUT MY HOUSE ON THE MARKET TO DO A SHORT SALE?

Yes, the banks want to see that the house is for sale and we need an actual offer from a qualified buyer that we can package and present to the bank in order to negotiate the short sale with the banks.

HOW LONG IS THE SHORT SALE PROCESS?

The Bank's short sale process is by no means short. Generally, it takes 3-9 months to close a transaction AFTER an offer and short sale package has submitted to the bank.
During this time we may even need to bring the house back on the market and accept offers from new buyers if the first buyer falls out (which I have personally seen quite often in this market.)

WHAT IF I HAVE A NOTICE OF DEFAULT?

We can help you with a successful short sale if you already have an NOD. However, you must contact us IMMEDIATELY because time is very short and there is much work to do.

WHAT IF I ALREADY HAVE A NOTICE OF SALE?

We may be able postpone the Trustee Sale Date and complete a successful short sale if there if we can get an offer on the property. However, if the Trustee Sale date is 5 days or less and there is no offer on the property, it is unlikely that there is anything we can do. Contact me IMMEDIATELY so we can give you the best information.

WHAT WE NEED FROM YOU?

Most importantly, we need your assistance. We understand that the last thing you want to do is sell your house, but if foreclosure is the only other option, then selling it is truly better.  We are on your team and here to help you get out of the house without financial recourse.  If you have received any notices from the bank(s), HOA’s or other lien holders, those would prove very helpful to start negotiations with them.

The bank(s) will also need:
* A copy of your mortgage statements or coupons
* HOA information if you have a home owners association
* A copy of your bank statements (savings and checking) for the last two months
* A copy of your last two months paystubs or a profit and loss statement if you are self employed or evidence of unemployment or other sources of income
* Your last two years tax returns

WHY CHOOSE AUSTIN & HIS TEAM?

We have done several short sale and bank owned transactions and negotiate with numerous banks all day long, every day.  We understand what the banks are looking for and how to talk to and structure a short sale package.  This gives us the best chance of getting an approval from the bank and getting you out of your current mortgage without a foreclosure and an opportunity to start fresh.

Because we have done so many of these types of transactions, the banks now generally recognize my packaging and already come to expect that it will be complete and ready for approval.

Sure, you could let any real estate agent try to help you but the last thing you want to do is hire a real estate agent who’s unfamiliar with this type of sale to negotiate with the banks for you.  The process is much too long and the amount of paperwork and follow up is overwhelming for most real estate agents in the business today to try and do this for you.

Without myself and my talented team of people with vast experience in negotiating with the banks, there is a much greater chance that your property would go to foreclosure and severely damage your credit.  Our short sale process can stop all of that and it won't cost you a dime.

 

HAVE ANY OTHER SHORT SALE QUESTIONS?

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