If you find yourself in a position where you owe more than your home is worth and you need to sell, a short sale may be your best option. But don’t get taken for a long, stressful ride by a self proclaimed ‘expert’…
What is a Short Sale?
Simply put, a short sale is a real estate transaction where the homeowner owes their lender more than what their property is worth and they need to sell. In a short sale, the lender must approve and accept less than what they are owed as full payoff (this means they may settle for $400,000, even if you currently owe them $500,000…even if the loss is hundreds of thousands of dollars).
Are you facing a financial hardship that you know will decrease your income?
Are you getting behind on your mortgage and you’re not sure if you can catch up?
Or do you just need to sell quickly but your home is worth less now than when you bought it?
If you are facing any of the situations above, and you think a short sale might be your best option, then read on. If you’re still not sure and just want more info, then scroll to the bottom of this page and request a free copy of our article “The 9 Alternatives When Facing Foreclosure”
Don’t Worry. It’s Not Your Fault
We’ve all had our ups and downs in life and a lot of other good people are also in the same tough spot as you. Life seems scary when you’re facing the reality of foreclosure and I know how you feel when you just don’t want to answer the phone any more…
We all agree that we’re in the middle of a national mortgage crisis and that, in many cases, homeowners who have bought or refinanced in the last few years have been seriously abused by unethical lending practices!!
You bought your home and hoped (like we all did) that it would increase in value (and some folks were even promised it would!), but most likely the harsh reality is that now your home is worth less than when you bought it and the value is still declining sharply.
I’ve helped many homeowners in this position to get the help they deserve.
It’s Sad But True!
DON’T ALLOW THIS TO HAPPEN TO YOU
I hate to say this about my fellow agents, but the majority of them that are “trying to help” have not been properly trained and sadly, they are misinformed as to how to even negotiate with lenders. Some even get so far as to submit your ‘short sale packet’ and then just sit back and wait for a response! In the end, they simply don’t know how to help you and you will become one of those “90%” that were not helped.
Short Sales Are Not Easy
…unless you seek the help of an expert agent with a proven track record. We have successfully negotiated short sales for many families and we actually get the banks to say YES to our short sales. Before you agree to have an agent help you sell your home, ask him/her to show you just one short sale approval within the last 6 months… I doubt they can.
Now It’s Up To You
I am ready, along with my team of experts, to go to battle for you. Are you ready to take a serious look at your options and see how a short sale can help you:
- Avoid paying TAXES on the money the bank loses at foreclosure! (Yes, you may have to pay taxes on the amount of loss to the bank if the home goes to foreclosure!)
- Save your credit from the “Foreclosure” ding
- Avoid Bankruptcy
- Avoid Foreclosure
- Relieve the stress that this financial burden has become
- WITH NO OUT OF POCKET FEES OR ANY UP FRONT COSTS OF ANY KIND! …or in other words, you pay me nothing and if I do my job and save you from foreclosure, only then will I get paid by the lender!
You may be facing foreclosure… so what are your options?!? Try to look at the situation more from a financial standpoint rather than an emotional standpoint. This way you can more successfully analyze which option might best suit your needs and desires to move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence. Take time to think through your situation and make a decision. Then, take action right away so you have enough time to complete the solution you choice.
9 Options When Facing ForeClosure
1. Do Nothing
If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
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.
Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.n.
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.
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.
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.
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.