Avoiding Foreclosure with a Short Sale

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Are you searching for another way out?

It will take you less than 10 minutes to look over this material, but it could be exactly what you need to set you on the right path.


Who do I call? The Real Estate market today is challenging. Finding a buyer for any home takes a lot of work. Unfortunately that is only half of the battle with Short Sales. You need an agent who knows how to work with the mortgage companies to get the deal closed. A lot of agents are called ’specialists.’ They have a string of letters after their names, and nice titles. I have a few myself. But the truth is that many of these designations are awarded after a 1 day class or seminar. There may not even be an exam, and most require no prior experience. But experience is the key. This is probably the first time you have faced a Short Sale, it should not be the first time your agent has faced one as well. You need to know that an agent has closed short sales. Not just listed, not just tried, but closed. The following pages are some of the real life, local short sales that I have successfully closed.


Benefits to the Seller Foreclosure

vs

Ineligible for a Fannie-Mae ( 7 years for investors)

Short Sale Eligible for a Fannie-Mae backed mtg after as little as 2 years ( also 2 years for investors)

Credit score likely to drop by 250 points or more, lasting 3 years or longer

Short Sales can drop scores by as little as 50 points, as briefly as 12-18 months

Foreclosures are permanent public record, and on a credit history for 10 years

No public record, credit reports may say ‘settled’ or even ‘paid’

Lender has the right to a deficiency judgment even after they take the property!

Lender may give up the right to a deficiency judgment in exchange for a promissory note or just your cooperation


Listed 9/22/07

Here is an actual example in Middleburg. I listed the home in 2007. We obtained an offer of $150,000. The scenario on the left shows you what the numbers would have been if we had completed the Short Sale. Instead, the home went into foreclosure. Now look at the numbers on the right. The bank let the house go for $30,000 less than we could have sold it for and is entitled to double the amount of money in a deficiency judgment. Short Sale Scenario Payoff at time of offer $196,627

Actual Foreclosure Bank Awarded Judgment of $235,117

Obtained an offer of $150,000

Would have netted $134,998 Deficiency/Forgiven Debt $61,629 Would have closed 11/15/2007

Bank sold for $119,000

Bank netted $108,000 Deficiency $127,117

Closed 11/10/2009

In addition to the difference in the numbers窶馬otice that the foreclosure process drug out for 2 years. Instead of having a fresh foreclosure on their credit, this seller could have been able to buy a home again today.


Lis pendens filed 6/9/2009



t n e m t s e v n I l a t n e R


Middleburg Shor t Sale Closed 10/31/2011 Mor tgage Holder: C ha Bought for Sold For Forgiven Debt Lis Pendens w as

se

$180,000 $108,000 +$70,000 filed 1/6/2011

& Bank even ga ve seller $750 a t closing to help move


Orange Park—Oakl eaf Shor t Sale Closed 9/22/2010 Mor tgage Holder: Central Mor tgage Bought for Sold For Forgiven Debt

$223,600 $182,250 +$40,000



Lis Pendens filed 7/22/2009


Give me a call. I would be happy to meet with you to discuss your unique situation and answer your questions.

Marcia VanBoskerck REALTOR速

www.ShortSales.pro Certified Foreclosure Specialist Million Dollar Club E-Business Agent

Watson Realty Corp. 2239 Blanding Boulevard Middleburg, FL 32068

(904) 237-2670


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