UNDERSTANDING THE SHORT SALE PROCESS
Our Short Sale Assistance Program is available to qualifying homeowners at any stage of the foreclosure process. In most cases however, it is better to be proactive and attempt the sale during the earlier stages of the foreclosure action. The reason is simply because as the foreclosure process progresses, the loss to the lender increases. Therefore, early intervention allows the cooperating financial institution to realize a significantly reduced loss. If I Am In Bankruptcy, Can I Qualify? Even if you are in bankruptcy, you may still be eligible for the assistance. Often time homeowners don't realize that in some cases the financial institution will end up foreclosing on your property even though a bankruptcy has been filed. When this is the case, you not only denigrate your credit standing with the bankruptcy, but also denigrate it further by having the combined bankruptcy/foreclosure type reporting. Damage Control If you are thinking about bankruptcy, it's worth your time to consider all the options available to you before making a decision. Once you have filed bankruptcy there is no turning back. On the other hand, our Short Sale Assistance Program allows you to effectively implement damage control. Many homeowners realize after filing bankruptcy that it might not have been the best choice.
Why is Vision Real Estate the Best Choice to Handle Your Short Sale Transaction?
There are many advantages to having our trained and experienced Short Sale Services Team represent you.
Here are a few:
1.
Lender Acceptance Success Rate. If your hardship documentation or financial analysis forms are done incorrectly, you could waste months of valuable time only to be denied assistance under a short sale. Once your bank makes that determination, turning it around can be nearly impossible. Get the best representation you possibly can! All facets of gathering financial documentation, qualifying your hardship, the selling and closing of your property and negotiating with the bank, are all handled by our Short Sale Services Team. You are not left to flounder or negotiate with the bank on your own.
2.
"Stigma-Proof" Your House Listing. You should be aware from the start that there is a stigma attached to short sales. From a buyer's agent point of view, it is wise to avoid short sales for two reasons: a)
Most listing agents are not experienced and a high percentage never closes. This not only means loss of commission, but no future referrals from satisfied buyers!
b)
If they close, it takes 90 to 120 days of calming the nerves of the frustrated clients only to get their commission cut in the end. If you know any real estate agents, ask them how they like selling short sales!
3.
Legal and Tax Help. We are in a position to get your legal and tax questions addressed through a number of professionals in our network. WE ARE NOT CPA'S OR ATTORNEYS AND ARE NOT QUALIFIED TO GIVE LEGAL OR TAX ADVICE!
4.
We do not charge for our services or consultations and at no time will we ask you for any compensation.
What is a Short Sale? As you are presently aware, the real estate industry in the United States is suffering from a declining industry. The first problem is that a great many individuals have been unemployed or as we term it, "under-employed", basically taking positions that do not generate the income they once had. The second major problem is the declining value of housing, which we believe is indicative of "over supply" and poor economic conditions. A home that once sold for $400,000 is now selling for $300,000. Most homeowners who need to sell their home today do not have the required funds to offset this difference. A short sale allows you to sell this property for $300,000 without any out-ofpocket expense for the shortfall or other costs associated with selling the property (brokerage, title and escrow, etc.). If you qualify for the short sale assistance program, your financial institution may agree to absorb the loss without any contribution from you, either now, or in the future. Why Was This Assistance Started? In today's unsettled economic climate, many financial institutions are facing an increasing number of delinquencies among homeowners, creating an unprecedented number of foreclosures. The banking industry's belief is that many of these costly foreclosure actions could be avoided (to the benefit of the homeowner as well as the banking industry) by an increased awareness and usage of foreclosure prevention alternatives such as the "Short Sale Assistance" program. How Does it Benefit Financial Institutions by Offering Short Sales? Consider the costs associated with the foreclosure process (Attorney fee's, property preservation costs, delinquent payments, the eviction process, re-possession of the property, selling the property once foreclosure, etc.). Most foreclosures result in losses for everyone involved - the homeowner, the financial institution, the investor, and the mortgage insurance company. By providing an alternative to foreclosure, the short sale programs benefit both the bank and the homeowner. Homeowners experiencing hardship can be spared the painful ordeal of foreclosure. Banks save money each time a short sale is completed because of the reduced costs involved when compared to the costly foreclosure process.
What Can A Short Sale Do For You? Preserve Credit Standing Allow You To Sell Your Home With No Out-Of-Pocket Expense Eliminate Negative Cash Flow May Reduce Tax Liability Avoid Potential Foreclosure Release of Mortgage Obligation Avoid Possible Bankruptcy Relieves Financial/Emotional Stress Allow You To Purchase Another Home In The Near Future
A short sale is becoming a more complicated process than ever. Negotiating short sales is technical, time consuming and requires extensive experience.
Sounds Great, But Can I Qualify For A "Short Sale"?
Do Any of the Following Apply to You? Divorce Filed Bankruptcy Death in the Family Delinquent on Mortgage Payments Increasing Credit Card Debt Robbing Peter to Pay Paul and now Peter's Pockets are Empty Loss of Employment or Drop in Income Assumed Liability Due to Someone Else's Action Life-Style Change Job Relocation - Transfer Early or Forced Retirement
If not, don't be discouraged! These are just a few examples that may qualify you for a Short Sale.
Know All Your Options!
1.
Rent it Out. Being a landlord isn't always as much fun as it looks like, especially if you live out of the area. Most people find they have to put $400 to $600 a month into the property to make up the shortfall on the rent vs. the mortgage, water, sewer, garbage and possible management fees. This doesn't take into consideration maintenance and repair costs or worse case - eviction and legal costs, rehabilitation of the property and long vacancies
2.
Let Someone Assume the Loan. This is a good option if similar homes are selling for approximately the same as your loan balance. As soon as a buyer does some comparison-shopping and finds they can buy the same home for substantially less, the lust of the "no-down deal" is gone! Keep in mind that the loan has to be current and there is approximately $2,000 to $2,500 in closing cost expenses for a seller (Buyers pay their own closing costs and lender fees). Not to mention, most lenders do not allow for an assumption of a loan anymore.
3.
Let It Go To Foreclosure. The problem with this solution is obvious. Foreclosure notations stay on a credit report for 7 - 10 years and affect your ability to get credit of all kinds (Auto, personal loans, future mortgages, etc.). It may also affect future job applications or promotions.
4.
Apply For A "Forbearance Plan/Repayment Schedule". This will allow someone who is delinquent to catch up over time. If were in a financial crunch that was temporary, and is now behind you, most lenders will work with you to catch up on payments.
Example: 3 months payments are missed due to injury on the job. The lender may accept a payment and a half each month for six months to allow you to catch up.
5.
Modification Of Loan Terms. If you have a higher-than-market-rate loan AND can prove to the lender that you cannot afford the monthly payment (with full income and outgo verification) but, with a reduction in interest to today's current rate you could afford it, you may be a candidate for a "modification". It is a fine line to walk proving that you absolutely cannot afford the higher rate but would be able to afford it at today's rate. Good luck!
6.
Do A Short Sale. We help get your financial documentation in order and handle all facets of negotiation with your bank. A short sale allows you to exercise damage control and help preserve your credit. We handle all of the real estate listing, selling, escrow, etc. Also, the best part is that the bank pays all our fees! One of the conditions of approval on your short sale is that the bank pays commissions, title insurance, escrow fees, termite work, etc.
I Have Fallen Behind On My Payments Or In Default, Is It Too Late?
FORECLOSURE TIME TABLE
Deliquent Started
-0- Days
Notice of Default
90 Days
Notice of Sale Posted
115 Days
Notice of Sale
21 Days
Default: The failure of a borrower to make a mortgage payment when due or to fulfill other terms of a loan agreement. Delinquency: A loan in which a payment is at least one month overdue, but which has not yet been declared by the lender to be in default. Deficiency Judgment: A personal judgment created by court decree for the difference between the amount of the mortgage indebtedness and any lesser amount recovered from the foreclosure sale. The judgment is against any person who is liable for the mortgage debt. Due-On-Sale Clause: A clause in a conventional mortgage that allows the lender to demand full payment of the outstanding balance when the property is sold. This is generally triggered when an unauthorized transfer of title takes place. Forbearance: The act of postponing legal action when a mortgage is in arrears. Special Forbearance: A relief provision that permits a period of reduced or suspended payments, followed by another period of larger than normal payments, to enable the homeowner to cure a delinquency. Foreclosure: A legal procedure permitting a creditor to take possession of and sell property that is mortgaged as security for a defaulted loan. Short Sale Assistance: A procedure in which the borrower is allowed to sell his or her property for an amount less than what is owed in order to avoid foreclosure and preserve their credit rating.
Bottom Line‌ We Can Get Your Short Sale Approved!!!