• An Agreement between lender and Borrower
  • Lender Accept less amount owed Via sale of a property to a non related third party
  • This occurs when borrowers face a hardship
  • Hardship occurs when the payments are not made or borrower is behind payments
  • A short sale agreement may be an alternative for distressed homeowners

Why would a lender agree to accept less than what is owed?

  • Lenders are not in the business of owning and managing properties
  • A short sale gives the lender the ability to cut its losses upfront and avoid a potentially greater loss through the expense and time of a foreclosure.

Do I qualify for a short sale?

  • To qualify for a short sale, you must be able to prove to your lender(s) that you are a victim of a "HARDSHIP".
  • "Hardship" is when you are unable to continue to make payments. Or if you fall under this circumstances ……
  • Have you experienced an unforeseen hardship since you obtained financing for your property?
  • Do you owe more on your property than the amount your home could sell for in the marketplace today?
  • Do you have significant difficulty in making your monthly mortgage payment?

What are some examples of "hardship"?

  • Reduction in Income.
  • Divorce or Separation
  • Health issues or medical bills
  • Job Loss or reduction of income
  • Death of spouse or wage earner
  • Adjustment in Mortgage payments
  • Employment relocation
  • Failure of Business

Typically, how long does a short sale take?

  • How quickly an offer is generated and accepted by the seller
  • How quickly the lender responds to the offer (dependent on the quantity of other short sales the lender is processing)
  • How many lien holders need to provide approval

Note :- General estimate is 2-4 months

When should I begin the short sale process?

  • Time is of the essence
  • The best time to begin the short sale process is before you miss your first payment to allow more time for lender approval.
  • There is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings.
  • If a Notice of Default has been filed or a Trustee Sale has been set, contact us as soon as possible.

Do I have to move out of my home?

• If your lender(s) approves a short sale, you do not need to vacate your home until it closes escrow.

How will a short sale affect my credit?

  • We are not credit experts.
  • Short Sale Doesn’t affect credit .Late Payment does.
  • The impact will varies on a credit report in a short sale and foreclosure situation.Foreclosure will have more serious affects on your credit.
  • Some mortgage and credit experts suggest that a foreclosure may impact a credit score up to 250 point
  • While a short sale may result in a rs.eduction of 100 points or less.
  • Short Sale stay on credit for 2 Years.
  • California is a non deficiency State.
  • Lenders cannot come back after you once short sale is approved

How will my Credit be restored ?

  • Credit Can be restored right after close of Short Sale.
  • Usually it takes 12 to 24 months to get back on track on credit .
  • California lending guidelines stopping to purchase a house is for 3 yrs.

Note :- you can buy a car but not a home.

How much Short sale will Cost you ?

  • It will cost you nothing on Short Sale.
  • We will try to qualify you under H.A.F.A government program that can get you cash back once the short sale is done.

What are the tax ramifications of a short sale?

  • December 2007 the Mortgage Forgiveness Debt Relief Act was signed into law by President Bush.
  • Eliminates potential tax liability associated with a short sale depending on the specifics of your particular situation.
  • A taxpayer may or may not face tax consequences, again depending on individual circumstances

Why shouldn’t a seller negotiate with a lender directly?

  • Most Loss Mitigation Departments are understaffed and overloaded with countless cases.
  • Unfortunately, loss mitigators can be very difficult to reach and when you finally do make contact, you have very little time with which to make your appeal.
  • The stress of the situation makes it difficult for a homeowner to effectively negotiate their way out of foreclosure. ……
  • We as a professional works as a neutral third-party short sale negotiator.
  • It is an advantage when speaking with lenders because we seek the best outcome for all parties involved.
  • My job as an Real estate professional and lenders receive complete satisfaction throughout the short sale process.

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