Warning:

Do not pay up-front fees!

Loan Modification and Short Sale Companies are not authorized to charge up-front fees without an advanced fee agreement approved by the BRE.

 

SDHS does not

charge up-front fees.

 

Loan Modification fee is charged after modification is completed to the client’s approval.

Short Sale fee is paid for by the lender or buyer.

Short Sale

Summary:

For those who can’t or do not want to keep the property and want to avoid foreclosure:

  1. Short Sale is when lender agrees to accept less than full loan balance to sell property
  2. Anyone with a ‘qualifying hardship’ can likely be helped by a short sale
  3. Hardship = loan adjusting up, loss of income, medical, divorce, death, departure
  4. Credit Score: Short Sale less damaging than foreclosure (generally 100 vs. 200 drop)
  5. Allows for earlier market re-entry 2 years vs. 4 years for BK and 5 years for foreclosure.
  6. The government likes short sales!  Federal tax code and lending criteria benefit the short seller
  7. A short sale is a win-win-win for all parties involved!

 

To Qualify:

 

  1. Property Type: Residential, Investment, Multi-Family, Commercial and Land
    1. Property can be either a personal residence or investment property
    2. Commercial Property and Multi-Family units can be ‘short sold’ too
    3. Unfinished construction, Lots and Improved / Unimproved land is eligible
  1. Who benefits the most? ‘Refi money’, over 100k 2nd’s and 700K plus loans.
    1. California is a ‘no-deficiency’ state for ‘purchase money’ residences only therefore anyone who ‘refinanced’ and has a second loan (heloc or conventional) the lender can collect on their loss on that loan after a foreclosure sale.
    2. Lenders sell the collectable deficiency to collection agencies or sue in court.
    3. Since loans above conforming limit (600-700k) are not recognized in government modification programs the home owner’s best solution is a short sale.
  1. Watch out for:
    1. Short Sale agents & companies that are not experienced and would costing you $ from a poor settlement negotiation or unnecessary long processing time.
    2. Those that don’t understand lender charge off rules and how that affects negotiation
    3. Those that ask you to sign your title over to them thus giving up control of property.
    4. Those that charge up front fees for their services.

 

Cost:

- No cost to homeowner

- Homes are sold in ‘as is’ condition, with no repair credits paid by seller.

- Lender pays for real estate commissions, past taxes, and certain other items.

- All parties sign document acknowledging lender will reduce loan balances to cover costs and fees.

 

 

Contact Us Now

 

 

Details:

 

Short Sale:  A short sale is a negotiated settlement with the lender(s) that result in a written agreement giving: a release of the lien so the property can be sold, breakdown of costs, and stating how the outstanding balance will be handled.

 

Qualifying hardship:  Any hardship that common sense would indicate a seller is likely to default on the loan and the property would be sold at trustee sale in the future.  These include loan payment adjusting up, reduction in household income, job loss, job transfer out of area, unforeseen expenses, illness or death of a party to the loan and many other reasons.  Basically, if you can show your total expenses exceed your net income then you qualify.

 

Assets:  You do not need to have zero assets to qualify for a short sale!  We have regularly had short sales approved when the seller has assets including retirement accounts, savings and other real estate holdings.

 

Benefits of a short sale: 

 

  • Foreclosure Avoidance
  • Tax relief:  Mortgage Tax Debt Relief Act of 2008 has been extended to 2012 to ‘relived’ sellers of short sale properties to be able to ‘write off’ any lender cancellation of debt 1099-C on qualifying residences.
  • New home quicker: Under 2008 revised Fannie Mae and Freddie Mac underwriting guidelines (rules for new home loans) a borrower does not qualify for a new loan for 5 years from the time of foreclosure, 4 years from the time of a discharge of a bankruptcy but only 2 years from the completion of a short sale.
  • FICO Score damage:  Just like the tax policy and new loan guidelines favor the short sale and punish the foreclosure the foreclosure causes a bigger hit to credit score. How much your credit score drops depends on your previous credit history, how many payments you will miss and other ‘proprietary’ guidelines that Fair Isaac/FICO predictive analytics comes up with.

 

 

Free Evaluation:

Find out if you are eligible for a short sale by filling out the following form.

We will contact you with a written recommendation based on your particular circumstances.

There is no obligation and the consultation is free.

The more information you can include the more detailed the recommendation we can provide.

Evaluation Specialists are standing by.

 

Contact Information
First name:  
Last name:  
Email:  
Phone:   -  -
Best time to contact you:  
How did you find us?  
Property Information
Property Ownership Primary Residence     Investment
Address:  
City:  
State:  
Zip Code:  
Lender # 1  
Loan Balance #1  
Loan Type #1  
Adjustment Date #1  
Refi/Purchase Money #1  
Lender #2  
Loan Balance #2  
Loan Type #2  
Adjustment Date #2  
Refi/Purchase Money #2  
Estimated Current Home Value  
Other Real Estate Owned  
Household Monthly Income  
Financial Hardship  
Other Information
What are you interested in?
Loan Mod    Legal    Short Sale    Foreclosure

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Free Evaluation:

Find out if you are eligible for a short sale by filling out this form.

We will contact you with a written recommendation based on your particular circumstances.

There is no obligation and the consultation is free.

The more information you can include, the more detailed the recommendation we can provide.

Evaluation Specialists are standing by.

 

Contact Us Now

 

Warning:

There are many inexperienced people representing unsuspecting sellers on short sales as well as a few scammers out there so watch out!

As mentioned before please watch out for short sale agents & companies that are not experienced and would costing you $ from a poor settlement negotiation or unnecessary long processing time.  Those that don’t understand lender charge off rules and how that affects negotiation.  Those that ask you to sign your title over to them or by signing a power of attorney and thus giving up control of transaction and property. Finally, watch out for those that charge up front fees for their services.  Most of the time the agent/negotiation company can get the lender or the buyer to pay for the negotiation services but occasionally the seller does have to pick this cost up but only after the transaction has been approved by the bank, agreed to by the seller and payment is completed concurrent with escrow closing.

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What Is A Short Sale?



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