Before You Begin a Short Sale………Talk to an attorney– Discuss your need for a short sale and ask the attorney about any and all potential legal ramifications. Have them provide you with information on any potential effects.
Talk to a CPA— Ask your CPA if there will be any Tax implications. Prior to the Mortgage Relief Act (which may or may not be renewed in Congress) the deficiency on the Short Sale may have been considered income and taxable.
Talk to a Lender— While you may be so effected by the downturn of the housing situation and your own financial situation that renting is a wonderful option for you now, short sales, foreclosures and deeds in lieu will effect you if you want to get back into the Housing market by having a wait period. Your credit may be effected as well. Being proactive and having a lender to possibly be at your side through the wait period and helping you get back on your feet for a future purchase will help you prepare proactively.
Short Sale Experience That Counts
As an Agent who has worked on Short Sales for 10 years, I’ve experienced many different issues both with lenders and Client situations. The most difficult part of a short sale- for any agent- is knowing how to proactively manage the process with all parties. Short Sales are worked within several layers in the bank and analyzed under many different bank and federal loan requirements.
Not only have I worked Short Sales as both a Seller and Buyer’s agent but I also hold an Arizona LO license which allows me to 3rd party negotiate with any agent at any brokerage. The greatest benefit this provides my clients is the ability for me to tap into a huge amount of lenders and gain a great database of knowledge on their procedures. AND THE SERVICES ARE PAID FOR BY THE LENDER NOT YOU.
Getting results in a Short Sale demands experience and understanding of the entire process. Contact me at any time to discuss your need.
- Reduced income (furloughs, new job, partner's loss of job, pay cut)
- Illness or medical emergency
- Job transfer (voluntary or involuntary)
- Divorce, separation or marital difficulties
- Exotic mortgage terms (an adjustable-rate loan)
- Military service
- Death in the family
- Involuntary increased expenses and excessive debt
- Bank of America
- Wells Fargo
- US Bank
- SunWest Mortgage
- Desert Schools
Every short sale is evaluated on the Hardship that the Seller is experiencing. A Hardship generally falls under the following categories:
While in some cases, a short sale can be reviewed for approval prior to an offer, most Lenders will require a signed Purchase contract and completed Lender forms to begin the application. Lenders may review the file under different conditions if based on whether the loan is current or past due.
Lenders generally have specific guidelines to follow when a Seller applies for a Short Sale. Some are government required while others are Investor required. An Investor is who actually owns your loan. The Lender’s role is to make sure 1) All the documents required to properly review a short sale for an approval is received and completed as required. Anytime that documents are submitted, they are evaluated on completeness. Any delays or an incomplete package can add more time to the review. Typically, a Short Sale package can be over 100 pages of documents if all documents are submitted in their entirety.Read more link text
Over the past 10 years, Short Sales have become increasingly complicated. Successful results come from a combination of strong marketing, in depth knowledge of Your Lender and the Owner of your loan (Investor) and most importantly hard negotiations. I've worked with most of the Lenders in the industry and have achieved a high level of success not only to obtain an approval BUT also a Waiver of Deficiency. Here are the some Lenders I've worked with over the years:
Is your Financial situation causing you to think about a Short Sale? Let's Talk. Contact Me.
"IMPORTANT NOTICE: UNITED BROKERS GROUP IS NOT ASSOCIATED WITH THE GOVERNMENT, AND OUR COMPLIMENTARY SHORT-SALE NEGOTIATION, IF NEEDED, IS NOT APPROVED BY THE GOVERNMENT OR YOUR LENDER. EVEN IF YOU ACCEPT THIS OFFER AND USE OUR COMPLIMENTARY SERVICE, YOUR LENDER MAY NOT AGREE TO CHANGE YOUR LOAN. IF YOU STOP MAKING PAYMENTS ON YOUR MORTGAGE, YOU COULD LOSE YOUR HOME AND DAMAGE YOUR CREDIT RATING."Read more link text
Needing a Short Sale is no longer an uncommon situation and definitely not one that is whispered about in today’s housing market. In fact, from the period of 2008 through 2012; the average housing market contained about 40% - 60% short sale or foreclosed homes. That’s A LOT of home owners who couldn’t afford the monthly mortgage AND a lot of homes that lost tons of VALUE. The upside down homeowner IS faced with deciding among a few options:Read more link text