Can't make the Payments?
Owe More than the value
of your home
Loan Modification going
Have you been notified of default and are facing a ticking clock to foreclosure?
MY No Cost or Fee Short Sale May Be Your Solution! In fact I have been successful getting my sellers $3,000 even $5,000 to move and months to remain in your house rent and mortgage free.
|If so, know that you are not alone! Thousands of homeowners in Southern California are facing the same challenges as you. You need help, expert guidance, and someone who understands the difficult choices you are facing about your home and your family. As an Orange County short sale realtor we provide homeowners FREE information and assistance with avoiding foreclosure, explaining the effects it can have on you and your family, and offering other options that may be available to you.
Learn About Short Sales & How They Can Help Avoid Foreclosure Read this and learn about short sales and how they might help you stop or avoid foreclosure
Tell me...What is a Short Sale?
First of all - unlike its name...it ISN'T short. It can and probably will take several months 3-5 is the current average. The 'short' refers to the fact that when there isn't enough equity or ANY equity in a home sellers can ask the existing lender(s) to accept an amount "Short" or less than the amount owed to allow the property to be sold. Almost always -a lender would rather accept a settlement today with a Short Sale than proceed to a foreclosure. Why? Lenders accept short sale pay-off nearly the full value of the property and if they foreclose...which can take months and legal fees, they are then on the hook for all the same expenses they have agreed to pay for the short sale but now need to carry the home for many months if not years in a declining market. Even when the lender finally has the freedom to sell a foreclosed property, they must pay nearly all of the same fees and expenses they would have incurred on the short sale but the property may be worth less.
What will the lender pay?
While everything is a negotiation and therefore the banks choice, it is my experience that some of the fees and expenses are always acceptable by the lenders to be paid and others are negotiated. Lenders accept commissions, escrow, title fees, back property taxes, HOA transfer charges , disclosure reports required by contract, notary and courier services, prorated HOA and Tax charges through the escrow periods and in most cases negotiations for an amount to satisfy other liens and encumbrances like attorney fees, second third and fourth trust deeds, Home Equity Lines of Credit (HELOC) arrearages on Homeowners fees, termite charges,
The END RESULT - your loan shows as "paid" with a zero balance on your credit and you avoid foreclosure.
So again why would a lender accept a Short Sale over just foreclosing?
As we talked about, lenders don't want to be homeowners or landlords or property managers and the money they have tied up in foreclosed properties cannot be loaned to other investments but just sits idle (or loses money) tied up in foreclosed property. Ultimately, they will need to sell the property and after all the time and expense of the foreclosure, they will still have the added expense of a declining market where the property may be worth less and the carrying costs of owning the house until it sells and closes escrow - they are on the hook for the taxes, association fees, insurance, utilities and so much more.
Is a Short Sale right for me?
Review your options and then decide - Can you afford to stay in your home making the payments on the mortgage and all the other expenses you have? Consider if a comparable home can be rented for less than you pay now and remember renting will not have the added costs of taxes, HOA fees, maintenance, insurances etc . etc. In MOST cases - you can rent a home for FAR LESS than what it will cost you to stay in the property. Even if the economy recovers quickly and the markets start to see value increases, your home's value may take 4, 6 even 10 years before you have equity again. Can you carry that expense and burden for YEARS just to get even? Do you want to?
If you are faced with economic hardship, ill health, excessive debt or just tired of the struggle to stay afloat a Short Sale may be your answer. Let me help you personalize this decision with a NO OBLIGATION analysis of your situation and you can then make an informed decision if this might be right for you.
What is a financial hardship?
Nearly ANYTHING that makes it hard for you to maintain your previous lifestyle - Divorce or separation, illness for you or a family member, loss or reduction of wages, job transfer, changes to your payment from adjustable mortgages, mortgages that are DUE and cannot be refinances from a loss of equity, elder care. There are so many that the hardships are as unique as the homeowners themselves...but here is an important fact. I have NEVER had a homeowner turned down on a short sale -NEVER! Bank Want to make every effort to help you sell your home and turn their negative assets around. When we discuss your situation, I can help you discover the exact causes for your financial distress and convey those to the lender with the confidence of experience that you will be approved as a hardship.
I am current on my mortgage, will my lender consider a Short Sale?
In some cases this is called a strategic default - you can make the payments but for your reasons you are choosing to sell. Lenders know that property has declined and California has hundreds of thousands of properties that are over encumbered but the homeowners are still paying the mortgages. The short answer is - probably but the circumstances matter. I can sit with you and give you a fairly good appraisal of your chances but every lender is different. I have worked with Indy Mac, DeutchBank, B of A, Wachovia, Chase, Wells Fargo, Greentree, WAMU, Countrywide, Schools First, and so many more and I know their protocols so let's sit and see what your situation is to determine that. That is the best way to see if your lender will accept a file for approval on a loan that is current.
How much would it cost me to sell my home in a Short Sale?
Nothing! Nada, Zilch Zero - In fact, I have gotten lenders to allow the seller thousands of dollars to help them move. The lenders take on the responsibility to pay all of the fees and in the rare case there is a shortage we ask the buyers to pay for the few charges the lender may balk at.
If I have two loans, can I still do a Short Sale?
Yes. As I said often there are several loans and I will negotiate on your behalf with everyone holding a lien on your property.
What about my credit? Won't a Short Sale ruin my credit?
Short sales don't ruin credit. Not paying the mortgage, having attorney's file collections for homeowners associations, lenders filing for defaults are all factors that affect your credit BUT - a short sale will begin you on the road to recovery and is viewed differently than a foreclosure. Talk to me about your circumstances and let's see what your individual story is to determine what your best choice may be.
My property needs a lot of repair work. Can I still do a Short Sale?
Yes - It is a fair assumption that homeowners in financial distress don't have the money to make repairs to their home. In fact lenders may have to make some of those repairs themselves if they do foreclose. Buyers may see sweat equity available and lenders see a future headache they can avoid by allowing the short sale.
Do I have to deal with the bank throughout the Short Sale process?
Once you sign a listing agreement with me, I take on the burden of communications with your lenders and collection agents. In some cases the lenders will cease all direct communication with you since I have the authority to act on your behalf so...NO MORE PHONE CALLS from lenders demanding payments.
Will my short sale negatively affect my neighborhood home values?
A successful Orange County Short Sale will result in a higher sales price and net proceeds available for your lender thereby supporting higher neighborhood values.
Can I simply deed my property to someone else and avoid foreclosure that way?
Now here is a slippery slope. BE CAREFUL. It can lead to legal situations and will not relieve you of the debt - just the rights to the house. A loan is in your name and secured to the house… separating you from your house doesn't stop the obligation to pay...it only muddies the water.
What are the tax considerations of a short sale?
On December 20, 2007 President Bush Signed H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. The law applies to primary residences only and takes effect from January 1, 2007 through December 31, 2012. It provides relief to home owners by shielding them from the additional burden of potential federal income tax on any amount written off or forgiven by their lender in case of foreclosure or short sale. Followed on the heels of the federal debt relief the state government also enacted legislation for the same purposes but please consult with an experienced tax professional to see how the law applies in your circumstance. It is strongly advised.
Can any agent do a short sale?
Like so many professions, there are trained and experienced specialists. Although Realtors all have the same license it is unwise to ask just anyone to handle your short sale. Consider the negotiations, time commitments and administration alone. I have a full time team dedicated completely to my clients only just for this purpose. If you interview other Realtors, ask for a list of sellers AND buyers they have completed short sales for in the past 6 months. In fact, I recommend you ask me for the list of questions you should ask ANY Realtor before you hire them. This is a profession and requires a professional. A license does not make you a professional nor does it make you experienced or knowledgeable in these unique markets. Believe me, this is NOT the time to allow your nephew or cousin to get experience in real estate by selling your house...You want and need a PRO!
How can I get started on a Short Sale?
The simplest question you have - just call me today!
If you want to speak to me NOW call 949 212-1147 OR for a response in 3-12 hours Robyn@RobynSeymour.com