Short Sales Will Take You Out of a Financial Quagmire
August 5th, 2008 // 10:50 pm @ admin
Kari Shea asked:
Has your home recently gone into pre-foreclosure? Do you need options? The scar that a foreclosure makes on your financial record is huge. Fortunately, there are plans that lessen the impact and help you recover your dignity at the same time. They are called real estate short sales.
Perhaps your adjustable-rate mortgage has ballooned into a Hindenburg hovering over you waiting to explode. Divorce and loss of employment are also common causes of bitter financial situations, routinely resulting in missed mortgage payments and upside-down finances. The recent increase in pre-foreclosure homes in California has sparked the growth of short sales.
There are numerous benefits and advantages involved in real estate short sales. Banks won’t need to go through the arduous and expensive process of proceeding to foreclosure and the seller gets to escape from a perilous financial situation. The documentation collected to reach an agreement between the seller and the lender about the poor financial state of the seller convinces the bank to actually reduce the amount owed on the home loan.
Short sales require patience on the part of the seller. Remember, banks are dealing with a lot of homeowners and the whole process might take some time, possibly several weeks. A good sense of understanding will keep your stress level down while your pre-foreclosure home is being considered for short sales.
An experienced realtor will assist you in the necessary preparations. One key ingredient in this recipe is a willing and able buyer. An agent, working for a smaller commission than usual, will find a suitable candidate for you.
Another good piece of advice to consider while waiting on a pre-foreclosure home to be considered for short sales is to seriously watch your own spending. Don’t rack up more debt on your credit cards with vacations, lavish dinners and luxurious television sets. The lender will see this and won’t be willing to help you out of your dilemma. In short sales, it is instrumental to be completely convincing in your picture of financial hardship.
Short sales can be a complicated path without expert help. A couple of decades ago most of the property in California was owned and mortgaged by people who worked and lived in California. Nowadays most mortgages are controlled by out-of-state companies, making it difficult to contact the appropriate persons. Loan service officers are often told to hold steady on a certain amount and not settle for anything less. Oftentimes false phone numbers are given that make it nearly impossible for anyone less than a professional to get hold of the right people. A skilled realtor will handle these difficulties with no problem at all.
But in the end, short sales work to the greatest advantage possible for you and your pre-foreclosure home. They offer you the best opportunity to escape a terrible situation. All you need do is your homework and find someone with the know-how and willingness to work with you through the labyrinth of real estate short sales. No one is more qualified than a realtor skilled in the processes of short sales.
Has your home recently gone into pre-foreclosure? Do you need options? The scar that a foreclosure makes on your financial record is huge. Fortunately, there are plans that lessen the impact and help you recover your dignity at the same time. They are called real estate short sales.
Perhaps your adjustable-rate mortgage has ballooned into a Hindenburg hovering over you waiting to explode. Divorce and loss of employment are also common causes of bitter financial situations, routinely resulting in missed mortgage payments and upside-down finances. The recent increase in pre-foreclosure homes in California has sparked the growth of short sales.
There are numerous benefits and advantages involved in real estate short sales. Banks won’t need to go through the arduous and expensive process of proceeding to foreclosure and the seller gets to escape from a perilous financial situation. The documentation collected to reach an agreement between the seller and the lender about the poor financial state of the seller convinces the bank to actually reduce the amount owed on the home loan.
Short sales require patience on the part of the seller. Remember, banks are dealing with a lot of homeowners and the whole process might take some time, possibly several weeks. A good sense of understanding will keep your stress level down while your pre-foreclosure home is being considered for short sales.
An experienced realtor will assist you in the necessary preparations. One key ingredient in this recipe is a willing and able buyer. An agent, working for a smaller commission than usual, will find a suitable candidate for you.
Another good piece of advice to consider while waiting on a pre-foreclosure home to be considered for short sales is to seriously watch your own spending. Don’t rack up more debt on your credit cards with vacations, lavish dinners and luxurious television sets. The lender will see this and won’t be willing to help you out of your dilemma. In short sales, it is instrumental to be completely convincing in your picture of financial hardship.
Short sales can be a complicated path without expert help. A couple of decades ago most of the property in California was owned and mortgaged by people who worked and lived in California. Nowadays most mortgages are controlled by out-of-state companies, making it difficult to contact the appropriate persons. Loan service officers are often told to hold steady on a certain amount and not settle for anything less. Oftentimes false phone numbers are given that make it nearly impossible for anyone less than a professional to get hold of the right people. A skilled realtor will handle these difficulties with no problem at all.
But in the end, short sales work to the greatest advantage possible for you and your pre-foreclosure home. They offer you the best opportunity to escape a terrible situation. All you need do is your homework and find someone with the know-how and willingness to work with you through the labyrinth of real estate short sales. No one is more qualified than a realtor skilled in the processes of short sales.
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Category : Short Sale Questions
Short Sales-frequently Asked Questions
February 28th, 2008 // 9:53 am @ admin
Keith Junor asked:
Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None—-In the later part of 2007—Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
Take a look and see if you agree. Click the paragraph below.
Introducing A Complete Course That will
Show You How To Buy Real Estate Nothing
Down, Realize Returns As High As 16% to 50%
With Tax Lien Certificates and Purchase Your
Next Home or Investment Property For 30%
to 40% Below Its True Market Value With
Foreclosure Short Sales.
Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None—-In the later part of 2007—Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
Take a look and see if you agree. Click the paragraph below.
Introducing A Complete Course That will
Show You How To Buy Real Estate Nothing
Down, Realize Returns As High As 16% to 50%
With Tax Lien Certificates and Purchase Your
Next Home or Investment Property For 30%
to 40% Below Its True Market Value With
Foreclosure Short Sales.
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Category : Short Sale Questions