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SHORT SALE or PRE-FORCLOSURE HOME INFORMATION PAGE
HOMEOWNER
We understand that defaulting on your mortgage is a difficult situation. Many people foresee themselves heading into default, or are already in foreclosure. What many people don’t realize is that they have an option before the bank takes away their house. A short sale is an alternative to foreclosure and one that we can offer advice about to you.
Not Sure If You Qualify For A Short Sale? Do You
Owe more on your property than what you could sell it for, especially after real estate commission, closing costs, late payments, interest, etc?
Have difficulty covering your expenses each month?
Not have money in the bank to cover the difference of what you could sell your house for and what you owe the bank?
Are You Having Trouble Making The Payments? Are You
Feeling the stress mounting with each missed payment and phone call from your bank?
Borrowing money from other sources to pay your mortgage?
Getting confused as to what your options are at this point?
Be Proactive And Save Your Credit From Foreclosure
Foreclosure stays on your credit for up to seven years and can make it difficult to obtain another loan. Conducting a short sale minimizes the damage to your credit.
Effective Short Sale Negotiators
Lenders commonly work with short sales we bring them because short sales often save them money. Mortgage servicers can lose a lot more money if your property goes to foreclosure sale. We use our established relationships with the lenders to effectively with them.
Here’s How It Works
We set you up with a Realtor in our nationwide network of preferred short sale Realtors, or use the one you’re currently with, to market your property and receive an offer before your property is sold at foreclosure auction. We help you gather financial information to support your hardship, contact your lenders, and get in touch with the lawyers and mortgage insurance companies involved in your case. We submit the offer(s) on your property, the financial information, and other supporting documents to our contacts inside your mortgage servicer to negotiate the short sale of your property. We coordinate with title companies, attorneys, mortgage insurance companies, public trustees, etc. for the
approval of your short sale.
Foreclosure Sale Date Approaching?
It’s best to allow yourself as much time as possible to short sale your property, but if you’re not sure you have enough time to conduct a short sale, contact us so we can discuss your situation.
Some Common Q & A below for more information
Q Why would my Lender want to allow a Short Sale to help me? A The reason is simple; a short sale often has a better return on investment to the lender than a foreclosure. The average savings a lender sees from a short sale property compared with a foreclosure property is $14,000. Not only does the lender receive this savings, they are also paid on the loan 6 months earlier than in the foreclosure process. This allows them to collect and cash-out earlier than they would in a foreclosure. Plus, lenders spend a great deal of money with attorneys to complete the foreclosure process. Lenders created the short sale process as a foreclosure alternative for those reasons. The incentives to perform a short sale on your property are in place to motivate you to participate.
How successful and experienced is your firm at resolving short sales?
Our combined experience of over 15 years in assisting homeowners in short-selling their properties is what makes us successful. Our success comes from the pride our employees have in their work.
When should I start my Short Sale?
It is best to begin a short sale when you realize you can no longer afford the mortgage, so that your property can be marketed properly and you can receive a high offer. The earlier you start, the higher our likelihood of success. We have negotiated short sales that have already gone to foreclosure sale. Contact Us to see if you have enough time.
What is the cost for you to conduct a short sale?
A consultation to analyze your specific situation is completely FREE. If it is determined that conducting a short sale is right for you, a start-up fee is due at the time you sign up. Please call us toll free today to better understand your current situation and options at (209) 988-9185.
How long does it take for you to complete the case once we fill out the paperwork?
Typical cases are completed within three months. If you have a foreclosure sale date approaching we can complete it sooner. In the past we have found buyers quickly and have used our relationship with the banks to push back your foreclosure sale date.
Does your REALTOR buy my property?
No, we never take ownership of properties. This reduces your liability. There are people/companies who say they will conduct the short sale for you and buy your property. Watch out! This places a lot of potential liability on you. Our business model is to sell your property for as much as possible, which reduces the liability on you. Other people/companies will buy your property at a very low price so they can turn around and sell it for much more- what it is really worth! The banks do not like this and often refuse their short sales and/or ask you to pay back the difference.
I have an Investor who says he can buy my house and negotiate a short sale with my bank- Is this okay?
This is very common tactic used by investors to try to buy houses. Do not be suckered into this! You lose either way! Why do they do this? Because they have nothing to lose, they lowball the lender and if the lender accepts they get a great buy on a house. If it doesn’t go through, then you will likely go to foreclosure and it doesn’t cost them anything. Either way you lose! If it does go through you just increased your potential tax liability (read below) by having the mortgage company take a bigger loss than necessary. Additionally, if it doesn’t go through you wasted valuable time that you could have been using to get a realistic short sale offer through.
How does a foreclosure and a short sale show up on my credit?
Foreclosures show up as FORECLOSURE, and can stay on your record for seven to ten years. Anytime you apply for a new loan or have your credit run, the foreclosure will show up and is usually a required disclosure you must make on most credit and job applications. A short sale is listed as SETTLED DEBT, and is much less harmful to your credit. Please consult a credit company for more information.
What liability do I have when doing a short sale?
In a short sale, it is possible the bank could 1099 you for the difference in what you sell your property for and what you owed. This means the IRS could consider the difference as income, and you could be taxed on that income. The bank might also ask you to pay a portion of the difference back in the form of an unsecured note, which is similar to an I.O.U. It is a negotiation, and we employ tactics to have the bank consider the debt settled. In a foreclosure, your house is sold at an auction, which typically causes the difference of the total amount you owe and the foreclosure sale price to be much greater. This means you have a higher potential tax liability. Additionally, the bank may come after you for a Deficiency Judgment. A successful short sale will eliminate a deficiency judgment, minimize your tax liability, and keep the foreclosure off your credit.
What is a Deficiency Judgment?
A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan. For instance, if you owe $100,000 to the mortgage servicer and they see proceeds after the auction of $55,000, the remaining difference of $45,000 can be moved into a judgment against you. This will also appear on your credit report along with the foreclosure. The lender may be allowed to take further legal action such as garnishing wages to pursue payment based on the laws of your state. Some states have restrictions and regulations on deficiency judgments, but unfortunately the majority does not. Some lenders will choose the deficiency judgment while others may pursue a path to write off the loan. If they choose to write off the loan, the lender may issue a 1099 form which you will have to pay taxes on for the calendar year. For more information on deficiency judgments and the tax liability you may face based on your current situation, submit your information to us for a free consultation.
What advantages are there in using us instead of other firms?
You should go with the company that is most effective at completing short sales. We hire people that have worked in the banks’ short sale departments. They know the “ins and the outs” of the banks and the right questions to ask. We are a nationwide service and have relationships with banks from all over.
Do I need to give you power of attorney?
No, you should never give power of attorney to short sell your property.
What banks do you work with?
We work with almost any bank in the nation.
Cost to You, the Seller or Buyer
Nothing! Any compensation given to REALTOR is recognized by the lender as a marketing fee. Lenders desire, expect and encourage REALTOR participation.
Savings to You
Are you getting what you're entitle to have ... both in quality and value? Your experienced agent knows what you should receive and what "extras" might be available.
You Are Represented
With your real estate agent, YOU are represented! Your agent's experience, knowledge, and reputation represents strength and leverage on your behalf.
Still have questions? Contact our Short Sale Specialist, Bill Holtzclaw @ (209) 988-9185
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An independently owned and operated member of Re/Max International. This is a service mark of Re/Max International. Equal Housing Opportunity. This Website is not intended to be a solicitation for the purchase, sale or lease of real property outside the State of California.
email: bill@billholtzclaw.com
home: www.billholtzclaw.com
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