Transcription
The Short Sale Process
The Short Sale Process What is a Short Sale?Who Qualifies For a Short Sale?What Will Be Required of You?What To Expect in the Process?What are the Benefits of a Short Sale?Why Work With Real Estate Innovations &Solutions, LLC? Answers to Frequently Asked QuestionsReal Estate Innovations & Solutions, LLCThis document contains information that may not be reproduced or disclosed, in whole or in part, without express written permission from Real Estate Innovations and Solutions, LLC
What is a Short Sale?A Short Sale is when your mortgagelender(s) and/or lien holder(s) agreeto take less than is owed soyou can sell your home. Your home may be over-leveraged or “underwater”You may behind on payments and unable to sell for a high enough price tocover what you owe plus other fees required to closeLenders created short sales as a foreclosure alternativeLenders would rather allow you to short sale versus foreclosingForeclosing on properties costs lenders moneyReal Estate Innovations & Solutions, LLC
Who Qualifies? And How?Most people facing foreclosure or a financial hardship who cannotsell their home for what is owed will qualify.To qualify you must simply: Be experiencing a financial hardship Be in default on your mortgage Have NO equity in your home Have NO available assetsReal Estate Innovations & Solutions, LLC
What Will Be Required of You?R.E.I.S. and Your Lender Will Require the Following: Handwritten Hardship LetterExplain your situation, when it started, how ithappened and what you are doing to fix it A Financial Worksheet - Your BudgetEverything that costs you money on a monthly basis 2 Years Most Recent Tax ReturnsWith WW-2s and all schedules 2 Months Recent Bank StatementsAll bank accounts 2 Most Recent Pay-StubsOr, if unemployed, provide a statementReal Estate Innovations & Solutions, LLC
What Will Be Required of You?R.E.I.S. and Your Lender Will Require the Following: An Authorization to Release Informationregarding your loan Copy of recent mortgage statement(s) Copy of any correspondence received regardingthe property from attorneys, lien holder(s),bankruptcy trustee or probate. Any paperwork regarding any other liens and/orjudgments. Property tax records Home Owner Association InformationReal Estate Innovations & Solutions, LLC
What Will Be Required of You?The Short Sale Process Will Be More Successful If You: Allow showings Keep the home in show condition Stay in communication Cooperate with marketing efforts If vacant: leave utilities on if possibleReal Estate Innovations & Solutions, LLC
What to Expect in the Process?Patience and communication are the keys tosuccess. The process could take 3 - 4 monthsor longer to complete.1.2.3.4.5.A Short Sale Package Submitted to LenderBank Orders Appraisal of the PropertyHome is Placed on the MLSOffer to Purchase is ReceivedBank Negotiation/Acceptance of PurchaseOffer6.Property is SoldReal Estate Innovations & Solutions, LLC
What are the Benefits of a Short Sale? NO Foreclosure listed on Credit Report NO repairs necessary – Sell AS-IS NO taxable event (Foreclosure Tax Relief BillDecember 2007) NO bringing property taxes current NO deficiency judgment (lender acceptance) NO need to file bankruptcy on home No real estate commission owed GET out from underneath mortgage debt Home ownership possible in 2 years vs 7yearswith foreclosureReal Estate Innovations & Solutions, LLC
Why Work with R.E.I.S.? We are Short Sale Experts We are Committed to solving propertychallenges We Educate and Assist homeowners eachstep of the process We Work Hard To save homeowners fromforeclosure Additional costs Paid by R.E.I.S All decisions made in Best Interest ofhomeownersReal Estate Innovations & Solutions, LLC
Short Sale FAQ’sWill I get any money when the property sells?For the majority of loan types you are not allowed by your lenderlender toreceive any proceeds from the sale of your home. If you have an FHAloan, you may qualify for their prepre-foreclosure sale program that mayallow you to receive an incentive.How much does doing a short sale cost?It doesn’doesn’t cost you anything!!! You don’don’t pay anything to R.E.I.S. –EVER!!! R.E.I.S. is paid on the difference between what your lenderlenderaccepts as payment and what the buyer pays for the property.Which is better on my credit – a Foreclosure or a ShortSale?Please consult your own financial advisor or the credit bureausdirectly for the answer to this question. From experience only, wecan say that foreclosure is much more damaging to your credit. Ashort sale will most commonly be listed as “settled debt”debt” and is muchless harmful to your credit.Real Estate Innovations & Solutions, LLC
Short Sale FAQ’sWill I be liable for the lender’s loss?Depending on the situation you may or may not receive a deficiencydeficiencyjudgment or taxable event.Taxable Events:There have been changes in the law that reduce homeowner taxliability. Visithttp://www.irs.gov/individuals/article/0,,id 179414,00.htmlMost tax consequences have been done away with for primary loanson primary residences.Deficiencies:R.E.I.S. will request a full release of lien during negotiations andask the lender to consider the debt settled or satisfied, howeverhowever thelender has the right to ask you to sign an unsecured note or to askthat money be contributed at the time of closing.It is best to consult an attorney for advice regarding any debt liability.Real Estate Innovations & Solutions, LLC
Short Sale FAQ’sWhat about the federal governmentbailout programs?To determine eligibility:www.financialstability.govWhat if I file for bankruptcy?Filing bankruptcy does not stop the foreclosureprocess, it just delays it. The property willeventually be discharged from bankruptcyprotection and be back in the foreclosureprocess where it was when bankruptcy wasfiled.For further bankruptcy information, you shouldseek the advice of legal counsel.Real Estate Innovations & Solutions, LLC
Contact R.E.I.S.Short Sale Specialists815.299.7347 Cell608.513.2030 Cell888.958.4111 mReal Estate Innovations & Solutions, LLC
What is a Short Sale? Your home may be over-leveraged or "underwater" You may behind on payments and unable to sell for a high enough price to cover what you owe plus other fees required to close Lenders created short sales as a foreclosure alternative Lenders would rather allow you to short sale versus foreclosing
