Short Sales

Short Sale

short sale

A short sale occurs when a homeowner owes more on their property than the property is actually worth, but the bank agrees to accept less than what is owed as payment in full. In order to avoid the foreclosure process, the bank is willing to take a lesser payoff.  Premier Short sale angels are Texas short sale consultants who are committed to providing you all the options and explain all the government policies and conditions that are available to sellers who are unable to sell their house to do economic conditions.

Facing foreclosure? Foresee the possibility of foreclose in the near future? Avoid drastic credit damage. Avoid being in the Harvey Report. Our angels have alternatives to make it less detrimental.

If you are a homeowner who has found yourself unable to pay your mortgage payment, we are able to provide you with options.  If you or someone you know is facing foreclosure or foresee the possibility of foreclosure in the near future, there are many options to help avoid and prevent it.  There are many reasons why you may be unable to make your payment.  We understand and do not judge because it’s happening to the whole country.

If you have experienced one of the following:

  • Divorce
  • Can’t sell my house for what I paid for it
  • Lost job
  • Job Transfer
  • Behind on Payments
  • Upside down – I owe more than I can sell it for.
  • Too many repairs
  • Increased property taxes
  • Medical Hardship
  • Jump in Adjustable Rate Mortgage (ARM)

Our services can help!  Our angels are a resource for homeowners that have received a letter from their lender notifying them they are behind on payments.  We are licensed and experienced professionals that are here to assist you and answer your questions.  We will provide options still available to you depending on the current status of your situation.  The foreclosure process in our state is one of the most aggressive in the country, so time is your biggest enemy.  Even if you are not yet in foreclosure, but just behind on payments, it is important that you take action now.  Options will become more limited as more time passes.  Most importantly, our services are free to you. PLUS you may qualify for relocation assistance (Cash!) at closing! Some of our clients have received up to $3000 with HAFA funds.

What is a Short Sale?

With the help of our short sale angels (Licensed Realtor), the homeowner may be able to sell their property for less than the amount owed to the bank and walk away from the situation without any cost to themselves.  A short sale occurs when a homeowner owes more on their property than the property is actually worth, but the bank agrees to accept less than what is owed as payment in full.  The bank is willing to take a lesser payoff in order to avoid the foreclosure process.

Explanation of Short Sales

A short sale is an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in government policy improved the chances of getting a short sale approved.

A short sale is not a typical real estate transaction. Many parties are involved in a short sale.  The process can be difficult to complete without a qualified REALTOR® to help guide you and act as a liaison between all of the parties involved. You will want the advice and expertise of a REALTOR® who has your best interests in mind and will expedite the short sale transaction. It is essential to have a REALTOR® who won’t allow you to miss a detail that could delay closing the transaction in a timely manner and to the specifics required by all parties involved. A qualified REALTOR® with experience in short sales will also be able to find a buyer to complete the transaction.

Can A Home Seller Sell A Home For Less Than Its Mortgage?

This situation is known as a “short sale.” Home owners can negotiate with their lender an agreement in which your mortgage lender agrees to accept a payoff on the loan for less than the balance. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property as a foreclosure. The Homeowner also benefits by not having to go thru the eviction process and many lenders are offering a cash incentive to assist with relocation. Bank of America has up to a $65,000 cash incentive (typically we see $3,000 cash to sellers who qualify for a certain short sales).

A short sale also helps in maintaining home values in the community the property is located and helps the homeowner maintain a better level of credit compared to a foreclosure.

A Short Sale Listing Specialist and a Foreclosure Prevention/Short Sale Processor offers advice and alternatives to foreclosure and explained the benefits of the Mortgage Debt Relief Act that is extended till this December. With this Act expiring in a couple months, it has motivated distress homeowners to seek a closing prior to this sunset date, because short sales will come to a halt after the turn of the year due to homeowners fear of getting hit with a big tax bill.  The Mortgage Forgiveness Debt Relief Act of 2007, allows homeowners to complete short sales without crippling tax burdens. It releases homeowners from the obligation of paying taxes on the amount of debt that has been forgiven by the banks. Taxpayers are eligible for the tax break if the property is their primary residence.

Expiration of H.R. 3648: The Mortgage Forgiveness Debt Relief Act of 2007 is set to expire at the end of 2013. It has motivated distressed homeowners to seek completion of a short sale prior to December with the fear that short sales will come to an abrupt halt after the turn of the year due to homeowners’ fear of getting hit with a big tax bill. Potentially millions of people will find themselves stuck with a huge tax bill after foreclosure if the government doesn’t renew the Debt Relief Act or if homeowners do not finalize their foreclosure by December 31st.

The HAFA or the Home Affordable Foreclosure Alternatives that was launched by the US Treasury Department. The cost of processing a short sale is cheaper than filing for a foreclosure. In addition, lenders have realized that they are losing more money by processing foreclosures than short sales.  The HAFA program even makes it easier for lenders to encourage their clients to short sale on their property instead.

Homeowners considering a short sale must meet guidelines to qualify.

What if I am upside down and owe more on my mortgage than I can sell it?

Even in a down market, real estate experts say that sales price and property condition are the two most important factors in selling a home.  If a seller who has no equity and is forced to sell because of a divorce, job loss, moving to obtain a job, increase in property taxes or financial considerations could discuss a short sale or a deed in lieu of a foreclosure with a short sale specialist.

A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. A short sale licensed Realtor is necessary to assist in submitting a request/application (i.e. short sale packet) to the sellers current lender.  In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. However, this would be considered a more radical solution than just reducing the price and requesting a short sale.

Benefits To Sellers

Short sales have many benefits to sellers

  • A short sale will likely cost you nothing. In fact when involved in a short sale, the lender will almost always pay for all the costs involved in the sale including Realtor commission fees, conveyance taxes, back taxes and attorneys fees.
  • Has less effect on consumers credit standing.
  • Eliminate/Minimize the chances your lender will pursue you for a deficiency judgement. If you foreclose, your debt doesn’t disappear, especially if you owed more than the home eventually sold for. The lender may pursue you for this amount. You have the ability to negotiate this during short sale negotiations, but not if the home forecloses.
  • no judgements are filed when you are approved for a short sale.
  • Increase eligibility to obtain homeownership in the near future.
  • Avoid the stress of foreclosure. A foreclosure can be mentally and emotionally draining and publicly humiliating. A short sale will help you avoid this, and move on with your life.
  • Some services now offer large financial incentives for sellers to complete short sales
  • The Mortgage Forgiveness Debt Relief Act allows homeowners to complete short sales without crippling tax burdens.

Selling short can help protect your financial future, salvage your credit and save your dignity.

If you are wondering if a short sale is likely to help you. Let’s visit about your situation. I negotiate short sales with banks on the homeowners behalf. I have helped many people stop their pending foreclosures, negotiated debt forgiveness, and helped my clients move on with their lives. Short sales are complicated and require an experienced professional. As an experienced hort sale agent, I specialize exclusively in this transaction. Contact me to discuss your situation.

Short Sale Lenders/Servicers/Investors/Programs I have experience with: Bank of America, Chase, Wells Fargo, Fannie Mae, Freddie Mae,  AHMSI, M&T Bank, HomEq, PMH, One West Bank, Guaranty Bank, Aurora, Citimortgage, Vericrest, GMAC, MorEquity, Sovereign, Savings Institute, OCWEN, Bank United, Litton Loan Servicing, SPS,  PHH Mortgage Services, CHIF, Provident, Fifth Third Bank,  Liberty Bank, Nationstar,  Government HAFA Program.