|
Short sales, in a nutshell............
Tracy CA and Central California Foreclosures
The changing mortgage industry and a slowing of appreciation are
two factors in today's real estate market contribute to the high rate of
foreclosures. But here is the secret, the bank is not in the business of owning
and selling real estate. They loose thousands of dollars in the process and
would be much happier to settle it before it reaches that point, not because
they care about you or your credit but because they will save thousands on there
bottom line!!!!!! That's where a short sale comes into play. LENDERS actually
prefer you to do a SHORT SALE. Homeowners who cant make there monthly payments
have the option to sell there home for less then what its worth. Lenders are
increasingly willing to work with borrowers faced with a financial hardship to
accept a discounted payoff on a mortgage. By completing a Short Sale, your
lender has arrived at a solution that is, for them, much better than a
foreclosure. Bottom line, your lender wants to work with you.
What is a Short Sale?
If
I do a Short Sale, how much will I have to pay to sell my home?
How do I get started on a Short
Sale?
Why would a
mortgage company agree to accept a Short Sale?
Do lenders approve all Short
Sales?
How does a Short Sale affect
my credit?
What sort
of hardship would my lender consider legitimate?
Types of hardship that apply
What is a Short Sale?
Short Sale is the sale of a home when sales proceeds do not fully pay off the
existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the
loan.The best part, the existing lender pays virtually all sales costs,
including commissions, escrow and title fees and repair costs. You get your home
sold, the loan(s) paid off and you avoid foreclosure.
If I do a Short Sale, how much will I have to pay to sell my home?
Nothing, zero, zip. It’s true, in most cases you will pay literally no sales
costs if your lender approves the Short Sale. All commissions, title and escrow
fees, and even most repair expenses are paid by the lender as part of the Short
Sale approval. Remember, the lenders motivation to approve Short Sales and
accept the resulting losses is to avoid bigger losses through foreclosure.
How do I get started on a
Short Sale?
It’s easy. Email me today and we will get started.
Sales@tracyhomes.com If you would
prefer to discuss it on the phone, or set an appointment call 209-833-7777 or
1-800-894-7282. There is no charge to you to or fee to you ever. The bank
pays us to sell your home.
Why would
a mortgage company agree to accept a Short Sale?
1)Legal Concerns – Mortgage lenders have come under legal pressure to
work with borrowers to equitably resolve situations where borrowers are unable
to meet their mortgage obligation, particularly when the borrower makes an
effort to arrive at a compromise solution.
2)Wall Street is Watching – Mortgage lenders rely heavily on their
ability to package and sell bundles of loans on the secondary mortgage market.
They need to sell these bundles of loans in order to put the funds back to work
by loaning the money again and collect loan fees along the way. When a home is
in foreclosure its a pure loss for them.
3)Asset Management Expenses- If a lender acquires a property through
foreclosure, the property will be managed until it is repaired and resold. The
bank has to pay someone to make repairs, keep utilities on, and so on.....
4)Reserve Requirement- Delinquent and non-performing loans place another
burden on mortgage lenders. These funds cannot be put to work generating new
loan fees until the bad loans are resolved.
Do lenders approve all Short
Sales?
NO. That is why it is critical to work with someone that has extensive
experience at getting Short Sales approved.From the presentation of the Short
Sale package to the lender to working with the lenders Loss Mitigation
Department, we know how to keep the file moving towards approval.
How does a Short Sale affect
my credit?
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure
is the most damaging event your credit status can encounter - worse than
bankruptcy. By avoiding foreclosure, you will likely be able to resume normal
borrowing (car loans, credit cards, consumer goods and such) relatively quickly.
What
sort of hardship would my lender consider legitimate?
Each Short Sale is subject to each different lenders requirements. In General ,
as long as the hardship is real and the mortgage company believes the loan is
likely to become delinquent as a result, the Short Sale request will be
processed by the Loss Mitigation Department. A big key to getting Loss
Mitigation to accept a hardship is to submit a strong hardship letter. This is
something I specialize in. The hardship letter sets the tone for the entire
file. Below you will find a list of “hardships” that are common and frequently
accepted by mortgage lenders.
Types of hardship that apply:
Family illness or injury
Illness or injury in the extended family – particularly if it forces relocation
Job relocation when the property is equity deficient
Job loss or significant income loss
Divorce or split of domestic partners
Adjustment in mortgage payment or unforeseen increase in living expenses
|
