SHORT SALE CONSULTING AND PRE-FORECLOSURE ASSISTANCE
We work with distressed homeowners and help them to avoid foreclosure. We have on our side, a fantastic negotiator who has closed over 2000 short sales, and prides himself on not getting deficiency judgments. We have developed good relationships with lenders, attorneys and title companies; and we do not charge any upfront fees for this service.
WHAT IS A SHORT SALE?
A real estate short sale is when a third party or homeowner negotiates a discount on the payoff amount due to a mortgage company. This happens when a homeowner owes more money to banks and/or lien holders than what the property can currently sell. In order to sell a property that is "upside down" in equity, the bank must agree to accept less than what is currently owed on the property. This typically is done for a homeowner who is behind on mortgage payments and facing foreclosure. It is best when a homeowner is 90 days late (sometimes less) on their mortgage and has no alternative to settle up and not enough equity to sell fast.
HOW DO YOU BENEFIT FROM A SHORT SALE?
A short sale allows you to stop foreclosure and get a fresh start. A short sale may allow the seller to buy a new home again in as little as 2 years. A foreclosure remains on your credit report for 10 years, and you may not be able to purchase another home for 5 - 7 years. Short Sales are not reported on a credit history. It will typically be reported as "settled", "paid as agreed," "paid as less than agreed." or something similar. Current or future employers running a credit check will see a foreclosure, but they will not see a short sale. Deficiency judgments may be negotiated between the homeowner and lender in a short sale, and a good negotiator is often able to negotiate NO deficiency judgment. On the other hand, banks do not negotiate deficiency judgments after a foreclosure, and you will likely have a judgment filed.
SHORT SALE VS FORECLOSURE
A short sale allows you to get a fresh starts and may allow the seller to buy a new home again in as a foreclosure remains on your credit report for 10 years, and you may not be able to purchase another home for 5 - 7 years.
Current or future employers running a credit check will see a foreclosure in your credit file; and you will more than likely have a judgment against you for a deficiency balance, because banks do not negotiate this balance after a foreclosure, However, short sales are not reported on a credit history, and will typically be reported as "settled", "paid as agreed," "paid as less than agreed." or something similar. Deficiency judgments may be negotiated between the homeowner and lender in a short sale, and a good negotiator is often able to negotiate so that there is NO deficiency judgment.
FORECLOSURE STATISTICS
1 out of every 200 homes will be foreclosed upon. For a city like Washington, D.C.that translates to 3,000 Washingtonians losing their homes to foreclosure each year, according to the Mortgage Bankers Association. If this cycle continues, every three months 250,000 new families enter into foreclosure nationwide.
A slower real estate market can translate into falling prices and home values. As a result, homeowners who opted for adjustable rate mortgages may now find that as their mortgage rate adjusts higher, their home value is lower and refinancing is no longer an option. Six in 10 homeowners wish they understood the terms and details of their mortgage better when they originally agreed to the terms. A Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2010 states that more than 6 in 10 homeowners delinquent in their mortgage payments were not aware of services that mortgage lenders could offer to individuals having trouble with their mortgage.- Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2010.
SHORT SALE 101 - A WIN/WIN/WIN SOLUTION
Lenders Win
Foreclosures are very expensive for banks. Lenders not only lose money when the house goes to sale, but the bad debt also limits the number of new loans the lender can award to others short sales allow lenders to cut their losses and clean up their books.
Homeowners Win
A completed foreclosure absolutely devastates a homeowner's credit score and
can cause extreme stress and embarrassment. A successful short sale allows them to walk away from the situation and begin over with a fresh start. Investors Win short sales can produce large profits for investors with minimal expense or risk. The huge equity positions created allow multiple exit strategies, including a quick turn for huge chunks of cash or great cash flow from rentals or lease options.
We are here to help you (24) hours a day (7) days a week. Please complete our Short Sale Pre Qualification Document.docx