Short Sales

A Short Sale has been referred to by more than one real estate professional as a dignified solution to a financial crisis. The reality is that many homeowners today owe more on their homes than they are worth and don’t know what to do. If you have exhausted other options like a mortgage modification or a refinance or simply can no longer afford your home due to the loss of a job or other hardship, then Short Sale Premier Advantage may be the right avenue for you.

You’re not Alone…
It is estimated that 1 out of every 6 families who have a mortgage owe more than their home is worth and in the U.S., 11% of all mortgages are at least one payment behind. The thought of a looming foreclosure can create a tremendous amount of stress for you, family and even friends. However, if you’re proactive and willing to put forth a little effort, foreclosure is not necessarily your only option.

A Successful Short Sale Can Be Less Harmful Personally and Financially
For every individual or family, each set of circumstances will obviously be different. To be able to know the exact path to take and the most likely impact would be impossible to determine without first examining the details. But however you approach and transact a short sale; your credit history, credit score, chance of obtaining a mortgage, and even employment opportunities in the future will be greatly impacted. But a successful short sale will still have less of an impact on your life than a foreclosure, for example;

• A short sale is a negotiation with your lenders, a foreclosure is process determined by laws.
• A short sale can have a less severe impact than foreclosure on your credit score.
• A short sale can have less severe tax consequences than foreclosure.
• A short sale may allow you to be able purchase another home sooner than a foreclosure.
• In a short sale there is an opportunity to negotiate with your lender/s to do away with or reduce deficiency claims against you, in foreclosure there is not.
• If your work requires that you have security clearance a foreclosure on your credit history may not allow you to get or maintain a security clearance.
• Current and future employment may be in jeopardy with a foreclosure on your credit as many employers use credit reports to evaluate potential job applicants and current employees.

Short Sale Qualifications
There are three simple qualifications almost every lender will want to see to before even looking at a short sale solution:

1. Financial Hardship-your mortgage company will want to see that you have a verifiable material hardship that is affecting your ability to pay your mortgage. Hardships can be issues such as a payment increase, job loss, income decrease, medical expenses, divorce and any other issue that can be documented and is truly affecting your ability to pay.
2. Monthly Shortfall-your lender will want to see that on a monthly basis your hardship is causing you to have a monthly shortfall. This means that they want to see that your monthly income is less than your monthly expenses. This is a simple calculation that can be done by adding up all your expenses and comparing them to your total income. If your expenses are higher than your income, you have a shortfall.
3. Insolvency-your lender or servicer will want to see that you are insolvent prior to approving a short sale. Simply translated this means they want to see that you do not have the ability to pay down the balance of your mortgage in liquid funds.

The Short Sale Premier Advantage
Our team of Realtors™, short sale negotiators, and title officers has a wealth of experience with pre-foreclosure transactions and a 90% success rate with short sales. Here is a very brief list of what we do for our short sale clients;

• Assess your short sale situation including a market analysis of your home’s true value.
• Professionally market & show your home to attract potential buyers.
• Establish communication with your lender/s.
• Prepare documentation.
• Negotiate with the buyer.
• Negotiate with your lender/s.
• Close the deal!

Don’t Delay
Each day is important when you are exploring pre-foreclosure options-don’t wait until it’s too late. We’re here to help and the advice is free.
Contact us today to learn more about the Short Sale Premier Advantage!