Short Sale My Home

So you have decided that you want to short sale your property but you want to make sure you are going about this in the right way.  There are several factors to consider when short selling your home, so it is always best to speak to a short sale realtor who has the experience and knowledge to execute a short sale successfully.  Here are the steps to complete a short sale:

1. You are going to call your lender directly and make sure you get in charge of the person who deals with short sales.  There is a strong chance that they will pass the phone around 3 or 4 times, until it gets back in the hands of the person you don’t need.  You want to get a hold of the person who will be making a decision, such as the negotiator or someone higher up like a supervisor.  Do your best to get someones telephone number or email address, who you can contact regularly.   Believe me when I say, this will save you hours upon hours of waiting on the phone!
2. If you decide to work with a third part to negotiate the short sale on your behalf, the lenders are going to want to have a letter of authorization, which allows the third party to negotiate on your behalf. If you need to get them in contact with your lender right away, you can conference your lender and authorize it over the phone.  Eventually you are going to want to get the letter of authorization in, because it will be annoying authorizing it every time they want to negotiate the file.
3. The next most important document will be the preliminary net sheet.  This is the document that will estimate how much your lender will be netting after the sale of the property.  The lender is going to want to make sure that the seller of the property is not pocketing any cash from the short sale.  This document is going to show where all funds in the transaction are going.

4.  The hardship letter is a statement describing the difficulty that the homeowner is facing. This is where you want to create a case to the bank that you won’t be able to make payments moving forward.  You want to sound as convincing as possible.  At the same time you want to make sure to be honest.

5.  Next you are going to have to show the lender your income and assets. The lender is going to want to know the areas in which you have any money, such as stocks, real estate, savings, etc… Lenders want to see everything!!

6.  Your lender is going to need a copy of your banks statements.  A comparative market analysis is a key factor in the short sale process, because the lender is going to want to make sure that the offer that comes in on your property is close to the CMA.  The company you are working with should be able to pull up a strong CMA, giving you an idea of what you need to short sell the property for.

7.  The last component which makes a short sale come to fruition is a purchase and listing agreement. To make a short sale happen you need a listing agreement and a valid offer in on the property.  So please make sure to get this to the lender as soon as you get them in.

8.  Many times the lender will counter the offer and you will have to go back to your buyer and get them to increase the purchase price.  The lender might also ask to reduce commissions, these are the key factors that are involved with a short sale.

Tips on Buying Foreclosures

It has become extremely easy to buy foreclosed homes.  The hassle of going though a million files to find the right foreclosed home is no longer a reality.  Many people are going through real estate agents to purchase foreclosed homes.  Here are some tips when it comes to buying foreclosures:

Buy from a Bank

When you purchase a foreclosure from the bank you can inspect the property for any defects before deciding to purchase.  In addition to this you can finance the property with a mortgage, which allows you to leave all your cash at home!

Work with a Contractor

Many investors buy foreclosed properties without having a thorough inspection of the property.  It is a good idea to bring a contractor with you , so that they can map out the repairs needed and how much it might cost you.  This is extremely important when buying foreclosures.  The main problem many investors face is underestimating the repairs needed on a property.  Many contractors will give a free estimate of how much and how long the repairs will take.

Keep the Bid Low

Banks have a large inventory of homes right now, which means that there is a large number of homes that has been sitting for a long time.  It is important to do your research on these properties and start your bid out low.   If one does a sufficient amount of research you can bid low and most likely get the property you want!  You are going to want to set your first offer in at 20% below market price.

The Waiting Game

Some investors are getting lucky and receiving answers withing the 48 hours of their bid, others are dealing with lenders who are taking as long as three months. It is important to stay patient because your investment will be well worth it.   The only issue with waiting is that, in the interim someone can bid a higher offer which will push your offer out.  The best thing to do, is to have several properties to invest in, and make sure that you are pre-qualified before bidding.  Most importantly you want to always follow up!

What is a Foreclosure?

What is a foreclsoure?

Homeowners are familiar with the word foreclosure, yet don’t understand the severity of it.  In this day and age it is important for homeowners to understand the effects of a foreclosure.  A foreclosure is when the lender gets a court ordered termination of a homeowners mortgage.  This forces the homeowner out of the property.  This will remain on a persons credit for the next 5-7 years.  Many times the bank will come after you for the difference in home value and amount owed on the loan.  A homeowner should avoid foreclosure at all costs.

Buying Short Sales Over Foreclosures

The million dollar question for investors is : What is a better purchase a short sale or a foreclosure?

Generally speaking a short sale is a better purchase than a foreclosure.  The reason for this is that they are priced very similar, but short sale homes are usually in better condition.  In addition to this when you buy a short sale you are helping the previous homeowner prevent foreclosure, which will stop any detrimental effects to their credit.  When buying a foreclosed home, one can expect many faults with the property.  The only downside to purchasing a short sale home is that you will have to wait for a while until the bank approves your offer.  Believe me the wait is well worth the equity you will gain in the investment.

Short Sell Your Home

A short sale is an agreement with the lender to accept less than the amount owed by a borrower. This agreement from the lender releases the borrower from the mortgage, helping them prevent foreclosure. This is the best option for any borrower who is facing foreclosure.

A short sale will not affect your credit score as poorly as a foreclosure would. It has been proven that a borrower will qualify to purchase another property 18-24 months after a short sale. This is greatly beneficial to homeowners considering the current market conditions, which in this case will be allow short sale candidates to purchase a property when the market bottoms (18-24 months). Homeowners who short sale now, will be able to have equity in new properties purchased in the next 18-24 months. We have helped homeowners in all types of situations; we will be able to help you too. Whatever your hardship may be, one of our counselors will be able to pave your way to a bright new future!

In order to be eligible for the short sale, Housing Assist will have to prove to your lender that you are a victim of some type of hardship. This will be the reason you are unable or will be unable to make payments moving forward.

What is considered a hardship?

• Loss of primary income
• Unemployment
  
• Health Conditions
• Medical expenses
• Relocation
• Failure of business
• Bankruptcy
• Death of spouse or significant other
• Divorce or separation

We have built relationships will all major lenders and will be able to establish a case for you. Don’t be discouraged, there are options available to you!! Call a Housing Assist counselor today at: 888-877-0078

OUR SERVICES ARE 100% FREE.

How to Avoid Foreclosure

How to Avoid Foreclosure?

There are several steps involved in avoiding foreclosure.  I have so many friends call me regarding the auction of their property and asking for any type of help or advice.  Ok so here it goes, to all of you who are facing the same types of problems as my friends.

First and foremost, you are going to want to get as much information as possible.  Some homeowners really don’t understand that there are other options out there and it is important to ask how you can avoid foreclosure.  This is a norm in society at this point, so there is no need to feel embarrassed.

A couple of options available to you are filing for bankruptcy, loan modification, deed-in-lieu, and short sale.  These are the options that will help you prevent foreclosure.  When filing for bankruptcy the banks might be able to help you keep your house and repay the lender under different terms set up for you.  When attempting to get a loan modification, please don’t get your hopes up because there is a large number of homeowners who are being denied.  A loan modification might reduce your monthly mortgage payment but it will not decrease your negative debt owed on the property.  A deed-in-lieu is when you hand over the keys to the bank and just walk away from the property.   In essence you are giving up the deed to avoid foreclosure.  Lastly, if you are upside down on your property, and don’t want to be foreclosed on then a short sale is your best option.  It is the nest way to get your negative debt cleared.  The only issue with a short sale is that there can be some tax implications.  These are your best options to avoiding foreclosure.

The next step I would advise to homeowners is to stand up and get the right type of help.  Don’t be afraid to ask for help.  Look for some credible companies on the internet and go with the company that you feel is most credible.  Be careful who you choose to work with, as there are several scam companies out there.  Just because someone says that they specialize in short sales, does not mean that they actually do.  Get as much research as you possibly can and make sure they have successfully completed short sales prior to working on your file.

It is important to get started immediately and make sure that you don’t procrastinate on this.  This is your future and you need to act with a sense of urgency.

One should understand the tax implications when looking to do a short sale.  Fortunately the president just signed a law that forgives homeowners of these tax implications, but it is always prudent to speak to a CPA who can advise you better.

This can be an emotional time in a persons life, as you are losing a home and needing to find another property to live in quickly.  So it is important that homeowners act fast, and don’t wait on this.   But just remember that you are making the right decision and you are setting yourself up for a brighter future!

Housing Assist and Short Sales

A short sale is an agreement with the lender to accept less than the amount owed by a borrower. This agreement from the lender releases the borrower from the mortgage, helping them prevent foreclosure. This is the best option for any borrower who is facing foreclosure.

A short sale will not affect your credit score as poorly as a foreclosure would. It has been proven that a borrower will qualify to purchase another property 18-24 months after a short sale. This is greatly beneficial to homeowners considering the current market conditions, which in this case will be allow short sale candidates to purchase a property when the market bottoms (18-24 months). Homeowners who short sale now, will be able to have equity in new properties purchased in the next 18-24 months. We have helped homeowners in all types of situations; we will be able to help you too. Whatever your hardship may be, one of our counselors will be able to pave your way to a bright new future!

In order to be eligible for the short sale, Housing Assist will have to prove to your lender that you are a victim of some type of hardship. This will be the reason you are unable or will be unable to make payments moving forward.

What is considered a hardship?

• Loss of primary income
• Health Conditions
• Medical expenses
• Relocation
• Failure of business
• Bankruptcy
• Death of spouse or significant other
• Divorce or separation
• Unemployment
  

We have built relationships will all major lenders and will be able to establish a case for you. Don’t be discouraged, there are options available to you!! Call a Housing Assist counselor today at: 888-877-0078

OUR SERVICES ARE 100% FREE.

What is Bankruptcy?

What is bankruptcy?

To put it in simple terms, bankruptcy is when a person legally declares that they will not be able to pay any outstanding debts that they have.   There are different types of bankruptcy, but in most cases you will haev to meet with a judge, or be discharged of all your debts. Businesses also have the capability of declaring bankruptcy.  There are two scenarios when a business declares BK, the first is the business will close, adn the second is that the business will operate with  smaller payments to its debtors.  One should always consult with a CPA when it come to filing for bankruptcy.

Benefits of a Short Sale

Many homeowners are still trying to understand what a short sale is and what the benefits of a short sale are.  I will explain the benefits to you, so that all homeowners know what they can expect out of a short sale.  Firstly, it is important for many homeowners to know that they have sold their home; there is a sense of pride that goes out the window in a foreclosure, so a short sale restores much of that.   Next, there is definitely a poor social stigma that is attached to the word Foreclosure.  For homeowners it is almost worst than saying Bankruptcy.  In addition to getting rid of any poor social stigma, homeowners who choose to short sale don’t need to make mortgage payments moving forward.  But the major question for most homeowners is, when will I be able purchase a new home?

Under Fannie May guidelines, if your credit report does not show a 60+day late fee, you can purchase another home immediately after a short sale.  If you do show a late pay, then you will be able to purchase a home after 2 years, as oppose to 5-7 years in a foreclosure.  These are the major benefits of a short sale.

Delinquent on Mortgage Payments

To be delinquent on mortgage payments is the same as being behind on your mortgage payments.  If you are a homeowner who has fallen behind on mortgage payments, it is extremely important to contact a counselor.  A loss mitigation counselor will be able to walk you through the steps that need to be made in order to prevent foreclosure.  There are several options available to homeowners who are delinquent on their mortgage payments.  Some of which include deed-in-lieu, loan modification, and short sale.

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