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Why am I here? To help you find the best solution

Why am I here? To help you find the best solution

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Why am I here? To help you find the best solution

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  1. Short Sales Why am I here?To help you find the best solution Time is of the essence

  2. Short Sales I AM HERE FOR YOU Over 7 out of 10 Homeowners in distress go into foreclosure without seeking help. Time is of the essence

  3. Short Sales You are not alone There are many reasons why homeowners are unable to pay their mortgages and every situation is unique. My goal is to help you determine your best solution, whether it is to stay in your home or sell. I can negotiate with your lender to help you avoid foreclosure and the ensuing damage to your credit and emotions. Time is of the essence

  4. Short Sales Facing Foreclosure Foreclosure is a legal and professional proceeding instigated by a lending institution. As a real estate professional, I can provide you with the ANSWERSyou need to avoid foreclosure. Time is of the essence

  5. Short Sales I have the resources to help First of all, do not panic. I understand how frightening this is. Now is the time to explore your options. If you missed your property payment, local taxes, or condo and homeowner associations you may need to seek professional help now. Time is of the essence

  6. Short Sales It’s time to explore your options and you may need to take immediate action. • You can not make your house payment due to a financial or situation setback. • Your mortgage payments are more than you can afford now. Time is of the essence

  7. Short Sales Reasons for a Pending Foreclosure • Job loss/or job demotion • Sudden illness or medical emergency • Death in the family • Divorce • Loss of second income • Excessive debt obligations • Inability to afford an increase on your adjustable interest rate loan • Major home maintenance expense Time is of the essence

  8. Short Sales Reasons to Avoid Foreclosure • Your Credit scores will drop to under 500 points. • Damaging to your future credit history • In regards to government insured loans, you are held back for 5 to 7 years vs. 2 years on a short sale. • Foreclosure will remain as a public record on a person’s credit history for 10 years or more. • Most of your loan and even job applications have questions regarding credit history and is easily verified. • Has long lasting damaging effects on your credit history even after it’s removed. Time is of the essence

  9. Short Sales Reasons to Avoid Foreclosure • Many employers, renters, and insurance companies run credit checks. • Any one holding security clearances or holding jobs in the military, law, and government positions are in jeopardy. In some cases, your clearance may be revoked and your position terminated. • Your taxes with a foreclosure may be higher. It is advised to seek the council of a tax professional for details. Time is of the essence

  10. Short Sales Your Options • The repayment of all past due payments, late fees, penalties and costs due on an obligation secured by a deed of trust, or mortgage with the effect of reinstating the normal terms of the loan. • Resolution is viable up to the day of a bank sale. • Will offer you the quickest method for resolving a foreclosure. Reinstatement Time is of the essence

  11. Short Sales Reinstatement – How It Works Homeowner missed 5 payments on a $2000 a month loan. Reinstatement Total: 5 Months of missed Payments @ $2000/month $10,000Late Fees $500 Legal Fees $2000 Processing Fee $500Total Reinstatement $13,000 Time is of the essence

  12. Short Sales Repayment – The Most Common Many lenders can provide terms of 12 months allowance for you to repay your past due amount. You are required to make your regular monthly payment plus 1/12 of the past due amount each month for 12 consecutive months. The process involves lenders approval and a statement verifying that your financial hardship was temporary. The disadvantage of this plan is that you are paying a higher monthly payment at a time of financial hardship and your terms remain the same. Time is of the essence

  13. Short Sales Sell the Property If you have equity, you can of course sell and stop a foreclosure. Time is of the essence

  14. Short Sales Refinance Do you have a rising Adjustable Rate loan that is sky high now? This can be a good option even if your credit score has been damaged due to missed mortgage payments. You can refinance your existing first home loan to lower your monthly payment or get enough cash back to pay off past due amounts and other debts. Time is of the essence

  15. Short Sales Refinancing Pitfalls • You can spend valuable time trying to qualify for a loan and not qualify due to your credit score and financial situation. • You may not qualify for cash back. • You may have penalties for refinancing and many times, these can be very steep. • Your new loan will probably have higher interest rates resulting in an even higher monthly payment. • In many cases, this turns out as a short term solution rather than a permanent avoidance. Time is of the essence

  16. Short Sales Loan Modification • If you can make your regular payment, but you can't catch up with the past-due amount, Loan Modification is a common option. • This can be accomplished by increasing you loan balance or extending your loan for a longer period of time. • This will change your current loan and requires lender approval. Time is of the essence

  17. Short Sales Deed-In-Lieu of Foreclosure When you are in default, but can not qualify for any other Loss mitigation options, you can sign the house back over to the lender company. This will avoid public notice of a foreclosure, and has less of an impact on your credit scores. This so called "friendly foreclosure“ is still a foreclosure and has the same effect on your credit and ability to buy another home in the future. There are many things that must be done first and you are well advised to seek the opinion from your lawyer, especially in regards to taxes. Time is of the essence

  18. Short Sales Loan Forbearance • If you are experiencing a temporary hardship, you may be eligible for this type of help. • You may be allowed to reduce or suspend payments for a short period of time, agreeing to pay back the past due when you know you will have enough money to bring the loan current on a specific date. The money might come from an employment bonus, investments, insurance settlement, or tax refund. Time is of the essence

  19. Short Sales Bankruptcy A legal alternative that allows the borrower to clear any debt obligations by restructuring the payment terms. A bankruptcy stops the foreclosure process until the bankruptcy process is completed or the court allows the lender to resume the foreclosure. Unfortunately, many homeowners choose this option and make all the required payments, only to be hit with hundreds or thousands of dollars in additional fees once they emerge from bankruptcy. Unable to meet these additional burdens find themselves facing foreclosure right after bankruptcy. Time is of the essence

  20. Short Sales Short Sale This allows you once in default to sell your home and use the net sale proceeds to satisfy the mortgage debt even though these proceeds are less than the amount owed. Also known as a real estate short pay-off or a pre-foreclosure workout, a short sale is an agreement with a lender to accept less than the amount owed by a borrower through the sale of the property to a buyer. Time is of the essence

  21. Short Sales The best time to begin the short sale process Right now, short sale situations are very time sensitive and negotiations can take time. The sooner we can begin negotiating with your lender, the greater the chances of a successful resolution. You do not have to wait for the lender to send you a notice of default or initiate a formal foreclosure proceeding. Time is of the essence

  22. Short Sales Short Sale Definition When a borrower owes an amount on his property that, when combined with closing costs and commission, is higher than current market value. A negotiation is entered with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is ‘sold short’. A homeowner is ‘short’ when: A Short Sale Occurs When: Time is of the essence

  23. Short Sales What is a Short Sale • An agreement with you, during the beginning stages of a foreclosure, and your lender, allowing the home to sell for less than your outstanding loan balance. The mortgage holder would accept less than the loan amount in order to avoid a foreclosure. The "deficiency" is the difference between the amount owed and what the bank collects at the short sale. • Short sales happens when a you owe more on your house than you can sell it for (upside down). You can start negotiation with your lender to sell the house for less than is owed. You close on the property and the property is sold short. Time is of the essence

  24. Short Sales Qualifying Factors for a Short Sale • You must have a financial hardship • The home is worth less than the unpaid balance due the lender. This can include prepayment penalties. • You have no assets. • The mortgage is in or near default status. In the past lenders would not even consider a short sale if the payments were current, but that is no longer the case. Time is of the essence

  25. Short Sales What I Charge for a Short Sale Unlike other loss mitigation companies, I provide my services at no cost to you. My fees are never paid by you. I am only compensated if we successfully negotiate a short sale. Absolutely Nothing Time is of the essence

  26. Short Sales What to Consider • It takes a buyer with an offer to purchase your home to qualify for a short sale. So even if you meet all the other criteria, you are still dependant on a buyer. • You are also dependent on the lender accepting the buyer's offer. • You should consult with a real estate or tax lawyer to determine your tax consequences. Time is of the essence

  27. Short Sales How Long will a Short Sale Take to Complete Every short sale is different. It will usually take about one to four months. The timing depends on how fast we can begin negotiating with your lender. If you are facing foreclosure or have an auction date, the process can be expedited and we may even have the lender postpone the auction date. Time is of the essence

  28. Short Sales Four Cautions 1. Start now, do not wait or ignore your situation. It is not uncommon for homeowners to just accept what they see as the inevitable, and let foreclosure start. Don’t let it happen – the damage to your credit will follow you for years. 2. Do not sell your home at a huge discount. Unless a foreclosure sale is less than 45 days away, you have time. Typically, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal is very slanted in their favor. Time is of the essence

  29. Short Sales Four Cautions 3. Do not authorize a buyer to deal directly with your lender. A buyer probably has one intention and that is to negotiate a low, probably too low a price, with your lender. I can help, and will cost you nothing. I have negotiated for many homeowners like you and won. The lender wins too. They do not want to take your property and that’s why they will negotiate to get the deal done. 4. Absolutely DO NOT ever deed your property to a third party without absolute confirmation your loan has been paid off! Time is of the essence

  30. Short Sales Four Main Steps to Completing a Short Sale • I will work with you to get all of the required documentation that your lender will require from us to send to them. Together, we will gather all the listing paperwork and schedule an appointment to see your home and prepare it to be put on the market. 2. I will aggressively market your home and work with potential buyers for a successful sale and closing. Time is of the essence

  31. Short Sales Four Main Steps to Completing a Short Sale 3. This step is presenting the offer to the bank. This is the tough part and takes skill and experience. The actual negotiation and approval process can take as little as 2 weeks or as much as 4 months. Averages range from 30-90 days from the beginning process to the short sale approval. Communication between us and the lender is key and many times involves daily phone calls and faxes back and forth. The process is not quick in most cases, but with the right team working on your behalf, you can be at rest knowing that everything is being handled diligently and with care and discretion. 4. This last step is the period of time between approval from the bank and the buyer closing on the home. We prepare all of the buyers that we work with for a timely closing. Time is of the essence

  32. Short Sales The process and your involvement • I have specific documentation and requirements for a successful short sale. This includes, but may not be inclusive to the following. • Authorization to Release Information form • Short Sale Disclosure • Hold Harmless • Homeowners Documentation Checklist • Homeowners Financial Worksheet • Keep your property presentation ready • Be open to all communication with the mortgage company and me. Time is of the essence

  33. Short Sales Worried You Could Be Facing Foreclosure? Now you have answers, but TIME IS OF THE ESSENSE

  34. Short Sales Call Today! Beryl Gosney Short Sale Specialist (425) 344-2222 Time is of the essence