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Ventas Corto en Espanol / Short Sales in Spanish

 

Welcome * Bienvenido
             Marzia Rivera, Broker
                                                          
239.540 . 4884

Southern World LLC
WORLD CLASS REAL ESTATE


 

Pre Foreclosure? 
DON'T MOVE OUT
OF YOUR HOME UNTIL YOU HAVE ALL THE INFORMATION

                 SW Florida Short Sales.....this is an option

 

It does not cost you commissions to sell your home, the Bank Pays

Please take the time to read the information on these page or simply contact me with 
your questions.  There is much you should know before you pack and find a place to rent.  
I am a Broker REALTOR©  and Property Manager and would love to place you in another 
home but first you should stay in your home and seek a short sale rather than a foreclosure 
Contact me MarZia RiVera today! to assist 239-540-4884

 

Por favor, tómese el tiempo para leer la información de la página en espanol, click aqui o simplemente 
contactarme con sus preguntas. Hay muchas cosas que debe saber antes de encontrar un lugar para alquilar. Soy un administrador de propiedades y le encantaría le coloque en otro hogar pero primero debe estancia en su hogar, buscar una venta corta en lugar de una exclusión
Contactar MarZia RiVera hoy! para ayudar te 239-540-4884

Short Sale Information,  We can help you. Podemos ayudarle
 

       Sales, Court Auctions, Management, Leasing, Residential, Commercial

 

Is a Short Sale Right For You?  

Feeling overwhelmed by your home mortgage? Banks don't want your home, DON'T MOVE OUT UNTIL YOU HAVE ALL THE INFORMATION! They want you to seek a short sale, they want you to stay in your home and although it seams they don't those making the calls to you don't represent the whole of the banks.  A lender approved Short Sale may be the answer.  This process takes time, all of which you could be living in your home saving yourself out of your hardship.  We do all the work with your mortgage company and you can avoid the damage of foreclosure - at no cost to you from us, the Real Estate Company, when a short sale is closed.  Depending on your hardship the bank may or may not settle at a different level.  Get the information and arm your self with the knowledge to make the right decisions for you and your family, tu familia.

What is a Short Sale?

A real estate Short Sale is a form of agreement between the seller of a home and their lender, allowing the home to be sold for less "short" of the existing outstanding loan balance. The mortgagee would accept less than the loan amount in order to avoid a foreclosure proceeding. This short sale would result in a substantially discounted purchase price from your mortgage for the buyer of the home. The buyer would then proceed with the purchase of the home much the same as in any conventional Residential Real Estate transaction just with more paper work.

The best part, the existing lender pays virtually all sales costs for the home owner, including commissions, taxes, escrow and titles fees. You get your home sold, your loan's paid off and you avoid foreclosure.  Your credit is going to get beat up enough, don't take the hit of a foreclosure as well.  Talk to MarZia@SouthernWorldLLC.com TO PERFORM A SHORT SALE ON YOUR HOME.

 

Put simply, it is the sale of a home which is completed through negotiation with the existing lender(s) in which the lender(s) agree to accept less than the full amount owed to satisfy the debt and allow it to be “paid off,” (short).

Foreclosure Process Timeline

bulletNotice of Default ( NOD) recorded at minimum three months delinquent, some banks take longer to record but always be alert and answer the motion when it arrives.  I can help you with this as well.

bulletNOD Period – 90 days – Borrowers has the right to cure the mortgage throughout the entire 90 days. After 90 days, the notice of Trustee’s Sale can be recorded and published.

bullet

Trustee’s Sale – The Trustee’s Sale can be scheduled as quickly as 21 days after the recordation of the Trustee’s Sale notice. In most cases the “sale date” is closer to 30 days after the Trustees’ sale notice is recorded. The borrower has up to five days from the sale date to redeem the loan.  In Florida the minimum time taking at this update is 5 plus months from the Notice of Default to Sale Date.  Don't wait call me to list your home today so a Lis Pendon never shows up on your public record at the court house.  Then prior to closing date I can find you a home to rent.

Call Our Short Sale Team now for help 239-540-4884 www.SouthernWorldLLC.com 



Click on the links underlined for detailed information

What Are Your Options? If you have fallen behind on your mortgage find the option that is best for you.
What We Do and 
What We Don't Do
We are here to provide you with options and answers. We do not try and buy your property. Get the details.
Foreclosure Update and Stats Click here to get information on mortgage delinquency and mortgage foreclosure activity in Florida
Four Things Not to Do Four mistakes you don't want to make if you fall behind on your mortgage.
Frequently Asked Questions
Short Sale
Foreclosure
We have answers to your questions on Short Sales and Foreclosure, so you can see if a short sale is right for you.
Short Sale and Foreclosure Terms

1099 Cancel of Debt Information

If you think many of the terms used in discussions on Short Sales and Foreclosures sound foreign, you are not alone. Let us take the mystery out.
Foreclosure Process Timeline Information on the timing of events when a mortgage becomes delinquent in the state of Florida.
What About My Credit? One of the biggest benefits of doing a Short Sale for the homeowner is to avoid the credit damage caused by Foreclosure. Here's some more details.
Buying A Short Sale
INVESTORS CALL US!
If you are an investor looking for a deal that gives you instant equity, we offer full Property Management, or a home buyer just looking for a good deal, buying a short sale may be your answer. 
Seller Information

CALL US TODAY To list your home, We will handle the complete process, you can relax now and think of what is best for your families next move.  Ask us for rental homes.

We specialize in the sale of homes that are equity deficient - homes with loan balances at or above the home's value.

Homeowners around country are finding themselves faced with very difficult decisions because their mortgage balance is higher than the value of their home. If you find that you need to sell your home and your loan balance is too high, what do you do?

 

No Upfront Fees to process a Short Sale / 
                        You Pay NO COMMISSIONS NO CLOSING COST

The bank pays our commissions and your closing cost, You may only need to pay for an appraisal if your bank is refusing to accept the short sale offer.  Your only cost would be enlisting an Attorney.

In most cases, you can work with your mortgage company to determine what options are available to you to resolve your delinquent mortgage. If the problem that led to your delinquency is temporary, you may want to explore the possibility of a Forbearance or loan modification agreement with your mortgage holder.

If your situation is so complex that you feel you need guidance, call us. We do not charge consulting fees and we will do all we can to give you the help you need.

It is possible that your situation involves legal issues that call for advice from an attorney and or accountant. In that case, you should consult with those that are well versed in either real estate or contract law.

DON'T MOVE OUT OF YOUR HOME WITHOUT ALL THE ANSWERS! 
If you have already moved, lets discuss renting your home while the short sale is in process

 

You Have Options

If you have fallen behind on your mortgage, you will receive information – and lots of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them.

Don't Do It!

Don’t do anything until you understand your options.

Here are some of your options:

Sell Your Property

bulletSell the property at fair market value and put your equity in your bank account – where it belongs. We can help here and we will be sure you get your equity.

A Short Sale

bulletIf you owe more than your home is worth, We can look at negotiating a discounted payoff with your mortgage company on your behalf to get approved for a Short Sale. We have done many of these, the bank won't proceed without the home being listed on the MLS while the short sale is in progress.

Refinance

bulletRefinance the property and pay off existing loans.

We have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.

Negotiate a Forbearance Agreement

bulletNegotiate a Forbearance Agreement with your mortgage company.

For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.

First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.

Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.

Do Nothing

bulletOf course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are far more serious and damaging then a short sale. Let’s at least consider potential solutions that help you avoid foreclosure.  IT IS NEVER TOO SO LONG AS THE COURT HAS NOT SAID SOLD.

Call or send us an email. We can make things easier than they might seem, and we will do a lot of the legwork.

 

 

What We Do...and What We Don’t Do

Getting your Short Sale approved – that is our number one goal. Along the way we will take the time to help you understand the process.

It is our job to prepare you for the Short Sale process, if you feel that is your best option. We will keep you informed along the way so you know what progress is being made.

Sometimes we have to ask tough questions. In order to help you select the solution that is best for you, we will need information. We will not, however, lose sight of who we are serving.

At all times, your interests come first – you have our word on it.

 

What We Do

bulletListen to you, so we understand how to help

bulletProvide guidance, so you can move in the right direction quickly

bulletPut together a great Short Sale file, so your lender will want to work with us

bulletAt all times PUT YOUR INTERESTS FIRST!

 

What We Don’t Do

bulletWe don’t charge you to sell your property

bulletWe don’t deed your property to a third party and give up control of your home

bulletWe won’t lie to a lender to save a loan

bulletWe don’t ask for any up front fees – ever!

 

 

Foreclosure Update

Even in the best of times in the real estate market property owners encounter unfortunate circumstances and fall behind on their mortgage payments. In the state of Florida, the foreclosure timeline, including the three months the owner must be behind before the notice of default can be filed, is nearly 8 months. In most cases, enough time to cure the loan, default or sell the property conventional or as a short sale.  Your reason for foreclosure does not need to be that you are upside down on the mortgage, for any reason you can short sale

Over the next several months it appears likely that many owners who have fallen behind on their mortgages may not find it easy, or even possible to cure the default and avoid foreclosure. Home prices in the United States have leveled off and in some cases have trended down. Because of the aggressive loan origination practices of the past few years, many borrowers have put little or no money down when purchasing. Any disruption in the property owner’s income puts the mortgage at risk.

As the chart below indicates, the number of homes going through the entire foreclosure process is increasing. We will closely monitor this situation and provide regular updates to keep you informed.

For those looking for buying opportunities, it seems likely that we will begin seeing many more bank owned properties ( REO ) available for sales.  It was very common in the mid-90’s for lenders to negotiate a discounted mortgage payoff (a Short Sale) with borrower’s who fell behind on their mortgage and were forced by circumstances to sell. Short Sales tend to push home prices down, but not nearly as much as would be the case if the properties are taken through foreclosure.

 

 

TWO Things You Should Never Do If you fall behind on your mortgage

DON'T MOVE OUT OF YOUR HOME UNTIL YOU HAVE ALL THE ANSWERS! 
                                             CALL ME NOW TO STALL THE FORECLOSURE NOW!

Number One

Absolutely Do Not ever deed your property to a third party without absolute confirmation your loan has been paid off.

Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction.

If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways.

What the new owner might not do is make mortgage payments, and that could become a big problem for you.

Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation.

If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic.

Number Two

Do Not do nothing.

A surprising number of people just accept what they see as the inevitable, and let the  foreclosure run its course. Don’t let it happen – the damage to your credit will follow you 7 to 10 years and the bank has the right to renew another 7 to 10.   Short Sales really do SAVE CREDIT! Here is a report on "How short sale vs foreclosure affects your credit".

Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for many years, and it will be very difficult to get another mortgage for a very long time.

 

 

Frequently Asked Questions - 
Short Sales.

bulletWhat is a Short Sale?
bulletIs a Short Sale right for me?
bulletHow late in the pre-foreclosure process can you start a short sale?
bulletIf I do a Short Sale, how much will I have to pay to sell my home?
bulletHow do I get started on a Short Sale?
bulletWhat documents are necessary to proceed with a short sale?
bulletCan I simply deed my property to someone else and avoid the hassle?
bulletWhat sort of hardship would my lender consider legitimate?
bulletI am current on my mortgage, will my lender consider a Short Sale?
bulletWhy would a mortgage company agree to accept a Short Sale?
bulletDo lenders approve all Short Sales?
bulletI have two loans, can I still do a Short Sale?
bulletMy property is in rough shape and needs work, can I still do a Short Sale?
bulletI am concerned about my credit, how will a Short Sale affect my credit?
bulletMy income problem was temporary. Do I need to sell my home?
bulletWill a lender allow the seller to make a profit on a short sale?
bulletIf a seller is in bankruptcy, will that affect the short sale of the property?
bulletWill the bank or lender require an appraisal on the home in a short sale?
bulletAre there tax implications in the short of real estate?
bulletWhy does it take so long to close a short sale?
bulletIf the client files a bankruptcy should he still complete the short sale?
bulletHow long after the short sale can the client purchase another home?
bulletWhat is a Forbearance Agreement?
 

Legal Disclosure Notice

The contents of this document are NOT legal advice or a substitute for legal advice.  This is information offered for instructional purposes only.  Please seek the assistance of a qualified legal professional for guidance with regard to issues specific to your transactions and state law in the state and county of your residence.  

 
What is a Short Sale?

A real estate Short Sale is a form of agreement between the seller of a home in the beginning stages of foreclosure and their lender, allowing the home to be sold for less than the existing loan balance outstanding. The mortgagee would accept less than the loan amount in order to avoid a foreclosure proceeding. This short sale would result in a substantially discounted purchase price for the buyer of the home. The buyer would then proceed with the purchase of the home much the same as in any conventional realty transaction.

The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees. You get your home sold, the loan(s) paid off and you avoid foreclosure.

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Is a Short Sale right for me?

Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure.

As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. 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.

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How late in the pre-foreclosure process can you start a short sale?

IN THE STATE OF FLORIDA, AT ANY TIME.  We have stopped foreclosure sales the day before the scheduled sale.  Depending on individual state law and regulations, a foreclosure can proceed as quickly as 35 days from the date the notice to the borrower is filed. For that reason, time is of the essence.

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If I do a Short Sale, how much will I have to pay to sell my home?

Nothing. It’s true, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All Real Estate commissions, title and escrow fees are paid by the lender as part of the Short Sale approval. We will include the *following clause in the contract.

"Seller’s agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller. Seller shall not be required to deposit funds to close escrow."

Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.  The only cost you may inquire is an appraisal, if the offer is rejected or countered far above market value the appraisal will enlighten the bank to today's market value of your home to get the offer on hand approved.  Call me with more questions on this matter, 239-540-4884

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How do I get started on a Short Sale?

It’s easy. You can call Marzia Rivera, Realtor at 239-540-4884 or simply fill out the Contact form and we'll get started. There is no charge to you to get started. It is as simple as contacting us and we will get to work. If you later decide you don't want to do a short sale, that is okay too.

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What documents are necessary to proceed with a short sale?

The individual documents necessary to proceed with the short sale will depend on the lender. Typically the lender will require hardship letter detailing the circumstances that require a short sale. A signed, valid purchase and sales contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender. There will be additional requests for more detailed information on the financial condition of the seller, ie; pay check stubs, bank statements, tax returns, a personal financial statement (monthly budget) assessment, amongst other things.

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Can I simply deed my property to someone else and avoid the hassle?

Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit.

Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property.

Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.

Don't Give Up Control Of Your Property

Don't give up control of your property! This point is so important we are going to repeat it 

Don’t give up control of your property.

Unless the proposal you are considering includes the buyer formally assuming your loan (most mortgage loans are not assumable) or paying your loan off, Don’t Do it! If you deed your property to someone else, you effectively and legally give up control of the property.

If your loan is not paid off or formally assumed and you deed your property to someone, not only do you give up control but you are still fully liable for the mortgage. If the person to whom you deed the property defaults on the mortgage, the credit damage is yours.

If your circumstances are such that you feel you need to deed your property to someone just to end the stress, have an attorney review the documents; including the deed. You need to fully understand what legal rights and obligations are created by the contract used to outline the transfer of ownership

 

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What sort of hardship would my lender consider legitimate?

To some extent, that will depend upon the mortgage company considering the Short Sale request. Generally, so 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. 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.

bulletFamily illness or injury
bulletIllness or injury in the extended family – particularly if it forces relocation
bulletJob relocation when the property is equity deficient
bulletJob loss or significant income loss
bulletDivorce or split of domestic partners
bulletAdjustment in mortgage payment or unforeseen increase in living expenses
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I am current on my mortgage, will my lender consider a Short Sale?

The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current. Call Marzia Rivera, 239-540-4884

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Why would a mortgage company agree to accept a Short Sale?

There are actually several reasons why a mortgage company would approve a Short Sale payoff, including the following;

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.

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. If mortgages perform poorly after they are sold it could impact the lender's ability to sell their loans on the secondary market. A successful Short Sale gets the loan payoff resolved quickly.

Asset Management Expenses- If a lender acquires a property through foreclosure, the property will be managed until it is repaired and resold. It is expensive to manage real property assets - homes – spread throughout the region, the state and possibly even the nation. Keeping properties maintained, keeping utilities on, making repairs and the administrative costs attached to these activities are all costs the lender would prefer to avoid. A successful Short Sale eliminates most of these costs

Reserve Requirement- Delinquent and non-performing loans place another burden on mortgage lenders. For all delinquent and non-performing loans lenders must set aside funds in reserve to deal with potential losses. These funds cannot be put to work generating new loan fees until the bad loans are resolved. A successful Short Sale lets the lender put more money to work.

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Do lenders approve all Short Sales?

In a word, no. That is why it is critical to work with someone that has extensive experience at getting Short Sales approved.  Marzia has this experience and keeps an eye on your case file so we don't loose your home at the Court House Auction

From the presentation of the Short Sale package to the lender to working with the lenders Loss Mitigations Department, we know how to keep the file moving towards approval.

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I have two loans, can I still do a Short Sale?

Yes. We can work with both lenders (many times the same lender hold the 1st and the 2nd loans) to put together a Short Sale transaction. Even if the value of your home is below the balance of the 1st mortgage, we can normally get the two lenders to cooperate.

In the end, neither lender wants to own another home through foreclosure.

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My property is in rough shape and needs work, can I still do a Short Sale?

Absolutely. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.

Aside from expense of completing the work, lenders are simply not set up to get the work done. They are in the loan business, not the fix- it business.

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I am concerned about my credit, how will 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. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit.

While it is up to the individual lender to decide what to report, what often happens is the loan will report as "paid" on their credit report. While that is good news, the bad news is that there will likely be a reference that says "settled for less than originally owed" or something similar. The credit scores will recover faster, with a loan “settled for less than was owed” than it will with a completed foreclosure. It is certainly more advantageous to have the short sale referenced than to have a foreclosure on their credit report.

By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.

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My income problem was temporary. Do I need to sell my home?

You may be able to keep your home. You need to convince your mortgage company of two things:

The problem that caused the mortgage payment disruption was beyond your control – illness, injury, temporary disability or forced job change are a few examples

You are now solidly in a position to stay current on your mortgage payments and make some progress towards making up the delinquent amount.

We can help. Get our Free Guide:

Getting lender approval on a Forbearance or Loan Modification Agreement

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Will a lender allow the seller to make a profit on a short sale?

By the nature of the transaction, the seller is not going to make a profit on the short sale. They may have extracted equity from a previous refinance of the home, but their current loan balance will be higher than the selling price of the home.

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If a seller is in bankruptcy, will that affect the short sale of the property?

Absolutely, as most lender would not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. Negotiating a short sale between the parties is considered a collection activity and such a negotiation is prohibited in bankruptcy.

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Will the bank or lender require an appraisal on the home in a short sale?

Most lenders may require that a full appraisal be completed on the home, the Seller is not required to submit one in the short sale package. The only reason it will be advantages for You, the Seller to pay for an appraisal is when the bank denies or counters on offer that we feel is at market value.  We must then prove to the bank that it is in their best interest to accept this offer.  The lender almost always request a BPO (brokers price opinion). The lender will need some formal assessment of the value of the home in order to make a decision as to accept or reject the short sale offer.

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Are there tax implications in the short of real estate?

Much like the issue of credit reporting, the circumstances are individual to the lender. As a short sale represents a loss for the lender, they can report the amount lost a debt forgiveness to the seller. If a formal tax form 1099 is filed, the seller may be responsible for paying taxes on the amount of debt forgiveness.   As we all know the sale is a loss to the Seller you will need a good accountant to verify your loss to the IRS so there are no taxes.

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Why does it take so long to close a short sale?

A normal real estate transaction can close at will once the contract is “four cornered” or that all signatures are affixed and there has been a meeting of the minds. In the short sale, all agreements are “subject to lien holder approval”. Since the seller is requesting a discounted payoff from the lien holder (Investor) all parties must allow the lien holder to complete an evaluation to determine the value of the home and determine if the loss is justifiable. The lender wants to mitigate his losses and so the process of evaluation must be completed before approval is granted. This process can delay closing for several months.

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If the client files a bankruptcy should he still complete the short sale?

YES, We request permission from the Trustee.  One of the main goals in the completion of the short sale is to minimize the damage to the credit of the individual. It is true that a Bankruptcy is disastrous to ones credit. Adding a foreclosure is financial suicide. Why afflict the client with both. There are methods available to have the home released from the assets included in the bankruptcy allowing the agent to complete the sale.

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How long after the short sale can the client purchase another home?

The client’s ability to purchase a new home is dependent upon several factors. Credit is only one of the factors.  A lender is most interested in the borrower’s ability to repay the loan. If the problems that led to the Short sale are behind and there are at least twelve months of good credit with three or more credit accounts, he should be able to purchase with minimal down payment at a competitive interest rate.

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What is a Forbearance Agreement?

A Forbearance Agreement is a written agreement with your mortgage company in which you arrange to keep your home. The agreement will normally include two primary elements:

  1. The borrower’s promise to remain current on the mortgage going forward
    2.   Some plan for making up the delinquent interest and other charges. It may mean making 
          additional payments to the mortgage company or the delinquent amount could be added to the 
          loan to be paid later.

A borrower who is willing but unable to make payments, and who does not qualify for a deferment, may request forbearance from the lender. Forbearance allows payments to stop temporarily or decrease in amount for a specific length of time. The lender may grant forbearance of principal, interest or both. The borrower is always responsible for repayment of accrued interest charges. The borrower can make interest-only payments, or the interest will be capitalized (added on to the principal).

Unlike deferment, forbearance is not an entitlement. It is something the lender may choose to do for the borrower if the borrower is sincere in meeting his/her loan obligation and if the borrower's circumstances indicate forbearance would be helpful. Forbearances are processed for a maximum of twelve months. Forbearance will not eliminate any prior derogatory credit history.

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Frequently Asked Questions - Foreclosures.

bulletHow Fast Can A Foreclosure Happen?
bulletHow Can I Stop The Foreclosure?
bulletWhat Options Do I Have To Avoid Foreclosure?
bulletIf My Lender Forecloses, Can They Come After Me For The Loss?
bulletCan I Just Deed My Property To Someone And Avoid Foreclosure?
bulletWhat will a Foreclosure do to my credit?
bulletWhat does a Notice of Default mean?
bulletCan I try a Forbearance Agreement to avoid Foreclosure?
bulletI Have Heard Of Foreclosure Scams, What Should I Look For?
bulletWill A Short Sale Stop A Foreclosure?
bulletIf My Lender Has Started A Foreclosure, Can I Still Sell My Property?
bulletShould I speak with my lender when they call?
How Fast Can A Foreclosure Happen?

In Florida, a foreclosure can be completed in less than six months from the time the loan becomes delinquent. The mortgage company can record a Notice of Default (Lis Pendens), the first step in the foreclosure process as soon as the loan is three months delinquent. Typically, the first indication a homeowner gets that a foreclosure has commenced is notification of the Notice of Default.

Once the Notice of Default has been recorded, the foreclosure can be completed in less than four to six months.

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How Can I Stop The Foreclosure? 
Contact Marzia@CarneyProperties.com

The best way to stop the foreclosure is to bring the loan current. If that is not possible we can stall the loan while the short sale is being processed.  To stall the loan list your property for sale in the MLS with Marzia Rivera, Realtor 239-540-4884.   If you attempt to cure the loan you would need to pay all delinquent amounts as well as the costs and fees incurred by the mortgage company to file and process the foreclosure.

Many borrowers are not able to bring the loan current and are forced to look at other alternatives to avoid foreclosure. Even if you are well into the foreclosure process, most lenders are willing to grant you additional time to remedy the situation if they believe it is reasonably likely they can avoid acquiring your property through foreclosure.

Among the alternatives the lender might be receptive to:

Get the property sold so you can save your equity.

If you don’t have equity, cooperate in a Short Sale and accept a discounted payoff as “full payment” on the loan.

A forbearance agreement in which you agree to both stay current on the loan going forward and to a schedule of repayment on delinquent amounts.

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What Options Do I Have To Avoid Foreclosure?

There are several things you can do to avoid foreclosure. It is usually best to let your lender know, right away, that you intend to solve the problem so they won’t have to get the property in foreclosure.

Here are some of your options:

bullet

Sell Your Property

bullet

Refinance

bullet

Negotiate a Forbearance Agreement

bullet

Do Nothing

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If My Lender Forecloses, Can They Come After Me For The Loss?

In order for your lender to recover losses incurred on your mortgage as a result of foreclosure, the lender would need to do a Judicial foreclosure. While, theoretically a lender could pursue a deficiency judgment through a Judicial Foreclosure on some mortgages, it almost never happens in Florida.

The lender is normally left with the proceeds generated at the Courthouse Steps Sale or from a sale after acquiring the property at the Courthouse Sale. This is another reason why lenders would prefer to work with the homeowner to solve the problem and avoid getting the property through foreclosure.

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Can I Just Deed My Property To Someone And Avoid Foreclosure?

Deeding your property to a third party does not eliminate your obligations related to the loan. Unless the mortgage is paid off when you deed the property, you will almost certainly remain as the party primarily responsible for the repayment of the loan. If the lender eventually forecloses, it will be on your credit record.

If you deed your property to a third party you also give up control of the property. It is nearly always a bad idea to simply deed your property to a third party.

Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.

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What will a Foreclosure do to my credit?

By almost any measure a completed foreclosure is the most damaging event your credit status can encounter – worse than bankruptcy. A foreclosure on your credit record will negatively impact your ability to borrow money for years.

For most people, it is well worth the time and effort to solve the problem before the foreclosure is done.

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What does a Notice of Default mean?

If a Notice of Default has been recorded against your property it means your lender has started the formal foreclosure process. In Florida, a borrower must be two months delinquent before a lender can commence a foreclosure action by recording a Notice of Default.

A borrower has over three months from the recording of the Notice of Default to work something out with their lender and avoid the completion of the foreclosure.

Once the Notice of Default has been recorded, it is important to act to avoid losing the property and having a foreclosure on your record.

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Can I try a Forbearance Agreement to avoid Foreclosure?

Yes, you can and you should look at a Forbearance Agreement as an option to avoid foreclosure.

FORBEARANCE AGREEMENT – An agreement between a mortgage company and a borrower in which the borrower promises to stay current on the mortgage going forward and agrees to a repayment plan for delinquent payments and costs and fees associated with the foreclosure action. A Forbearance Agreement is a tool that allows the borrower to keep the property.

The lender will expect you to show that the delinquency was due to circumstances out of your control (injury, illness, job loss) and that the financial difficulties have been corrected.

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I Have Heard Of Foreclosure Scams, What Should I Look For?

Unfortunately there are quite a few people that might try and take advantage of your temporary misfortune. These people will try and convince you that they can provide a quick and easy solution to your mortgage problem. As a general rule, if it seems too good to be true, it usually is.

Here are a few examples of the scams you could encounter:

You need to sell your property fast or you will be ruined.

If you have equity, these guys want it by providing fast cash, they solve your problem and they get your equity. On occasion they offer a small amount of money to you – which is normally a signal they are getting lots of your equity.  If you are truly in a short sale scenario then you have no equity.

Sign the deed to the property to us and we will take care of everything.

Sometimes called the “Bailout” scam, the investor tells the homeowner that he will be allowed to stay in the home and pay “rent” to the investor until a long term solution can be worked out. Once the owner signs the deed to the property over to the investor, big trouble usually follows. If the investor has the deed, the investor has control.

Here is the big kicker – the homeowner who signed over the deed is still responsible for the loan. The investor nearly never makes the mortgage payments and the homeowner gets hit with the foreclosure.

For a consulting fee, I will work with your lender to find a solution.

Your lender will work with you directly if you want to make arrangements to make up past payments and keep your property. This would normally involve a Forbearance Agreement.

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Will A Short Sale Stop A Foreclosure?

While the Short Sale itself does not stop the foreclosure, lenders normally work with a homeowner and delay the foreclosure if necessary, if they receive a legitimate Short Sale proposal. The key here is to submit a complete, well organized, Short Sale proposal.

The lender does not want your property, and would rather resolve the situation before the foreclosure is complete.

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If My Lender Has Started A Foreclosure, Can I Still Sell My Property?

Absolutely, In fact, your lender would rather you sell the property than allow the foreclosure to continue.

Your lender does not want to take your property through foreclosure. Even if you have no equity in the property, the lender wants to find a solution.

This is precisely why lenders agree to a Short Sale and accept a discounted payoff to fully satisfy the loan. In a Short Sale, the lender in nearly all cases pays all the closing costs – including title fees, escrow fees and the real estate commission.

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Should I speak with my lender when they call?

It is best that you not avoid calls or letters from your mortgage company, particularly if a foreclosure is pending. Your mortgage company does not want to take your property through foreclosure. The mortgage company would rather look for options to avoid foreclosure.

When speaking with your mortgage company, be honest about your circumstances and listen for them to possibly suggest options. The mortgage company knows the best way for them to limit losses on a delinquent mortgage is to work with the homeowner.

Be sure to keep notes of all conversations you have with the mortgage company including dates and times of calls, the name of the representative with whom you spoke and the details of the conversation.

 

Short Sale Terms

Advertising- (or Publishing)

A copy of the Notice of Foreclosure Sale must be published once a week for four weeks.

Bankruptcy-Chapter 7

Often called a straight bankruptcy-involves the liquidation of all non-exempt by the bankruptcy trustee, who in turn distributes the proceeds to qualified creditors. All dischargeable debts are discharged and the person(s) filing receive a ‘fresh start’.

Bankruptcy-Chapter 13

Often called a debt reorganization. A Chapter 13 Bankruptcy is generally appropriate for those individuals who have non-exempt property they wish to retain and who have enough income to reasonably pay the reorganized debt after covering reasonable living expenses.

Beneficiary

The beneficiary in a foreclosure context is generally the mortgage lender. Frequently referred to as the ‘Benny’.

Deed in Lieu of Foreclosure

The voluntary surrender of property by an owner/borrower to a lien holder that eliminates the need to continue foreclosure action by the lien holder. The lien holder can refuse to accept the Deed in Lieu and file a Notice of Non Acceptance with the County Recorder.

Discounted Payoff

The payoff of a mortgage loan where the lender accepts an amount less than the actual amount owed to payoff the loan.

Equity Deficient

A property is Equity Deficient when, if sold, sales proceeds would not fully pay off existing mortgage debt.

Forbearance Agreement

An agreement between a mortgage holder and a borrower that lays out a specific loan payment plan and puts a stop on the foreclosure action so long as the borrower meets the terms of the agreement. The payment plan includes provisions for repayment to the mortgage holder of all delinquent interest and fees and could include extending the life of the mortgage beyond it's original term. A Forbearance Agreement is a tool that allows the borrower to keep the property.

Judicial Foreclosure

A foreclosure action conducted through the courts instead of through a foreclosure trustee.

Junior Liens

A lien, usually a mortgage loan, that is subordinate to a Senior Lien, usually a first mortgage. Lien priority is generally established by order of recordation . NOTE: if you refinance a 1st mortgage on a property with a 2nd mortgage already in place the new 1st mortgage holder will require a subordination agreement from Junior Lien holders to legally establish the new mortgage holder as 1st or Senior Position.

LIBOR (London Interbank Offered Rate)

The interest rate charged among banks for short-term Eurodollars loans - LIBOR is a very common index for adjustable rate mortgages (ARM).

Loss Mitigation

Home mortgage lenders look to limit losses on delinquent mortgages by working out solutions with borrowers through their Loss Mitigation Departments.

Mailing

A copy of the Notice of Trustee’s Sale must be mailed (certified and first class) at least 20 days before the foreclosure sale to the borrower and to anyone who was entitled to receive a copy of the Notice of Default and Secretary of State and IRS, if applicable.

NOD

Short for Notice Of Default.

Notice of Default

An official notice filed and recorded by a designated trustee at the request of a lender indicating lender has commenced foreclosure action.

Notice of Trustee Sale

An official notice that is posted, mailed, published/advertised and recorded by trustee at the direction of lender indicating lender’s intention to sell the property at public auction. The notice includes a specific date, time and location.

Posting

A copy of the notice of sale must be posted in a conspicuous place on the property to be sold at least twenty days before the sale. Also, a copy of the notice must be posted at one public place in the city where the property is to be sold at least twenty days before the sale.

Postponement

Trustee Sales may be postponed by the first at the direction of the lien holder. Notice may be given in advance or at the time and location specified for the intended sale.

Private Mortgage Insurance (PMI)

A policy of insurance paid for by the borrower to protect the lender in the event the borrower defaults on the mortgage. Typically PMI is required by the mortgage holder when the down payment is less than 20% of the purchase price.

Qualifying Funds

In order to bid at a Trustee Sale bidder must have qualifying funds available at the sale. Qualifying funds are cash or a cashiers check(s) drawn by a State or National Bank, a check(s) drawn by a State or Federal Credit Union or check drawn by a State or Federal Savings and Loan Association, savings association or savings bank specified in section 5102 or the Financial Code and authorized to do business in the State of Florida.

REO

Short for Real Estate Owned. When a mortgage lender acquires a property, typically through foreclosure, it becomes real estate owned – or REO.

Reinstatement

To bring the loan current. Borrower may reinstate up to five (5) business days before foreclosure sale.

Short Sale

The sale of a home which is completed through negotiation with the existing lender(s) in which the lender(s) agrees to accept less than the full amount owed to satisfy the debt allowing the debt to be ‘paid off’, (short).

1099-C

IRS Form 1099-c is issued by those canceling all of part of a debt to the person receiving debt relief.

Note: The cancelled debt may not need to be reported as income. For more on a 1099-c see below

 

IRS Form 1099-C: Cancellation of Debt

Overview

This document is designed to provide information and instruction for individuals who

have received a Cancellation of Debt (COD) IRS Form 1099-C.

If you have reached a compromise or settlement with a creditor agreeing to release you from any further obligations regarding the repayment of a debt, a credit card debt for example, your responsibilities may not end at this point. Your creditor may “write off” all or part of the debt it claims that you owe, and report it as a tax loss to the IRS using a Form1099-C.

Because you never paid the debt-claim in full, the IRS can treat a cancellation of a debt-claim as income you have received. For example, $4,500 credit card bill in which a compromise has been reached to settle the debt for $2,500 is in theory a $2,000 personal net gain. The IRS may require you to report this as income you have received for the tax year even though you have not actually received the money.

Why did I receive a 1099-C: Cancellation of Debt form?

If you have defaulted (failed to make payments as agreed) on a debt in the past and you have either reached a compromise with a creditor to settle your debt, or the creditor has deemed the debt to be non-collectable and has stopped attempts to recover, you may receive a 1099-C form. The IRS definition of a compromise in a collection case is the discharge of indebtedness under an agreement between the creditor and the debtor to cancel the debt at less than full consideration.

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What is a 1099-C: Cancellation of Debt form?

A 1099-C form lets you know that a creditor is going to “write off” the remaining unpaid portion of your debt. An IRS 1099-C: Cancellation of Debt form is filed by a creditor to the IRS when a settlement agreement between a debtor and a creditor has been reached or when a creditor has determined that a debt will never be paid. If the debt is for $600 or more the creditor must send you, the debtor, a 1099-C in the mail by January 31st and to the IRS by February 28th of the tax year in which the debt was discharged.

What should I do after I receive a 1099-C: Cancellation of Debt form?

If you receive a 1099-C form from a creditor, you must report the amount of the canceled debt as income to the IRS even though you have not actually received the money. (The amount shown in Box 2 of the 1099-C form is the amount that must be reported as income.)

What debts are forgiven under a 1099-C: Cancellation of Debt form?

The IRS recognizes five situations where a cancelled debt does not have to be reported as income.

1. Bankruptcy – the debt was already discharged through a bankruptcy proceeding.

2. Insolvency – your total debts exceed your total assets at the time your debt was settled or deemed non-collectable.

3. Indebtedness is due to a qualified farm expense.

4. Indebtedness is due to certain real property business losses.

5. Discharge of your debt was treated as a gift. (Extremely rare)

If you are insolvent you need to explain this to the IRS in one of two ways. 1) By filling out IRS Form 982 (Can be difficult to understand): Reduction of Tax Attributes Due to Discharge of Indebtedness or 2) Attaching a detailed letter to your tax return explaining the calculation of your total debts and assets.

How do I know if I am insolvent?

You are deemed to be insolvent if your total liabilities (debts) are greater than your total assets. Completing the insolvency worksheet at the bottom of this document will help you determine if you were insolvent at the time your debt was discharged. For example, if your total liabilities are $8,000 and your total assets at the time are $6,000 you are insolvent in the amount of $2,000. To determine the value of your assets use the fair market value rather than what you paid for them or what you think they are worth.

If you are insolvent you need to explain this to the IRS in one of two ways. 1) By filling out IRS Form 982 (Can be difficult to understand): Reduction of Tax Attributes Due to

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Discharge of Indebtedness or 2) Attaching a detailed letter to your tax return explaining the calculation of your total debts and assets.

Helpful tips to avoid problems if you have received a 1099-C.

If you settle your debt for less than full consideration (paid in full) be sure to ask

the creditor if they intend to submit a 1099-C form to the IRS.

The name of the creditor may not be readily recognizable on the 1099-C form.

The creditor may have sold the debt to a third party collection agency or the name

of the parent company could be listed as the creditor.

 Look to see if the added income received from a debt cancellation will move you

into a higher tax bracket. For a taxpayer in the 35% tax bracket in 2005, a $5,000

canceled debt could cost up to $1,750 in additional income taxes.

 You cannot claim that you never received a 1099-C form in the mail. Even if you

do not receive a 1099-C form you are expected to recognize ordinary income.

 

 
IRS Form 1099-C: Cancellation of Debt Cancellation of Debt Cancellation of Debt (32 KB)

Overview
This is designed to provide information and instruction for individuals who have received a Cancellation of Debt IRS 1099-C.

If you have reached a compromise or settlement with a creditor agreeing to release you from any further obligations regarding the repayment of a debt, a credit card debt for example, your responsibilities may not end at this point.  Your creditor may “write off” all or part of the debt it claims that you owe, and report it as a tax loss to the IRS using a 1099-C. 

Because you never paid the debt-claim in full, the IRS can treat a cancellation of a debt-claim as income you have received. For example, $4,500 credit card bill in which a compromise has been reached to settle the debt for $2,500 is in theory a $2,000 personal net gain. The IRS may require you to report this as income you have received for the tax year even though you have not actually received the money.

Why did I receive a 1099-C: Cancellation of Debt form?
If you have defaulted (failed to make payments as agreed) on a debt in the past and you have either reached a compromise with a creditor to settle your debt, or the creditor has deemed the debt to be non-collectable and has stopped attempts to recover, you may receive a 1099-C form.  The IRS definition of a compromise in a collection case is the discharge of indebtedness under an agreement between the creditor and the debtor to cancel the debt at less than full consideration.

What is a 1099-C: Cancellation of Debt form?
A 1099-C form lets you know that a creditor is going to “write off” the remaining unpaid portion of your debt.  An IRS 1099-C: Cancellation of Debt form is filed by a creditor to the IRS when a settlement agreement between a debtor and a creditor has been reached or when a creditor has determined that a debt will never be paid.  If the debt is for $600 or more the creditor must send you, the debtor, a 1099-C in the mail by January 31st and to the IRS by February 28th of the tax year in which the debt was discharged. 

What should I do after I receive a 1099-C: Cancellation of Debt form?
If you receive a 1099-C form from a creditor, you must report the amount of the canceled debt as income to the IRS even though you have not actually received the money. (The amount shown in Box 2 of the 1099-C form is the amount that must be reported as income.)

What debts are forgiven under a 1099-C: Cancellation of Debt form?
The IRS recognizes five situations where a cancelled debt does not have to be reported as income.

bulletBankruptcy – the debt was already discharged through a bankruptcy proceeding.
bulletInsolvency – your total debts exceed your total assets at the time your debt was settled or deemed non-collectable.
bulletIndebtedness is due to a qualified farm expense.
bulletIndebtedness is due to certain real property business losses.
bulletDischarge of your debt was treated as a gift. (Extremely rare) 


If you are insolvent you need to explain this to the IRS in one of two ways.  1) By filling out IRS Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness or 2) Attaching a detailed letter to your tax return explaining the calculation of your total debts and assets.

How do I know if I am insolvent?
You are deemed to be insolvent if your total liabilities (debts) are greater than your total assets.  Completing the insolvency worksheet will help you determine if you were insolvent at the time your debt was discharged.  For example, if your total liabilities are $8,000 and your total assets at the time are $6,000 you are insolvent in the amount of $2,000. To determine the value of your assets use the fair market value rather than what you paid for them or what you think they are worth. 

If you are insolvent you need to explain this to the IRS in one of two ways.  1) By filling out IRS Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness or 2) Attaching a detailed letter to your tax return explaining the calculation of your total debts and assets.

Helpful tips to avoid problems if you have received a 1099-C.

bulletIf you settle your debt for less than full consideration (paid in full) be sure to ask the creditor if they intend to submit a 1099-C form to the IRS.
bulletConsider, if a debt compromise is in your best interest, or is it a smarter decision to pay the debt in full?  Failure to report added income could end up costing you in the end.
bulletThe name of the creditor may not be readily recognizable on the 1099-C form. The creditor may have sold the debt to a third party collection agency or the name of the parent company could be listed as the creditor.
bulletLook to see if the added income received from a debt cancellation will move you into a higher tax bracket. For a taxpayer in the 35% tax bracket in 2005, a $5,000 canceled debt could cost up to $1,750 in additional income taxes.
bulletYou can not claim that you never received a 1099-C form in the mail. Even if you do not receive a 1099-C form you are expected to recognize a capital gain.
bulletIMPORTANT: For individuals receiving public benefits and public housing, be sure to check if your updated income will exclude you from the benefits you are receiving

The author, Ian Agster, was a law student and summer inter at Legal Services of Northern Virginia.

Legal Terms

Creditor – A person or corporation to whom a debt is owing by another person who is the “debtor.”

Debtor – One who owes a debt to a creditor.

Write off – To cancel from accounts as a loss.

Default – To fail to pay money when it is due.

Fair Market Value – Price at which a willing seller and a willing buyer will trade.

Net Gain - An increase in the value of a capital asset.

What About My Credit?

One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years.

Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible.

Keep “necessary” Accounts Current

When deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account.

A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with.

Buying a Short Sale

If you are an investor looking for a deal that gives you instant equity, or a home buyer just looking for a good deal, buying a Short Sale may be your answer. The risks that go along with foreclosing on a property have mortgage companies looking for ways to avoid foreclosure and reduce the losses incurred when a loan goes delinquent.

A Short Sale allows the mortgage holder to limit losses on a delinquent loan and take the loan off their books. The discount a lender is usually willing to approve means the buyer gets a very good deal

Everyone Wins

It isn't often in real estate transactions that virtually all parties with a financial interest can be winners in the same transaction. A successful Short Sale is one of those rare situations where everyone wins.

The Buyer Wins by acquiring a property at below market price. While some Short Sales will be bigger bargains than others, nearly all Short Sales will represent a good deal for the buyer.

The Seller Wins by avoiding foreclosure and all the credit damage that goes along with it. The property gets sold, all the loans get paid off and the existing lender pays all the sales costs. In most cases the Seller has no out-of-pocket expenses.

The Mortgage Holder Wins by reducing the loss they absorb to get the delinquent loan off their books. Mortgage companies know that the costs associated with acquiring a property through foreclosure hit their bottom line - hard. To resell the property the mortgage company frequently needs to invest money in clean up and repairs, and they need to pay staff to manage and maintain the property as well. This is precisely why they have set up Loss Mitigation Departments to resolve delinquent mortgages before the foreclosure is complete.

Getting A Short Sale Approved

Working with lenders to get short sales approved is what we do every day. We know the importance of getting started on the right foot with the lender’s loss mitigation department. We have learned many times over that being prepared and maintaining our professionalism are critical to getting short sale approval.

The Lender Wants a Great File…

And from us that is just what they will get. We have one opportunity to impress the lender with a strong, complete and well organized file. That initial step will go a long way towards determining the lenders position on approving your file.

Lenders do not want to acquire properties through foreclosure, but they will not approve just any short sale. When your short sale file is submitted to your lender for approval we will map out a plan for approval that will have the lender feeling positive about approving the short sale.

Appeal to the Human Inside

Your short sale file will be reviewed by a living breathing human being. Someone, that can’t help but be influenced by the difficult circumstances being faced by others. We will help you outline the events that caused you to fall behind on your mortgage so that the loss mitigation representative handling your file will look for ways to give us approval.

Finding a Short Sale

Many real estate investors, as well as a large number of bargain seeking homeowners have turned to Short Sales as the best way to buy real estate at a big discount. Do a Google search and you will find literally hundreds of websites set-up to show potential buyers how to buy Short Sales.

To hear them tell it, you need only put some signs up on electric poles, respond to a few newspaper ads and send out a couple letters and you will find Short Sale properties. While these methods will work for some home buyers, most will be left wondering why they are not finding properties. Further, even when you find a good property, the seller’s financial circumstances may make getting a Short Sale approved impossible.

Why not purchase a Short Sale property that has already been qualified and has a high likelihood of lender approval? It sure can’t hurt to get information on Short Sale properties on which the file is already submitted for approval.  Check out our list of Short Sales.

Why Do Short Sales Work?

For the mortgage holder there are real advantages to getting the property sold, even at a discount, while the borrower is still in the home. The costs to maintain the property are paid by the borrower and the borrower has an incentive to keep the property in good shape.

The foreclosure process can get very unpleasant, particularly towards the end of the process. Borrowers have been known to remove built-in appliances, cabinets and plumbing fixtures on their way out.

In the end, it’s usually to the mortgage holder’s financial advantage to accept a short Sale as opposed to completing the foreclosure.

Seller Information

We specialize in the sale of homes that are equity deficient - homes with loan balances at or above the home's value.

Homeowners across the country are finding themselves faced with very difficult decisions because their mortgage balance is higher than the value of their home. If you find that you need to sell your home and your loan balance is too high, what do you do?

That's where we can help!

We have helped hundreds of homeowners by working out a solution with the mortgage holder that allows the home to be sold.

The Benefits

bulletYour home gets sold and the mortgage is fully paid off. The mortgage lender accepts a discounted payoff.

bulletYou have very little out-of-pocket costs as the mortgage holder pays virtually all 
sales costs including title and escrow, commission, and approved property repairs.

bulletYour credit record is protected from a foreclosure.

bulletYou can move forward with your life without having to worry about your house 
and your mortgage.

 

Keep Your Home Do Not Pay Upfront Fees
Getting A Short Sale Approved Get Professional Representation
Don't Give Up Control of Your Property When You Want to Sell Quickly

Q & A for this Short Sale PACKAGE

Why use Marzia Rivera, Realtor?

Marzia Rivera's objective is to discount the debt owed to the lender(s) in order to purchase the property directly from the homeowner. Our Short Sale TEAM is constantly networking with other experts in the industry to keep up to speed with the changes in the real estate market.

Does a short sale cost me any money?

Most times nothing at all but the bank may require a sum to be settle with the owner, this will depend on the bank and your financial statement. It could be as little as an appraisal.  At times we need to prove the value to the bank to finalize the negotiations and request the owner pay for an appraisal.  We put all other fees and commissions on the HUD for the mortgage holder to pay, all commissions are negotiated with the bank and paid upon closing.  Ask for details.

How long does the process take?

The Short Sales process contains many phases and can be a lengthy process. The time can vary depending on the cooperativeness of the Homeowner and the Mortgage Lender(s). Typically, short sales will take up to several months from the time Marzia receives the completed short sale package to the closure date. As complicated as it is, it is important to be patient during this process

How much work does it take from me?

Homeowner's involvement is needed only to carry out the following actions:

  1.   To obtain the required short sale documents and paperwork to give to the Real Estate Agent

   2.  If all documents are received and upon Lender(s) approval on the short sale—Homeowner    
        to close on the
proposed date  

Why pursue a Short Sale?

A result of a successful short sale is that the homeowner can avoid a foreclosure on his/her credit report.  Marzia Rivera, will get paid directly from the lender.  If the homeowner can bring his/her mortgage loan current or sell the house without a short sale, we encourages the homeowner to do so.  Short Sales are used as a way to avoid foreclosure when all other alternatives have been exhausted.

I’m ready to get started, what’s the process?

bulletContact Marzia Rivera at 239-540-4884 to schedule a meeting to discuss the process that pertains to your needs, deliver the necessary paperwork and the list of items you will need to provide us to proceed.
bulletThen carefully read the ALL the pages and gather ALL the necessary paperwork. 
bulletHave a spare key ready for the agent – the agent will put a key in a lock box so that an appraiser can gain access.  You (homeowner) will be notified before any appraisals are done.   
bulletYou will set up an appointment with your agent to bring in ALL the necessary paperwork requested and have the opportunity to ask any other questions.   
bulletIf an agent has not contacted you within 24 hours, call or email MarziaRivera@yahoo.com 239-540-4884

You Agent will be your primary contact throughout the entire short sale process.  Please contact your agent or contact Marzia to become your Agent to keep you updated and answer your questions throughout the short sale process. 239-540-4884.

Hopefully this information helps.  with Marzia Rivera as your Agent, I am here to help. Even though we are not attorneys, we will do what we can to help you understand the process and what the bank is doing.  

A Short Sale does not cost the homeowner money, call us to stall the foreclosure process and to begin the short sale.  We have investors waiting to review your property, offer to purchase, then we negotiate with the banks.  Call or email Marzia

Get Professional Representation

Getting a short sale approved by the existing lender is a multi-step process that requires patience, persistence and a lot of experience. If you decide that a short sale is the best answer for your situation, have a qualified professional represent you

Let us speak for you

In order to get a short sale approved your mortgage holder will require that you provide a  personal financial information and documentation. 

Professional Representation – Free to you

Because the mortgage holder pays the real estate commission, professional representation is free to you. In effect, the mortgage holder pays the real estate fees, along with most other sales costs, so the short sale file can be handled by a professional.

The mortgage holder knows that it is in their best interest as well as that of the borrower to the have short sale file put together properly from the beginning, by a professional that does not have a conflict of interest.   Call Marzia Rivera Today, 239-540-4884

 Marzia Rivera, Broker
Southern World Class Realty
  239-540-4884 fax 888-540-4884

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Selling Your Property Quickly

We can assist in finding a buyer for your property.

With that said, we understand that some property owners would prefer just to get a transaction done quickly and with a minimum amount of hassle.

If you feel that your best option is to sell your property quickly, in its current condition, for all cash and with little difficulties, we have a list of wholesale investors to purchase your property

bulletThe Wholesale Investor buys property for themselves and use their own money. No loan.

bulletThe Wholesale Investor can make the transaction simpler and faster.

bulletThe Wholesale Investor buys property as-is without requiring the seller to make repairs. They will close escrow with your tenant still in the property – even if it’s a bad tenant.

bulletThe Wholesale Investor won’t try to scare you. They tell you they are buying wholesale to make a profit and they will be the first one to admit their price will leave room for them to make money.

Direct 239-540-4884  Fax 888-540-4884

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20% off the first year of New SEV Plans!      

Great Links Worth Checking Out!

* LAST CALL VACATION SPECIAL *
Great Deals if you are traveling within 45 days!

Southern World Class Reatly
Let us help You find Your Place in the Sun

CourtAuctionMLS
Savvy Buyers tech tool to keep your mouse on the pulse of the market


 Property Management, Home Watch and Vacation Rentals
Are you and Owner looking to Lease your Home? Or a Tenant? 

Vacation Homes and Condo Resorts all Gulf Access or Gulf Views
Paradise Property Management, Home Watch, Vacation Rentals

Orlando Florida Vacation Resorts, try New Years at Disney/Universal
Christmas and News Years in Orlando, Florida, SUMMER BAY RESORT

Catch The Big One!  Back Bay and Offshore Fishing Charters SWFL
Back Bays and Off Shore Charters

Tarpon Point River Cruise Boat Rentals and Charters
Party with 40 of your closest friends, Sunset Weddings, 
Receptions, Birthday Party, Island Hopping, Lunch Trips


 

DIRECT EMAIL and PHONE to 
Marzia Rivera, Realtor


MarziaRivera@239-540-4884.com

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This page was last updated on 04/20/14.