Is short selling my home really an option?

2 May

Is a short sale right for me

Did you ever think you would have to move? Did you ever think that you would be forced to make a decision on whether to leave, or be forced out? According to Greater Las Vegas Association of Realtors, GLVAR, in March of 2013, 33.3 percent of homes sold in Southern Nevada were sold as a Short Sale. Don’t think you’re alone if you can’t afford your payments any longer. You have options.
It really is not your fault that the Southern Nevada market is the way it is! You didn’t control the lending. You didn’t control the economy and what happened. You do, however, control what happens from this point forward. You really are NOT alone! When the market “crashed”, Nevada was really hit the hardest. People paid $300,000 for a home that today, has a market worth of $150,000.  It makes all the sense in the world to cut your losses, short sell your home, walk away and get a fresh start in a few years.
Too many people don’t want to stand up, face the fact that they made a mistake, an unforeseeable mistake at that. However, why don’t you be part of the ones who look at themselves and say “You know, you’re right? I made a mistake and I want to fix it. I want to short sell my home and start over fresh. I want to make a difference and control where my life is going.”
You are better off selling your home through a short sale and buying a new home down the road, then you are to continue to pay on your home and not be able to afford it OR worse yet, stop paying on it and foreclose and be forced out. Ask yourself this question and you will find the answer to if a Short Sale is right for you. Would you rather spend your entire worth savings, 401k and everything you have worked hard for your entire life OR would you rather sell your home, start over fresh and be able to spend the things you have saved for? That’s the question you must answer yourself!
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Short Sale Timeline

2 May

Short Sale Timeline 

The short sale process is complicated and must be done right! If it is not done right, the result will NOT work out in your best interest as the homeowner. For this reason, many banks require that the homeowner be represented by a licensed real estate agent. The majority of the tasks performed throughout the short sale process will be completed by the listing agent.

The Short Sale Timeline is a general illustration of the stages involved in completing a short sale and the number of days each stage usually takes. Short sale timelines differ between banks and do not always follow the process illustrated on the diagram.  While few banks will ever process short sales in the same amount of time, most banks will still adhere to the same stages illustrated in the diagram with very few exceptions or revisions.

Short Sales: Step-by-Step

The following will highlight what happens at each stage of the Short Sale process and what might be expected of the homeowner:

  1. The listing agent sends the lender a 3rd Party Authorization Form. The form authorizes the agent to receive information on the mortgage account on the homeowner’s behalf.
  2. The homeowner will prepare a list of documents for their agent to submit to the bank in order for the short sale to be reviewed. This may include income tax returns, bank statements, paycheck stubs, a hardship letter, and other financial disclosures.
  3. Once an offer is received from a pre-qualified buyer, the offer is sent to the lender by the listing agent along with the homeowner’s financial and other documents. This is called a “short sale package” and is referred to at the bank as a “file”.
  4. The file is assigned to a bank negotiator.
  5. The bank sends an independent licensed real estate broker to the homeowner’s property to perform a valuation called a Broker’s Price Opinion (BPO). This is not typically a full appraisal, but it is performed to give the bank a general snapshot of the property value and overall condition.
  6. The BPO agent sends the valuation to the lender.
  7. The short sale package and BPO are reviewed by the bank and the investor who actually owns the mortgage.
  8. The bank decides to either approve or reject the homeowner’s request for a short sale.
  9. In the case of an approval, a written acceptance is sent to the homeowner for review and the buyer initiates their mortgage-loan approval process.
  10. The buyer performs their inspections and they close on the property.

No two short sales are the same as the short sale process varies from situation to situation. Some move rather quickly, while some take some time to complete. It is my goal to do everything in my power to make sure your short sale doesn’t last more than 120 days. Thinking about a short sale in Las Vegas? I will be happy to answer any questions you have or meet with you for a no pressure, no obligation consultation in the privacy of your home.

Contact me at www.marypreheimgroup.com  (702) 900-6279 or  MaryPreheim@RealtyExecutives.com

What are my alternatives when I’m facing a foreclosure?

22 Apr

foreclosure-sign

Have you ever thought about what it would be like to come home one day and not be able to get into your OWN home? Have you worried about how much longer you have before you come home and see the FORECLOSED sign on your door?  According to property tracking service RealtyTrac, 1 in every 150 homes in Las Vegas, NV is facing foreclosure as of March 2013. That ranks 29th in the Nations Metro Areas. Do you know your rights as a homeowner and the process that foreclosures go through? Wouldn’t you rather walk out on your own terms and not be forced out?

What are my alternatives when I’m facing foreclosure?

1.     Do nothing- You can completely ignore all of the notices the bank has sent to you and wait for your property to foreclose.

2.     Payoff/Refinance-To qualify, you would need to not be upside down on your property and need to have NEVER been late on your payments.

3.     Reinstatement- Get caught up on all of your mortgage payments and bring it to current status

4.     Loan modification – Nationally, we have a 62% fail rate on all loan modifications

5.     Forbearance agreement – When the bank makes an agreement with you on all of your back payments to make your loan current. The negative to doing this is they will add late fees and interest to the end of your loan, increasing the principle balance or they will break them up over a long period of time and can report you late during that period of time.

6.     Partial claim – When you take out another loan to catch up on your back payments.

7.     Deed in Lieu – Bank will consider this option but they want to see that you have tried a loan modification and short sale, and failed at both, before doing a deed in lieu.

8.     Bankruptcy- There are two types, one is a chapter 7, the other is chapter 13.  With a chapter 7, you are getting rid of all of your debt, including the house. In chapter 7, the bank will still have to foreclose or do a short sale.  With a chapter 13, you are setting up a payment plan and catching up on your back payments and keeping the house.

9.     Sale or short sale- You can make an agreement with the bank to settle your debt for less than what is owed. You can sell it at market value and not spend a penny from your pocket! You will need a real estate professional to assist you with a short sale as there is A LOT of paperwork that needs to be filed in detail with the banks.

Now you know the nine alternatives you have in order to keep your house. Whether you chose to make payments, short sale or simply just walk away, you are the one who has the decision to make. I just hope you consider all of your options when making this decision. It really is up to you, as the homeowner, on what you do next.

 

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Get all of your short sale answers here!

22 Apr

  short sale1

As a home owner, you might be faced with this question, what is the “right” thing to do if I am missing mortgage payments? In order to answer that, you need to educate yourself on exactly what is a short sale? What can I do to fix my situation? Do I walk away and let my house foreclose or do I ask for help? What happens to my credit if I do a short sale? Continue reading and find the answers to all of your questions as more. Just know, you are not alone.

What is a Short Sale?

A short sale is when you, as a homeowner, makes an agreement with your mortgage lender of your property, for an amount that is less than what you owe.  They will agree to terms equal to market value. It is a shortage to what is owed.

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

Number one reason being they can net more through a short sale than they can a foreclosure, simply due to the costs that are incurred during the foreclosure process and the maintenance of the property needed after they own the property. Second, there are legal concerns. Mortgage lenders have come over a lot of legal pressure to work with homeowners to come to an agreement or resolve if they are unable to meet their mortgage obligation. A short sale is a way to show they are working with the homeowners. Wall Street is also watching them as mortgage lenders rely heavily on their abilities to package and sell loans on the secondary market. If those don’t perform well, they are not able to sell those and bring in additional income.  They also have a reserve requirement in the amount of money they can loan out. If that money is tied up by loans that are not making them any profit, money, they are limited on being able to loan more money, thus, they would want to short sale those off and move it to the pool where they would be able to loan off more money.

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

Deeding your property to another person will NOT release you from the mortgage debt. Your name being off of title will only release your name from the title liabilities and not the debt liabilities. It will NOT avoid foreclosure for you.

What sort of hardship would my lender consider legitimate?

As long as it is real and the lender feels that there is probability of delinquency on the mortgage then they will consider it a legitimate hardship, including but not limited to, death, illness, divorce, loss of job, loss of income, unemployment and damage to your property.

How will a short sale affect my credit?

It really does vary and is a case by case basis. The short sale isn’t what really negatively affects your credit, it is continually being late on your mortgage payment that does the most damage. Being late time and time again is what affects your credit every month. A foreclosure could completely collapse and deteriorate your credit entirely.

Can I consider a Short Sale if my loan payments are current?

Yes, you absolutely can. You don’t have to be late on your mortgage to consider and complete a Short Sale. However, there are underlying investors that own your mortgage note that have guidelines that supersede that. You will need to check with your specific investor before considering the Short Sale for your mortgage.

Why would I work with a Realtor during my Short Sale?

A licensed professional is FREE! There is NO COST to you so why wouldn’t you? You will have questions throughout the whole process so you will need to have someone who is licensed and a professional in the Real Estate industry help you through. A short sale is a TEDIOUS and step by step process which includes many follow-ups that needs to be completed.

Will the lender pursue a deficiency judgment against me?

A deficiency is a shortage between what is owed and what you sell it for. If you owe $200,000 on your property and you sell it for $100,000, the deficiency will be the $100,000 shortage between which is owed and what you sold it for. When you negotiate your short sale, the bank will stipulate on their approval letter whether they will or will not pursue that deficiency. They will either reserve the right or give you what is called a full satisfaction and release of the debt.  We try to negotiate a full satisfaction and release on all of our short sales so you won’t have to worry about that deficiency judgment.

Weigh your options. Know there are other options out there other than foreclosing on your house and losing everything. You can short sale and walk away and buy a house again. There’s no black mark against you, nothing negative to say! Do what’s best for you and your family but know your options before making a decision!

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What are the advantages to short selling my property?

22 Apr

short sale

Sit down and ask yourself, what are the true advantages to a short sale?  If you give me a few minutes of your time, I will give them to you. Prepare yourself the best way you can and give yourself the knowledge needed to make an educated and best decision for yourself!

What are the advantages to a short sale?

1.     Avoid foreclosure on your credit.

2.     Avoid potential bankruptcy, which is something you NEVER want!

3.     Avoid being evicted from your home. Who wants to be told to leave from their home?

4.     There’s less potential for a tax liability.

5.     It’s much easier to repair your credit after a short sale, which shortens the time before you qualify for new ownership.

6.     You can get out from underneath a depreciating asset. Who likes to be upside down in their home?

7.     Lenders customarily pay all closing costs in a short sale transaction, including commissions so there is ZERO cost to you!

8.     You can potentially avoid debt liability and deficiency because we can negotiate terms with the bank that work for YOU and the bank.

My hope is that you will weigh your options and really consider other options when you are facing foreclosure. You don’t have to be forced out. You don’t have to be told you need to leave. You can leave on your own terms, live to fight another day and make sure that you want to do exactly what is best for you and your family. I hope that by reading this it has opened your eyes to the alternatives you have when facing such a situation as foreclosure. Whether you short sale your property or you foreclose on it, educate yourself, know your rights and know what to expect. But most of all, make the decision yourself.

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10 May

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