WHAT IS A SHORT SALE ?

(Typical Realtors can NOT help you without this type of service)

HERE IS AN EXAMPLE:

A property is about to go in Foreclosure, ...or already is
...but it is upside/down. 

Meaning that the sales price is NOT sufficient to cover back interest payments owed, closing costs, fees, back taxes, current taxes, forced placed insurances (if applicable), real estate commission (if applicable), etc.

The homeowner, lists the property and hopes that they can sell it for just enough to cover the current balance + closing costs & fees + real estate commissions, if applicable.

The homeowner was not aware that his mortgage balances (payoffs) went up the roof when they added:

• Back due mortgage payments (interest) from all the months not having been paid;
• Real Estate taxes not paid and/or advance by the lender (escrow shortage);
• Forced placed homeowners and/or flood insurance;
• Attorney fees (foreclosure process)
• and more...
  
  $250,000 = Current Loan Balance + Payments Owed + Closing Costs & Fees, etc.
  $195,000 = Current Value         
  $  55,000 = Homeowner would need to BRING TO CLOSING.

(BUZZER GOES OFF)
MAJOR PROBLEM 
You are "short" and the homeowner MUST bring cash to the closing. 
.. You can NOT make or Close on this deal close because you owe more than the Sale Price !!!!!

But the Homeowner property doesn't have this cash, this is why they are in Foreclosure to begin with.

What do you do? 

• Just lose the property in the courthouse steps? NO!
• Ruin your credit for the next 7 years? NO!
• Have the lender hound and harrass you, family and friends to collect? NO!
• Have the bank obtain a "Deficiency Judgment" against you
  and show up in Public Records; which may NEVER allow you to buy anything until you pay it off? then; NO!

SOLUTION: A SHORT SALE

Homeowner needs to bring to closing
$  0.00
The homeowner brings NOTHING!!.
We negotiate with the bank to accept a Short Sale for their mortgage.  

This is a complicated and tedious process.
We are FORECLOSURE and SHORT SALE Specialists
info@foreclosureaid911.com    
(305) 259-9025

WITH THE SAME PROBLEM AS ABOVE, we negotiate with the mortgage lender for a SHORT SALE, which covers everything (Back Interest Payments Owed, Closing Costs, Fees, Taxes, Insurances, Lost Mitigation Fee, Real Estate Commission, etc.)

SAVE YOU THOUSANDS,
TENS HOUSANDS,
possibly HUNDREDS of THOUSANDS of Dollars
(we are NOT exagerating)
SAVE YOUR CREDIT,
POSSIBLY AVOID DEFICIENCY JUDGMENT, and
GET RID OF THE FINANCIAL BLEEDING.

For Upside/Down Loans
for mortgage lenders & homeowners
with NO EQUITY in this current market
a SHORT SALE is the ANSWER.

Why would a lender allow the property to be sold and accept a loan payoff that is far less than the amount of the home loan and not come after the homeowner for the losses?

Simple: To save TIME and MONEY.

When a loan goes into foreclosure most lenders will only get a Realtor in the area to give a BPO ("broker's price opinion"). That Realtor doesn't normally inspect the inside of the home. If the lender forecloses on that property they will sell it "as is" and they will say they don't know the condition of the property.

bank may accept an offer
$$ THOUSANDS & THOUSANDS LESS  $$
than owed to them.

There is an old saying in banking:
"Your first loss is your best loss"

The lender will require a detailed accounting of the transaction. There can be no cash to the seller and the real estate sales commission is limited --each lender has their own commission rules. The lender will require a net cash out estimate from the escrow company handling the sale in order to accept the deal.

(If investors buy the 2nd there will be no 1099 to the property owner.)

The homeowner is off the hook for any loss the bank takes as they accepted the Short Sale. Perhaps the investor will give the seller some cash and extra time to move. In some States the only collateral for Real estate is the property and the lender cannot sue the borrower for any loss. If you're not sure about your State, email or call and we will give you the rules that apply in your State or the State the property is located.

Here is what we do --we ask the investor to complete a very detailed list of information on the property and area, we review that information with the investor and create a plan to purchase.

We make a proposal to the lender using what we call the poison pill approach.

Keep in mind it's a lot less work and risk for the lender to take our offer. The Department Manager of the lender will use our proposal to justify the sale price and protect his job.

In 2004 lenders funded $359 billion in sub-prime loans. The rate of foreclosures had been running 3.5%. But now there are 2,300,000 a year and 67 lenders got out of business. When the pay rate increases on these loans that rate of foreclosure will soar.

Many of these loans are 90% or 100% loans made in areas where the value is stagnate or depreciating. Missed payments and legal fees will put many of these properties at 110% to 130% LTV. Some homeowners will want to keep their home and look to you for a lender workout to keep their home. Many will want to move on but can't sell. Note, in many States the lender can sue for any loss.

We handle Short Sale negotiations with lenders.

There is a large demand for this service and doesn't seem to be very many companies that know what a Short Sale is, and much less on how to work with mortgage brokers, investors and lenders to negotiate a Short Sale. Here is what we do know.

There is a right way to put together a Short Sale offer so a lender can justify settling for your offer.

While most Short Sales are on residential properties they can be, and are, completed on commercial properties that are also in troubled areas.

One thing is sure: Lenders are tightening their underwriting guidelines and rates, and foreclosures are increasing. All the while property values are decreasing in many parts of the country and every mortgage broker will need to explore new ways to stay profitable.