Hayes Realty Group

John J Hayes Always stay on "PAR" with your real estate needs Serving Sacramento, Folsom, El Dorado Hills, El Dorado County      Tuesday December 12th, 2017

Contact John 530-306-3316

What is a Short Sale

What is a Short Sale?
A Short Sale is when your mortgage lender(s) and/or lien holder(s) agree to take less than is owed so that you can sell your home.
A Short Sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan.
According to Distressed Property Institute handbook:
A homeowner is ‘short’ when:
When a borrower owns an amount on his property that when combined with closing costs and commission is higher than current market value.
A short sale occurs when:
A negotiation is entered into with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is ‘sold short.”
Your home may be over-leveraged or “underwater” You may behind on payments and cannot sell for high enough to cover what you owe plus other required fees to close. Lenders created short sales as a foreclosure alternative Lenders would rather allow you to short sale versus foreclosing. Foreclosing on properties costs lenders money.

The Benefits of Short Sale?
– NO Foreclosure on Credit;
– Generally NO money needed to close;
– NO repairs necessary – Sell AS-IS;
– NO taxable event for those that qualify;
– NO deficiency judgment if negotiated;
– Out from underneath your mortgage debt;
– NO Need to file bankruptcy;
– A positive step towards home ownership in only 24 months.

Who Qualifies? And How?
Most homeowners that are facing foreclosure or who are in a ‘must sell’ situation, but cannot sell for the amount owed, do qualify.
However, each Lender and Loan Type has a different set of requirements. Please be sure to tell us: Your Lender and Loan Type This information can be found on a current mortgage statement or the settlement papers from your closing. If you do not know the loan type and lender, be sure to give us authorization to call your lender.
In General, to Qualify you must simply:
– Be experiencing a True Financial Hardship
– Be in default on your mortgage
– Facing imminent default while in a ‘Must Sell’ situation
– Have NO Equity in your home
– Have NO available assets
– Have a lender and loan type with a clearly defined short sale process
– Be in a market where you cannot sell the home for enough to cover your debt and all other associated closing fees.
You need help to avoid foreclosure!
The mortgage companies have programs available if you qualify so that you can stay in your home and renegotiate the terms of your mortgage. We can represent you in this process. A short sale is a special sales transaction that allows you to sell your home – even when your mortgage debt is higher than the value of your home – if you qualify. We need to meet so that we can evaluate your options and take the necessary actions right away before the bank makes the decision for you and your credit is ruined. And under new legislation, you may be able to buy another home in two years.* The problem won’t go away, and taking the wrong action will only waste more time and could run the clock out.
If you qualify, a short sale could help you:
Avoid Foreclosure
Avoid Bankruptcy
Protect your credit report from the “foreclosure” ding
Be free of financial and emotional burdens
Avoid the humiliation of a public foreclosure
Be eligible to buy another house many years sooner than a foreclosure
Best of all, my commission will be paid by the bank, so you won’t have any out-of-pocket expense!

3 Most Commonly Asked Questions:

How much is your service going to cost me?
Nothing..The banks pay our commission! It’s a win-win-win situation for all of us. The banks jump at taking a reasonable offer for the loan amount rather than going through the entire foreclosure and losing a lot more, besides banks are not in the real estate business…They’re in the money business. It’s a win situation for you because you’re saved from an embarrassing public announcement, but most of all you escape a damaging foreclosure stamp on your credit report for the next 7-10 years. In fact, many homeowners who team up with us go on to purchase new homes in just 2-years after our service is completed. It’s a win situation for us because you become part of our goal to provide an invaluable service giving homeowners a positive alternative to losing to the battle of foreclosure, and in return we receive a fee for our service.

Shall I consult with an attorney first
I suggest you speak with a Local Real Estate Attorney. If you need a reference..I can supply you with one..Already have an attorney? Great! Have them give us a call, just remember, an attorney is “NOT” an expert at foreclosure….. “WE ARE”. Please note that attorney representation is optional and is not required for our service.

Does bankruptcy save my home for foreclosure?
This is a great question and is often misunderstood by most homeowners. Filing for bankruptcy is “ONLY” a temporary fix! Yes, it stops the foreclosure process cold, however when the meeting of the creditors takes place you better believe your lender will be there to plead their case and 9 out of 10 times the judge will have the home lifted from the bankruptcy and the foreclosure process will resume without question. Not only will you have a bankruptcy on your credit but you will still lose your home to foreclosure. Now purchasing a new home just jumped from 2-years to almost 10.