“Experience Makes The Difference”
Short Sales:
A Solution for Qualified Homeowners
A Short Sale occurs when
• The value of a property is less than the
total amount required to sell the property
AND
• The lender(s) accept less than what is
owed to allow the sale of the property
Does Your Property
Qualify?
• Is there any equity in your property?
– If yes, you do not qualify.
• If No, you may qualify
– 1st mortgage only – best chance
– 1st or 2nd mortgage – good chance
– Other liens – must be reviewed
Do You Qualify?
• If you have the ability to make payments and
maintain a modest lifestyle then you do not qualify.
• You qualify if:
– Your liabilities exceed your assets
– You do not have sufficient income after reasonable living
expenses to pay your mortgage(s)
– You understand you will not receive any money from the
sale of the property
– You understand that there is no guarantee
However, your Realtor and Short Sale Operations LLC will
work diligently to close a successful short sale transaction
Required Documents
• You must provide the lender with
– Current bank statements for
all of your accounts
– Current pay stubs
– Last 2 yrs. Tax returns
– Personal financial statement
– Hardship letter
– Supporting documentation
Benefits to You (the Homeowner)
• Greatly reduces damage to your credit
– The worst credit hit is Foreclosure
Stays on credit for 10 years
– Short sale results in late payments with
satisfactory settlement of loan(s)
– With Short Sale, credit starts improving quickly
after 12 months
• No embarrassing public notices and
Foreclosure For Sale signs
• Generally no Deficiency Judgment
More Benefits to You
• IRS income will be excused if this is
your primary residence
• IRS income may be excused for an
investment property. Form 982.
• No cost to you! Realtor’s
commissions, processing fee, and
closing costs are paid by the lender
• Outstanding Property Taxes are paid
by the lender at closing
Consequences
• Possible Deficiency Judgment
This is very uncommon
• 1099-C issued by lender for difference
between amount received and amount
owed. Only if this isn’t your primary
residence.
• Always consult your accountant or tax
attorney for any questions
FAQ’s
• How long does a Short Sale take?
– It may take up to 6 months and you may
remain in the house
• Must I clean up and fix the house?
– NO! But please provide detailed list of any
needed repairs or problems
• I stopped making my payments and the bank
calls every day.
– The calls will diminish once the process is
started.
More FAQ’s
• I’ve been served with Foreclosure papers
– Notify us immediately, provide all the
paperwork and we will assist you.
• I put money down when I bought this house,
can I get any money at closing?
– No! If the lenders agree to accept less than
what is owed to them they will not allow you
to benefit monetarily.
When do we start?
NOW!
• Work with your Realtor and sign the
– Listing Agreement
– Borrower’s Authorization
– Homeowner’s/Seller’s Disclosure
• Provide your Realtor with all mortgage
statements and HOA coupons, if applicable
• Get together Required Documents
• Your Realtor and Short Sale Operations LLC
will begin processing your short sale.