Short Sales Information
Are you facing a financial hardship that might cause you to lose your home?
WE CAN HELP!
We at deVre International Real Estate Group are experts at helping homeowners like you sell their property by negotiating with the bank for
SHORT SALE APPROVAL
We are a licensed real estate brokerage firm in the state of California. I am a Certified Distressed Property Expert.
CALL OUR SHORT SALE DEPARTMENT TODAY
949-495-2092
for a free no obligation consultation.
Short Sale FAQ’s
What is a Short Sale?
A short sale occurs when a bank or mortgage lender agrees to discount a borrower’s loan balance due to economic hardship of the mortgagor. The negotiations are done through communication with the lender’s loss mitigation department. The lender will have the right to approve or disapprove the terms of the sale. When the homeowner closes escrow on the property he will then turn over the proceeds to the lender in to satisfy the debt. Most short sales occur as a prevention to foreclosure as the lender will have a smaller financial loss than with a foreclosure.
Do I qualify for a Short Sale?
A homeowner who is experiencing a financial hardship due to changes in monthly income, loss of employment, unexpected medical bills, divorce causing them to fall behind on their monthly mortgage payments. In addition, the homeowner has no equity in their home to pay off their outstanding loans as well as closing costs during the sale process. At the conclusion of the short sale, the bank will cover all closing costs and realtor commissions.
What is the Short Sale Process?
1. Schedule an appointment with our office to meet with you, review our marketing strategy and give you suggestions on how to prepare your home to be listed for sale. We will let you know what, if anything, you should do to make your home more inviting to prospective buyers.
2. We, as your realtor will assist you in collecting all of the required documentation required by your lender. This should only take a few days.
3. We will now aggressively market your home for sale, using advertising and open house, looking for the most qualified buyer
4. The presentation of an offer to your bank is the next step. We will provide a complete short sale package to the loss mitigation department increasing the possibility it will get reviewed and sent to the next level for approval. Negotiation and approval can take as few as 2 weeks up to 3 months. It has been our experience that the average short sale takes from 45 to 60 days from the date the offer is presented to receive an approval.
5. The final stage to the process is the escrow period, which after approval by the lender should take approximately 30 days.
When should I begin the Short Sale process?
As soon as you find that you are unable to keep up with your mortgage payments and will be falling more than 30 days behind. The sooner we begin working with you on the process, the more you increase your opportunity for a successful close of escrow.
How will this affect my credit?
Once you have fallen more than 30 days behind on your mortgage payment, the bank has the right to report this to the credit bureaus which will have a direct impact on your credit score. Once the short sale is complete, most banks will report to the credit bureaus that your account has been “paid in full for less than the full amount.” If your home goes to foreclosure, the bank will report “Foreclosure” to the credit bureaus.
Are there any tax consequences to a Short Sale?
Yes there are tax consequences. We always recommend that you check with your tax professional before doing anything that might affect your tax status.
You should also know these important facts:
1. Do not sign a Power of Attorney
2. Do not sign your deed over to an investor
3. Be wary of any offers to refinance
4. If you have no equity in your home there is no legal way that you may receive any cash from the sale unless that is negotiated with your lender. Taking cash from outside a negotiated short sale is considered fraud.
Short Sale Documentation
___ Authorization to Release Information
___ Purchase and Sale Agreement
___ Client Financial Sheet
___ Hardship Letter - handwritten, signed, and dated (Any missing financial data needs to be explained in a separate handwritten, signed, and dated letter to the bank
___ Supporting Hardship Information (Letter of termination, lay off notice, unemployment benefit letter, letter from Doctor, medical documentation, repair bills / receipts, etc.)
___ Last 2 Yr's Tax Returns with W-2's
___ Two Most Recent Consecutive Payroll Stubs
___ Two Most Recent Months Consecutive Bank Statements
___ Any Recent Lender Correspondence Received
___ Divorce Decree (if Applicable)
___ Bankruptcy Discharge (if Applicable)
___ Death Certificate (if Applicable)
Submit Form For Additional Information On How We Can Help You With Your Short Sale.
CONFIDENTIALITY NOTICE AND DISCLOSURE: deVre International Real Estate Group Inc, recommends that if you have tax or legal questions, that you seek the advice of an appropriate professional.
