Short Sales: A Solution for Qualified Homeowners “Experience Makes The Difference”

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 –1 st mortgage only – best chance –1 st or 2 nd 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.