How much does it cost me for you to do a short sale on my house?
In a short sale we charge $595 documentation fee upfront for hard costs that we incur. The reasoning behind the fee is simple. We want you, the seller, to be sure of your financial hardship. We don't want to take on a short sale listing if the seller is not being forthright with us regarding their situation.
Also with a short sale situation all other fees like closing costs, broker's commissions, etc are all paid for by the bank. The seller does not pay these fees because the seller does have the money to pay it. All of this is in writing prior to the process taking place.
This fee is very small compared to the huge advantage you could have once the short sale is approved and completed.
Is my house too cheap or too expensive to do a short sale?
With a short sale It does not matter how much your home is worth as long as basic criteria below is met you home would be eligible for a short sale:
Property in foreclosure or in default
Little or no equity in the property
Personal financial hardship
At Least 60+ days to a Foreclosure Auction
As I have discussed before, if you do have all four of these conditions currently then you should be eligible for a short sale. If you are not sure about the value of your property or if you have any questions what so ever, feel free to contact us.
*Should I accept a short sale offer from an investor?
In a short sale, obviously this is up to each individual, but we believe the only real reason to reject an offer is because you know that you will have a tax problem. Again, most sellers who have a short sale qualify as insolvent with the IRS and can therefore avoid taxes on the short sale if the deal is properly negotiated. Otherwise, neither you nor your Realtor should have a concern about the price.
Investors do not want to waste time with low ball offers either so you can be assured that if they place an offer, they have reason to believe it could be accepted. If you need to sell your home, the quickest and surest way to do so is through an experienced short sale specialist.
*My Real Estate Agent doesn't know about or doesn't recommend a short sale, what do I tell him/her?
If the foreclosure process has already been started, do not let anyone stall you or delay you from taking action! The biggest mistake for a homeowner in foreclosure to make is to do NOTHING. Before you know it, you will be left with no options and you will be evicted. You must deal with your situation ASAP, and if you agent does not want to look into all the options for fear of losing his commission, you should look for a new agent.
If you wait you can lose it all, if you act quick you can gain from this. The ball is in your court.
No. Even though short sales are increasing they are still fairly complex, as I have stated. All the criteria MUST be met for a bank to even consider a short sale. It is not easy to convince a bank that the market value of the home is lower than what they are owed. They do not like to take a loss on a loan.
Then the bank must be convinced to discount the mortgage enough to make it viable for a potential buyer.
In some cases, we do all the paperwork and wait several weeks only to be denied. Again, the homeowner continues to own and live in the house if he chooses.
If the lender does not approve the short sale, The Pahua Group has no rights at all to the property and no transaction occurs. The purchase agreement becomes void and the listing continues.
IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.
CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.
No, this would be illegal. A short sale must be an "arms length" transaction. You cannot short sale your own house nor can close members of your family or friends do one for you either.
In a short sale, the lender is agreeing to discount the mortgage amount due to legitimate hardships; but not so that the homeowner can make a profit. No money from a short sale transaction can be paid to the homeowner (seller). Lenders will not approve any short sale in which they suspect the foreclosed homeowner will profit.
* Can't I just go down to my branch or mortgage broker and talk to them about reducing my mortgage?
Unfortunately, things don't work that way anymore in the banking business. Once you obtain a mortgage, it typically gets bundled with other mortgages and sold to other banks or investors. Oftentimes, the company to which you make your payments is not even the bank who holds your mortgage; they are simply paid to "service" the loan.
Also, once you mortgage lender begins the foreclosure process, the file is turned over to a loss mitigation company so the "lending" departments or the branch no longer have anything to do with the loan.
All negotiations regarding the short sale are done between the Listing Agent and whatever loss mitigation or asset management company works for the lender.
Contact Fred Sed 949-274-3733 to see if you qualify for a Short Sale.
The purchaser of the house is the owner after a short sale just as in a normal sales transaction. The mortgage lender is paid off and the previous homeowner moves to a different home.
*What do I do about my back property taxes when I do a short sale?
Just as in a normal home sale, property taxes are the responsibility of the homeowner until the date the sale is closed. Then they become the responsibility of the buyer or investor.
If your property taxes have not been paid this will affect the negotiations between the buyer and the bank, so you must inform us or any buyer of those taxes owed.
* What is "Financial Hardship" and why is it so important?
"Financial Hardship" is a critical part of the short sale equation. No matter what you hear about banks "not in the business of owning real estate", etc., they DO NOT give homeowners a break easily. They require GOOD REASON to give a discount for a short sale. They have entire departments called "Loss Mitigation", which means their entire job is to reduce the loss the bank takes on a bad loan. Giving big discounts to sellers increases the loss on a bad loan, so they don't take it lightly.
The ONLY reason a lender will agree to a short sale is if they determine that the short sale will net the more money that proceeding with the foreclosure. Understanding the homeowner's financial hardship is a big part of the lender estimating whether they will be paid in full for the mortgage.
IF THERE IS NOT A LEGITIMATE FINANCIAL HARDSHIP, A LENDER WILL NOT SHORT SALE EVEN IF THE HOME IS WORTH LESS THAN THE MORTGAGE BALANCE. Quite simply, the lender will make the borrower pay the shortfall if there is no hardship.
Many homeowners try to use a short sale as a "get out of jail free" card to dump their poor investment. Lenders will not allow this and it is a waste of time to try. If you are employed and have some assets, but you have simply lost value on your home and want to sell, YOU PROBABLY CANNOT SHORT SALE. If you are current on your mortgage, IT IS VERY DIFFICULT TO SHORT SALE. Lenders need to see that you simply cannot pay them back before they will short sale.
To see if we might be able to handle your short sale call (949) 274-3733, or e-mail us at FredSed@PGcoastal.com
If you expect to make money on my short sale, can I get some of it?
Unfortunately, that is not allowed by the lenders. A lender will not allow a seller to profit from a short sale. If they perceive that there is any "excess" money in the transaction, they want it for themselves to offset their loss.
Do I have to move after I do a short sale?
Yes. After the short sale transaction, the new owner will own the house and the seller must move, just as in a normal sale.
IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.
CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.
In order to both determine if your lender will consider a short sale and then to actually negotiate the short sale, The Pahua Group needs be able to speak to your lender about the mortgage. The lender will only speak to people you have authorized them to speak with.
By signing a Borrower's Authorization, you give the lender permission to speak to The Pahua Group about your loan. That is all it does, but it is necessary. An authorization must be filled out for each mortgage.
How does The Pahua Group make money on a short sale?
We make a standard real estate sales commission that is paid by the lender only in the event of a successful short sale.
IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.
CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.
Again, if the bank doesn't accept the short sale offer, there is no transaction and the home is still owned by the foreclosing homeowner and the foreclosure process continues.
How long does a short sale take, I need to get out now!
A short sale takes approximately 60 days to complete and sometimes longer. This is very important. This complicated process takes time so to have the option of a short sale, you must act soon. If you wait until 1 week before eviction, no one can help you do a short sale. It is simply impossible. DO NOT WAIT.
IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.
CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
