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We created this form to go over the benefits of a short sale VS foreclosure, and the impact on current and future credit, employment, and liability. We think it is a helpful form to give to homeowners to go over the benefits of a short sale. For members of the Short Sale Specialist Network, we also have this form in an editable format to customize, add your own logo and distribute to potential customers. If you have ANY other questions about the short sale process, or need to find a local short sale specialist, visit www.Short-Sale-Specialists.com.
BENEFITS OF A SHORT SALE VS. FORECLOSURE
To help understand the consequences of a foreclosure please read below....
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Issue
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Short Sale
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Foreclosure
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Credit Score
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Upon sale, your mortgage company will report the short sale as ‘Paid', ‘Settled', or ‘Paid as Negotiated'. This will minimally affect your credit score, usually less than 50 points. Late payments are the largest negative impact on your credit score from a short sale
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Your credit score could be lowered 300+ points and will stay on your record for 10 years!
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Credit History
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There is not a reporting item for a short sale. It is not reported on your credit history.
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A foreclosure will remain on your credit for 10 years and is permanent in the public records of your county.
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Current Employment
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A short sale is not reported on your credit report and cannot negatively affect your employment.
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Your employer has the right and many times will actively check your credit if you are in sensitive positions. Sometimes a foreclosure is grounds for immediate re-assignment or termination.
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Future Employment
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A short sale is not reported on your credit report and cannot negatively affect your employment.
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Employers do check your credit history for many job applicants. A foreclosure is the most negative item you can have on your credit and may affect future employment.
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Future Loan with a Mortgage Co.
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You do not have to declare to future mortgage companies that you previously performed a short sale
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On the federally mandated standard loan application form 1003 you will be required to answer ‘YES' to the question ‘Have you had property foreclosed upon or given title or deed in lieu thereof in the past 7 years?' Answering ‘yes' affects the interest rate you will receive
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Future Fannie Mae Loan - Primary Residence
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After a successful short sale you can be eligible for a Fannie Mae backed loan after only 2 years
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After a foreclosure you will be ineligible for a Fannie Mae backed loan for a minimum of 5 years
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Future Fannie Mar Loan - Non-Primary
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After a successful short sale you can be eligible for a Fannie Mae backed loan after only 2 years on non-primary residences
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After a foreclosure you will be ineligible for a Fannie Mae backed investment loan for a minimum of 7 years
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Deficiency Judgment
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It is typical for the lender to give up the right to pursue a deficiency judgment against the borrower
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The bank has the right to pursue the deficiency judgment in all foreclosures (except in states where there is no deficiency)
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Deficiency Amount
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A short sale home is sold at market value and in most cases is a greater value than a foreclosure sale which results in a lower deficiency, which is typically forgiven.
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If the home does not sale at a foreclosure auction it will have to go through the bank REO system. This will result in a longer time to sell and potentially a higher deficiency judgment for the homeowner.
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Copyright First Coast Realty Associates 2010
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network!
Visit The Short Sale Specialist Network
The Short Sale Specialist Network is a nationwide network of Realtors who are specialists in helping homeonwers avoid foreclosure by working a short sale. We work with thousands of pre-screened home owners every month who are looking for an agent to help them with the short sale of their home. We refer them to preferred partner members of our network for a 25% referral fee at closing. Because we succeed only when YOU succeed, we offer unparalleled resources, training, and support for agents who work short sales. See what some of our members have to say below!
***Please note that basic membership is FREE. You can access our forums, blogs and groups sections, and all areas of this site by simply setting up a profile at www.TheShortSaleGuide.com!
Preferred Partner Membership
(877)737-4903
**FREE Agent to Agent Referrals
Members of the Short Sale Specialist Network are free to refer buyer and seller leads to other network members. In order to encourage participation in our blogs and forums section, we regularly give out FREE buyer leads to our most active participants. We also get some sellers visiting our agent website as well.
**Referrals
We currently work with THOUSANDS of buyer and seller leads every month in every state! Our pre-screened and qualified buyers and sellers are Referred ONLY to our Preferred Partner agents. Referral fees are 25% of the listing or selling commission side.
*** Please note that we do have strict standards of practice and additional ethics requirements of the agents we refer home sellers to. Click Here for our agent network agreement.
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Guillermo Coronado
Coronado Home Selling Team
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"The Short Sale Specialist Network has helped me double my business the past year. If you are serious about building your short sale business the Short Sale Specialist Network will be the best gift you will ever receive."
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Debbie Parkans
Re/Max Integrity Realtors
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"The Short Sale Specialist Network is awesome to work with. Probably 75% of the leads that I have gotten have turned into listings. I currently have 8 listings, 3 of them under contract that came directly from them. The best thing is that I don't have to pay for them unless they close."
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Betsy Verrico
Home Style Realty
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"The referrals I have received from the Short Sale Specialist Network are all pre-qualified. When I meet with the sellers they are ready to list the house. I have closed SEVEN short sale transactions from the referrals I have received from the Short Sale Specialist Network. I currently have 21 homes listed for short sale."
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Kim Kaplan
Exit Realty
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"There are many companies on line that profess to "give" short sale referrals but none compare to the integrity of the Short Sale Specialist Network. I consider myself extremely lucky to have become a member of this group. The entire staff at SSSN is available, attentive and responsive."
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Susan Story
Prudential Texas Properties
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"The Short Sale Network has always been very professional and organized to deal with. I have ended up listing many of the leads homes. I would recommend this network to anyone looking to expand their short sale business."
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Benefits of Preferred Partner membership include:
- Access to our "members only" short sale resource website, which is privately accessible through www.TheShortSaleGuide.com
- Unrestricted access to our lender short sale forms section, which contains the required short sale forms, authorizations, and financial worksheets for all major banks, lenders, and servicers.
- Access to our listings forms and documents section, which contains all of the listing forms and resources you will need to be an authority in short sales to your clients. Including question and answer worksheets, foreclosure -VS- Short Sale Comparison form, Short Sale Package sheets, and MANY other forms, documents and resources to help you list and close short sales.
- 10% Discount on ANY Short Sale Specialist Network Training
- Access to our Bank Phone Numbers Section, which is updated regularly and has all the phone and fax numbers for the loss mitigation and short sale departments of all major banks, lenders, and servicers.
- Access to all previously recorded Short Sale Specialist Network Tele-Seminars as well as participation in all future member exclusive Tele-Conferences. Our tele-seminars are information packed conferences discussing advanced short sale strategies, resources, as well as network announcements.
- Use of the "Short Sale Specialist Network Official Member" and other designation logo on your website or any other media within reason for the time of your membership.
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- "Preferred Partner" membership logo added to your profile at www.TheShortSaleGuide.com. This will open you up to receiving many more referrals from other agents and the general public.
One year preferred partner membership is only $195
Customer Service ~ (877)737-4903
***Agents in our network receive referrals from based on availability and are graded based on consistency, accountability, experience, and production. We believe in giving ALL preferred partner agents in our network a chance. If you join, you will receive at least one listing referral as available in your market area from us during your membership. Various areas of the country also produce various amounts of referrals. All referrals are 100% pre screened. Our top agents consistently receive 5-10 listing referrals per month from us. Prior to receiving any referrals from the Short Sale Specialist Network, you MUST sign and agree to our network referral agreement. Click Here for our network referral agreement.
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Talk with one of our agents!
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Got Questions? - Click the logo above for instant chat!
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Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network!
Visit The Short Sale Specialist Network
Lenders are getting their stuff together! A couple weeks ago we got an unexpected call from somebody at Wells Fargo Financial saying "we want to send an appraiser out to this listing of yours value it and to "pre-approve" the short sale of the property.". We were taken by surprise by the call, as this is a property that has no offer on it, and has never received an offer in the past. Now, we've done alot of these, but I've never had a call exactly like this! We have done them many times and received approval letters with "blanks" under the buyers name, and/or long time periods for closing, but nothing this "random"!
Long story short, we just recieved an approval letter on this short sale file, a couple weeks after their initial call, without having an offer or anything on it as of yet! We'll throw it out there tommorrow as a 100% lender approved short sale, and will probably get a buyer and get it done pretty quickly!!
Of all the major lenders (B of A, Chase, Wells Fargo, and CITI), Wells Fargo is the only lender with ANY kind of consistency so far, and our favorite to work with!!
Has this happened to you guys yet? Short sale approval letter without ANY offer?
Mike
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network!
Visit The Short Sale Specialist Network
Hi there! We have just launched a new networking, resource, and training site by Short Sale Realtors, FOR Short Sale Realtors! I know others have done some similar networking sites, but we will offer MUCH more resources in a few weeks as we get up and running! There is a forum, blogs, chat, groups, and MUCH more! There will also be Short Sale Training courses in a few weeks as well!
We wanted to invite our ActiveRain friends to check it out and be part of in!
I'm sure you will find it very useful!
Visit www.TheShortSaleGuide.com
Mike
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network!
Visit Short Sale Specialist Network
As many of my fellow agents, I get tired of multiple, repetitive disclosures with contracts that are just not necessary in real estate transactions. I actually had a deal last week where the sellers and their agent demanded that our buyer initial every page (30+) of an inspection report the SELLER had done eight months prior!
Its not every day I come across a good, new USEFUL disclosure in my area of the country! We are constantly bombarded with buyers who have no clue what they are getting into with a short sale! When I came across this Short Sale Buyers Disclosure last week, I was shocked to see something that is not only truly informative, but 100% necessary in most short sale transactions! We immediately took the form and "customized" it to make it a little more accurate and realistic.
What do you guys think?
Buyers Short Sale Disclosure
1. Short sales are complex and difficult transactions. Depending on the lien holder the short sale is being negotiated with, it could take 4 months or more to receive short sale approval
2. First Coast Realty Associates and its representatives cannot control how another real estate company will handle a short sale transaction. The frequency of their communication with the bank may be sporadic or infrequent. The Buyer's agent has limited influence on the short sale negotiation with the lien holders
3. The Seller's lien holder is NOT a party to the offer/contract
4. Normally the list price has been determined by the Seller/Realtor based on current market conditions, not the lien holders, unless the MLS states "lender approved'
5. There may be more than one lien holder on this property
6. There may be a mortgage insurance company with decision making authority over the Seller's loan
7. It may be in the lien holder's best interest to let the home go into foreclosure rather than sell it as a short sale. The short sale may not close due to pending foreclosure proceedings by lien holders
8. Currently, statistics tell us that roughly 30% of short sales are successfully approved and the transaction is closed
9. Do not expect counter offers or any other communication from the lien holder in writing except for the approval letter
Buyer sign and date section
So what do you think of this Short Sale Buyers Disclosure? Does your area have something similar? Would you use a short sale form as a buyers agent or do you see the need?
We think it is very necessary to educate buyers and set the expectations in advance, that way, at least they might not be AS SURPRISED when things come up like they do many times in short sale deals. We are now giving this disclosure for short sale buyers we work with in any transaction. If you like it, I also have one in a PDF I can email to you as well, just ask!
Mike
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network!
Visit Short Sale Specialist Network
That's a question we hear frequently.
Has the Real Estate Market Stabilized?
Through The Short Sale Specialist Network, we are in constant communication with some of the top agents around the country on a daily basis. This questions seems to be something we hear all to often. "When is the Real Estate Market Going to Stabilize"?
How do you answer this questions? If I had a crystal ball that could foresee the future, I'd be a billionaire by now! Until I can find one, I can only go by the signs that I see around the country, and formulate an answer based on this evidence. My experience is that home prices in some heavily distressed areas have reached near bottom, but in some areas that felt the hit later than others, the bottom is not in sight. One thing is for certain in many area, home sales are up! Unfortunately, prices are down!
With the Winter slowdown now in full swing, the next two months are critical to the recovery of the real estate market. In my opinion, and from what I've seen, the highly distressed areas that have decreased 60%-70% from the peak (Phoenix, Vegas, and much of Florida), the prices may finally be reaching a plateau. I can certainly speak for our area in North Florida, prices are down, sales are decent.
One big indicator as well is that the number of NEW listings on the MLS is down dramatically, and the total inventory is down dramatically as well. Unemployment will play a key to the recovery of the market. Lenders can modify loans all they want, but if they can't provide employment for borrowers, don't expect them to pay! This variable will continue unfortunately to lead to high numbers of short sales and foreclosures in 2010.
What is the Real Estate Market like in your area?
Has the Market Stabilized?
Are home sales and prices up or down in recent times?
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville Florida Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Realtor?
Join the Short Sale Specialist Network
www.Short-Sale-Specialists.com
Visit Short Sale Specialist Network
Litton Loan Servicing Short Sales
We have discovered that in a time when many lenders are VERY slow to approve and process short sales for properties, Litton Loan Servicing is one of the best lenders to work short sales with. They have one of the fastest processing turn around times among all major lenders, and also one of the highest percentages of approvals as well. Their average short sale approval time is approximately 4-5 weeks from the time they receive a completed short sale package. We also are very familiar with the Litton Loan Services Short Sale Policy, and it seems to be very accommodating for home owners. We also know the percentage of the current value that they look to recapture with a short sale offer, and it is very favorable as well. Visit the short sale documents and forms section of our website for a list of the required documents that Litton will need for a short sale on your property, as well as the litton loan servicing loss mitigation department contact phone number.
You should NEVER pay a penny for short sale services, fees are always paid by your lender!
Need help with a short sale with Litton? Ask a short sale expert!
We are a nationwide network of short sale Realtors® who are very experienced at helping home owners who are in financial hardship avoid mortgage foreclosure. If you are considering a Mortgage Short Sale with Litton Loan Servicing on your home, townhome, condo or property, our agents can help short sale your home FREE of charge. This is likely a very tough time for you and your family. Our agents are at your service to answer any questions you may have about the short sale process with your lender. Talk solutions with a state regulated real estate agent and short sale specialist.
Tell us any experiences you may have with Litton Loan Services! Fast, slow, good, bad, horrible??
What do you think?
Mike Linkenauger
Short Sale Specialist Network
(877)737-4903
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network
www.Short-Sale-Specialists.com
copyrighted content - First Coast Realty Associates 2009 - Please Do not copy
Visit Short Sale Specialist Network
Short Sale Specialists
Hi there! I wanted to share a excellent resource with you that you may be able to share with your friends and family. The Short Sale Specialist Network is a nationwide network of short sale expert Realtors who offer FREE help to home owners in financial hardship. If you have any family or friends, ANYWHERE in the country who are faced with difficult financial times, this is an excellent resource to guide them through the short sale process. They can visit www.short-sale-specialists.com. There is absolutely no cost involved!
Find a local Short Sale Specialist!
I have your contact information from when you filled out a form on my Jacksonville real estate website, www.firstcoastre.com. I do have occasional communications via email, but will NOT misuse your contact information!! If I can be of service in ANY way, don't hesitate to ask!
Remember, you can also search foreclosure homes FREE of charge at www.firstcoastre.com/custom3.shtml
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Mike Linkenauger
First Coast Realty Associates
(904)733-4911
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network
www.Short-Sale-Specialists.com
copyrighted content - First Coast Realty Associates - Do not copy
How to Write a short sale offer for Buyers Agents
In our dealings with short sales, we have found an obvious lack of training for real estate agents. Even though we are in "short sale central" here in Florida, at least half of the offers we have come in are asking for seller to make repairs, or missing a short sale addendum, or have some other terms not suitable for a short sale offer.
We created an actual PDF form that we have attached to our MLS listings instructing buyers agents on How to write a short sale offer for Realtors properly. The email address on here actually forwards the offer to myself as well as my head assistant! So far, the form has worked excellent for us! If you like the form, I'll gladly forward a PDF of it.
Short Sale Offer Instructions
Please read these instructions carefully prior to submitting an offer. All offers incorrectly submitted will delay the process and will likely be rejected by the Seller.
1. All short sale properties are to be sold ‘as-is'. Seller is to make no repairs. Please include this statement in your offer.
2. Seller will not pay for a home warranty of any kind.
3. All offers must include a Short Sale Addendum found in the ‘Forms' section of the MLS.
4. All offers must have a Buyer's pre-approval letter or proof of funds.
5. Do NOT put ‘Owner of Record' as the name of the Seller. If after searching the tax records you are still unsure about the name of the Sellers please call.
6. If a MLS listing reads ‘lender approved' or ‘approved at this price' then that is the purchase price the lien holders have communicated to us in either writing or verbally that they will accept. In this instance, if we receive an offer that does not meet the lender's required payoff we will recommend to the Seller that they reject the offer. If you need clarification, feel free to call.
7. When submitting an offer we prefer a scan and emailed copy. Please email us at ‘offers@firstcoastre.com'. If you'd prefer to fax, send it to 904-733-4397.
Thank you for your time and consideration in submitting an offer. We look forward to working with you.
What do you think of our form? Would you add anything to it?
For other resources for Realtors who work short sales, visit www.short-sale-specialists.com
Mike Linkenauger
First Coast Realty Associates
(904)733-4911
Find Jacksonville FL Real Estate on our local website, or subscribe
to my blog at http://activerain.com/blogs/mikelinkenauger
Are you a local Short Sale Expert?
Join the Short Sale Specialist Network
www.Short-Sale-Specialists.com
Visit Short Sale Specialist Network
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Jacksonville Florida Realtor Mike Linkenauger
Jacksonville,
FL
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First Coast Realty Associates
Office Phone: (904) 733-4911
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