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Can I Keep My House in a Short Sale? I'm Glad My Answer Has Changed....

By
Services for Real Estate Pros with 512-686-1891 www.shortsalemonkey.com

I've been working short sales for about 4 years now and I think I've heard every heart-breaking hardship there is, from severe medical issues leading people into bankruptcy, to job loss, to divorce, you name it.

When these tough times strike, and the homeowners can't make their mortgage payment any longer, I get a lot of satisfaction out of being able to help them avoid foreclosure.  They are able to stay in their house during the short sale, giving them more time to find work if they're unemployed, and they can breathe a temporary sigh of relief that someone that knows what they're doing is preventing the foreclosure from occurring, at least for now.

But in all the short sales we've closed, over $20M worth so far, and as rewarding as those closings have been, both emotionally and financially, something was missing.

Yes, helping homeowners avoid foreclosure brings me great satisfaction, knowing that they'll have a shot at buying  a house again once their financial situation stabilizes and their credit has had time to "heal".  But in almost every situation, during the intial call with the owner, I am asked if there is any way they can keep their house and eliminate their debt at the same time.  Usually this question would lead to a conversation about not-so-successful loan modifications and a financial analysis that would culminate with the short sale being the right solution for their situation.

Even though there isn't a way for most short sale candidates to keep their property, we have begun to assist homeowners with JUMBO loans do just that....and legally.  The process we now have in place not only allows the owner to keep their house, but it eliminates a big chunk of their debt and preserves their credit at the same time.

Now, when I learned about this process, I couldn't believe it at first, but the missing piece HAS been found!

In order for this to work, the 1st mortgage must be a jumbo loan, the owners must be current on payments, and the property must be underwater - the more underwater, the higher the success rate.  As with short sales, getting this done is complicated, but with the right resources in place, which was no easy task to accomplish, it IS being done.  Homeowners are keeping their houses, reducing their debt sometimes by as much as 30%, all while not receiving any negative point implications to their credit - and they couldn't be happier!

As with most people in upside-down mortgage situations, they either ignore the negative equity and continue to make payments, if they can, or they consider walking away, or they consider a short sale.  Very few know that this option is available to them, or know anyone with experience in getting it done.

For me, I'm not sure how long this window of opportunity will be open, but for now there's additional gratification knowing that not everyone has to move from their property.

For more information on how we can help either you or someone you know keep your house, visit Learn How to Keep Your House for a FREE VIDEO, or contact me directly via email or phone. 

aaron@superiorlossmit.com
512-686-1891

 

Comments(5)

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Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

Interesting and intrigueing.  maybe you sould elaborate more in a separate blog. 

Nov 29, 2011 03:45 PM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Yes, I am interested in learning more about this too... please elaborate!

Nov 29, 2011 03:52 PM
Anonymous
Aaron Ayotte

I have some more detail on my web page, http://shortsalemonkey.com/short-sale-help-homeowners/keep-house/ as well as free video that goes into more detail.  I also explain why this ONLY WORKS with jumbo loans, NOT your average homeowner that needs a short sale.

The jist of it is simple....since the owner is current, we have them underwritten for a new loan at approx. 75% of the VALUE.  They should get approved, since one of the requirements for this is that they're current on payments.  Once they ARE approved, we move forward with our attorney that specializes in this sort of workout.  He goes to work to discount the original jumboo debt.  Once discounted, with full disclosure to the lender tha the current owner is going to pay them off, then refinance, we provide the payoff funds (very short term financing) to bridge the closing with the existing lender to the refinance closing a few days later. 

The owner keeps their house, keeps their good credit, gets released from all liability on the prior debt, and now has a new loan with an equity position.  Feel free to call me to discuss further.  512-686-1891.

Nov 30, 2011 03:40 AM
#3
Deb Dahlberg - Rowland
ASK FOR DEB! Stanberry Realtors - Bastrop, TX
Deb Sells Texas!

Aaron I am so excited about this program.  Thank you for sharing it and for taking my call so that I could get a few more details!   Can't wait for you to share it with our office in the near future!

Dec 08, 2011 12:41 AM
Aaron Ayotte
512-686-1891 www.shortsalemonkey.com - Georgetown, TX
Central TX/CO/FL: The Short Sale Monkey

Right on, Deb!  As I stated, I think our window of opportunity for this type of workout is a year or two, at best, and being able to really help people in this way is awesome!  Let me know the feedback you get from your group and if you'd like me to present this to them in a formal fashion, I'd love to!  Thanks for the comment!

Dec 08, 2011 01:12 AM