Dear Homeowner,
We understand that you are facing some tough decisions about your financial future and that includes the decision to sell your home. Due to your current financial situation and /or the market conditions in your area, you need to sell for less than you owe. To sell your home, you need a short sale. As a Short Sale Specialist, George Saab and His Team will be able to assist you through the process. Short sales can be stressful and a time-consuming process. But in many cases they are necessary in order to get you out from under mortgage debt, especially with property values are declining. By performing a short sale, you will be able to take a large bite out of the money you owe to your mortgage company.
|
What is a Short Sale?
Glossary
U.S. Securities and Exchange Commission
What are the Benefits of a Short Sale?
Who Qualifies For a Short Sale?
3 Most Commonly Asked Questions
|
What is a Short Sale?A Short Sale is when your mortgage lender(s) and/or lien holder(s) agree to take less than is owed so that you can sell your home.
A Short Sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
According to Distressed Property Institute handbook:
A homeowner is 'short' when:
When a borrower owns an amount on his property that when combined with closing costs and commission is higher than current market value.
A short sale occurs when:
A negotiation is entered into with the homeowner's mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is 'sold short."
Your home may be over-leveraged or “underwater” You may behind on payments and cannot sell for high enough to cover what you owe plus other required fees to close. Lenders created short sales as a foreclosure alternative Lenders would rather allow you to short sale versus foreclosing. Foreclosing on properties costs lenders money.
|
The Benefits of Short Sale?- NO Foreclosure on Credit;
- Generally NO money needed to close;
- NO repairs necessary – Sell AS-IS;
- NO taxable event for those that qualify;
- NO deficiency judgment if negotiated;
- Out from underneath your mortgage debt;
- NO Need to file bankruptcy;
- A positive step towards home ownership in only 24 months.
^top |
Who Qualifies? And How?Most homeowners that are facing foreclosure or who are in a ‘must sell’ situation, but cannot sell for the amount owed, do qualify.
However, each Lender and Loan Type has a different set of requirements. Please be sure to tell us: Your Lender and Loan Type This information can be found on a current mortgage statement or the settlement papers from your closing. If you do not know the loan type and lender, be sure to give us authorization to call your lender.
In General, to Qualify you must simply:
- Be experiencing a True Financial Hardship
- Be in default on your mortgage
- Facing imminent default while in a ‘Must Sell’ situation
- Have NO Equity in your home
- Have NO available assets
- Have a lender and loan type with a clearly defined short sale process
- Be in a market where you cannot sell the home for enough to cover your debt and all other associated closing fees.
You need help to avoid foreclosure!The mortgage companies have programs available if you qualify so that you can stay in your home and renegotiate the terms of your mortgage. We can represent you in this process. A short sale is a special sales transaction that allows you to sell your home - even when your mortgage debt is higher than the value of your home - if you qualify. We need to meet so that we can evaluate your options and take the necessary actions right away before the bank makes the decision for you and your credit is ruined. And under new legislation, you may be able to buy another home in two years.* The problem won't go away, and taking the wrong action will only waste more time and could run the clock out.
If you qualify, a short sale could help you:
Avoid Foreclosure
Avoid Bankruptcy
Protect your credit report from the “foreclosure” ding
Be free of financial and emotional burdens
Avoid the humiliation of a public foreclosure
Be eligible to buy another house many years sooner than a foreclosure
Best of all, my commission will be paid by the bank, so you won’t have any out-of-pocket expense!
^top |
3 Most Commonly Asked Questions:
How much is your service going to cost me?NOT ONE RED CENT! The banks pay our commission! It’s a win-win-win situation for all of us. The banks jump at taking a reasonable offer for the loan amount rather than going through the entire foreclosure and losing a lot more, besides banks are not in the real estate business…They’re in the money business. It’s a win situation for you because you’re saved from an embarrassing public announcement, but most of all you escape a damaging foreclosure stamp on your credit report for the next 7-10 years. In fact, many homeowners who team up with us go on to purchase new homes in just 2-years after our service is completed. It’s a win situation for us because you become part of our goal to provide an invaluable service giving homeowners a positive alternative to losing to the battle of foreclosure, and in return we receive a fee for our service.
Shall I consult with an attorney first?We suggest an attorney representation to all who come in our office for a consultation. Already have an attorney? Great! Have them give us a call, just remember, an attorney is “NOT” an expert at foreclosure….. “WE ARE”. Please note that attorney representation is optional and is not required for our service.
Does bankruptcy save my home for foreclosure?This is a great question and is often misunderstood by most homeowners. Filing for bankruptcy is “ONLY” a temporary fix! Yes, it stops the foreclosure process cold, however when the meeting of the creditors takes place you better believe your lender will be there to plead their case and 9 out of 10 times the judge will have the home lifted from the bankruptcy and the foreclosure process will resume without question. Not only will you have a bankruptcy on your credit but you will still lose your home to foreclosure. Now purchasing a new home just jumped from 2-years to almost 10.
To learn more about Short Sale or How to Avoid Foreclosure click here.
Foreclosure VS Short Sale | F.A.Q.
^top
|
|
GlossaryA sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. See also deed in lieu (of foreclosure).
mortgage A loan in which the borrower puts up the title to real estate as security (collateral) for a loan. If the borrower doesn't pay back the debt on time, the lender can foreclose on the real estate and have it sold to pay off the loan.
foreclosureThe forced sale of real estate to pay off a loan on which the owner of the property has defaulted.
deed in lieu (of foreclosure) A means of escaping an overly burdensome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender.
titleEvidence of ownership of real estate.
real estate Land and the property permanently attached to it, such as buildings, houses, stationary mobile homes, fences and trees. In legalese, real estate is also called real property.
real property Another term for real estate. It includes land and things permanently attached to the land, such as trees, buildings, and stationary mobile homes. Anything that is not real property is termed personal property.
default A failure to perform a legal duty. For example, a default on a mortgage or car loan happens when you fail to make the loan payments on time, fail to maintain adequate insurance or violate some other provision of the agreement. Default on a student loan occurs when you fail to repay a loan according to the terms you agreed to when you signed the promissory note, and the holder of your loan concludes that you do not intend to repay.
^top |
U.S. Securities and Exchange Commission
Short SalesA short sale is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will fall. If the price drops, you can buy the stock at the lower price and make a profit. If the price of the stock rises and you buy it back later at the higher price, you will incur a loss. When you sell short, your brokerage firm loans you the stock. The stock you borrow comes from either the firm’s own inventory, the margin account of another of the firm’s clients, or another brokerage firm. As with buying stock on margin, you are subject to the margin rules. Other fees and charges may apply. If the stock you borrow pays a dividend, you must pay the dividend to the person or firm making the loan. For instructions on how to obtain short interest for individual stocks, please see Section V.10 of Key Points About Regulation SHO, which the staff of the Division of Market Regulation prepared. This document describes short sales (including naked short sales), discusses legal and compliance issues, answers frequently asked questions from investors, and provides links to helpful resources. For additional information about selling short, please read our publications entitled Selling Short Against the Box and Short Sale Restrictions. http://www.sec.gov/answers/shortsale.htm
Short Sale Restrictions A short sale is generally a sale of a security by an investor who does not actually own the stock. To deliver the security to the purchaser, the short seller will borrow the security. The short seller later closes out the position by returning the security to the lender, typically by purchasing securities on the open market. In general, short selling is utilized to profit from an expected downward price movement, to provide liquidity in response to buyer demand, or to hedge the risk of a long position in the same or a related security. The SEC has traditionally held the belief that protections against abusive short selling are important for issuer and investor confidence and has enacted prophylactic rules designed to curb manipulative behavior. For information on short sale restrictions — and short sales generally — please read Key Points About Regulation SHO, which the staff of the Division of Market Regulation prepared. This document describes short sales (including naked short sales), discusses legal and compliance issues, and provides links to helpful resources. If you scroll down to Section V, you’ll also find answers to the questions investors most frequently ask about short sales. In addition, Rule 105 of Regulation M governs short sales immediately prior to offerings where the sales are covered with offering shares. Specifically, Rule 105 prevents persons from covering short sales with offering securities purchased from an underwriter, broker, or dealer participating in the offering if the short sale was effected during the Rule's restricted period, which is typically five days prior to pricing and ending with pricing. Its aim is to promote offering prices that are based upon open market prices determined by supply and demand rather than artificial forces. In this way, the Rule safeguards the integrity of the capital raising process.
http://www.sec.gov/answers/shortrestrict.htm
^top |
|
