Home Loan Rate Reduction

Real Estate Short Sales

If you can't qualify for a Loan Modification, this is the best option for all parties. If you lost your source of income, or can't document it and have no way to continue paying your mortgage, you will not get a loan modification. The short sale is win-win for you, the bank and your neighborhood. You stay in the house and typically don't make payments until it sells. The short sale must be negotiated properly or you will have debt collection and income tax consequences. The bank will get more when they don’t have to foreclose. They have you sell it for more than they can get, and if negotiated correctly it's much less detrimental to your credit than a foreclosure or bankruptcy. Without income, you cannot qualify for a loan modification. By allowing you to stay in your home, the bank doesn’t have to pay attorneys to foreclose, change the locks, pay utilities, insurance and an asset manager to manage all this. Even more critical to the Bank is they don’t have to pay back the money they got when they sold your loan to investors. The requirement to pay back the full amount they got happens in a foreclosure. This is why CountryWide, New Century, and over 300 other mortgage companies have gone out of business in the last 3 years. When a property goes to foreclosure, it usually sell for at least 15% less than an owner occupied, ready to move in home, Banks are starting to figure out that they lose up to 60% of their original investment when a property goes to foreclosure.

We will list your property for sale and negotiate the transaction with your lender.

In this transaction, the broker needs to understand the law and know how negotiate with the bank. If this is not done correctly, you may be forced to pay back the bank for the loss, or be forced to pay income taxes on the amount of the banks loss. The bank will send you a 1099 for the total amount they lost, including principal, interest, late fees, closing costs and legal fees. The bank can, but doesn't have to, forgive the difference between your loan and the selling price. There is a recent Federal law that offers some protection in certain cases. State laws vary.

The bank also establishes a foreclosure date during the period you are not paying your mortgage. The short sale and complete closing of the transaction must be completed before the foreclosure date. In the negotiations with your bank we will preserve your credit. When this process is complete, within 12 months your credit report will show that the loan was paid in full.