A Short Sale is THE SOLUTION out of a bad situation

This is a FREE SERVICE TO SELLERS who are experiencing some form of financial hardship

Short Sale Information

A short sale in real estate occurs when the combined amounts of the loans (i.e. 1st and 2nd Mortgage) owed on a home equal to more than what the property would sell for. This could be as a result of the upside down amount of the home value and the effects of owning a home no longer affordable either due to job loss, divorce or an adjustable rate mortgage that will soon have higher payments. Short sales are a way for homeowners who are having trouble keeping up with the mortgage payments to avoid foreclosure on their homes and still be able to pay off their loan by settling with the lender. Basically, if the lender agrees to the short sale, you will be able to sell the house for a loss and walk away from the home without the devastating effects of a foreclosure on your credit. In most cases a short sale will affect your credit around 60 points as opposed to a foreclosure which can decrease your credit score by as much as 200 points and with a 7-10 yr record to boot.

Usually in order to qualify for the short sale, the homeowners will need to be able to prove their financial hardship or extenuating circumstances in which a short sale is the best way to proceed. Most of the lenders are willing to excuse the ¡§short¡¨ amount on principal residences because they try to avoid going through the foreclosure procedure and will instead issue a 1099 to the homeowner at the end of the year. The Mortgage Debt Forgiveness Relief Act of 2007 will assist most homeowners on their principal residence on the 1099 income (debt forgiveness) as long as they qualify within the IRS parameters. Here is more information on the Mortgage Debt Forgiveness Relief Act of 2007 and how it can benefit you. It is always advisable for you to consult a real estate attorney or your CPA in regards to the tax ramifications of doing a short sale.

As experienced Short Sale negotiators, Realtors and Loan Officers, we have the knowledge and knowhow to handle the entire short sale process from start to finish.

The Short Sale Process

• We will list your home for sale on the MLS and market your property for sale
• We assist you in gathering financial information to support your hardship
• We will submit your short sale package and perform all lender negotiations
• Handle all aspects of the real estate transaction such as the offer, prequalification and disclosure requirements
• We will open escrow and title and coordinate with all key parties to the short sale of the property
• Process everything needed to head you in the direction of closing a successful short sale