WHAT IS A SHORT SALE?

• Simply put, a short sale is “the process of selling a real property where the net payoff to the mortgage holder is less than the outstanding principal loan balance, back interest, and penalties.”

WHY ARE SHORT SALES BECOMING MORE COMMON?

• It may not be that short sales are as common as they appear, but the current real estate market certainly has seen an increase in the recent months. Following the down cycles of the past market, there were waves of demand that were then followed by price increases. These properties were typically purchased with 100% financing, and then prices began to slow, and even decline in some areas. This may have caused some owners to be “upside down”, where their mortgage principal due is higher than the value of their property.

SHORT SALE FACTS

• Lenders often require homeowners applying for short payoff to employ a reputable real estate brokerage to market the property to achieve the highest sale price and avoid any illegal attempts by the property owners to manipulate the process.
• Listing the property with a broker may not stop foreclosure, however it may delay the process.
• Short sale is not a means to eliminate seller’s inconvenience. Property sellers must show financial hardship and their inability to maintain their financial obligations.
• Owner-Borrower is responsible and obligated to maintain the property during the sale process.
  
• Owner-Borrower may be responsible to contribute fund to successfully close escrow.
  
• No proceeds from the sale may be received by the owner-borrower.
  
• There are possible tax consequences if the debt is forgiven (Debt Relief-Capital Gains).

WHAT IF I AM FACING FORECLOSURE?

• While it is never easy to face the reality that you are in danger of losing your home, ignoring the “elephant in the middle of the room” is not the answer either. When you are in financial trouble, the best thing to do is to seek counsel from an expert who will be able to provide you with information about your options. There is a time in the foreclosure process that it may be too late to save your home, and that is exactly what taking immediate action will help you avoid. We can help you. We can provide you with the answers you need. We can educate you on the available options. What we can’t do, is make you call. That is your FIRST action step.
  
  Call us today for a FREE consultation. It costs you nothing to call, and could cost you everything if you don’t!

FORECLOSURE VS. OTHER OPTIONS...

FOREBEARANCE/REPAYMENT SCHEDULE

• Setting aside the right to collect by reconstruction, or reorganizing the present loan to fit the borrower’s income resource or it’s ability to fulfill. Some of the lender’s charges may be waived. This option requires the client’s ability to maintain the payment on the new loan.

REFINANCING:

• Requires the homeowner’s ability to maintain the payment on the new loan which includes all liens.

HARD MONEY LOANS:

• To payoff overdue payments, interests, penalties and other liens; for the sole purpose of “catching-up”. Requires the homeowner’s ability to maintain the payment on the new loan which includes all liens.

DEED IN LIEU OF FORECLOSURE

• The property is deeded back to the lender by the property owner in exchange for the lender departing from the foreclosure process. The lender may be reluctant to receive back the property.

BANKRUPTCY-CHAPTER 7/CHAPTER 11/CHAPTER 13

• It is advised that owner contact a bankruptcy attorney.