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You Don't
Want a Foreclosure But You Owe Too Much Money to Sell your
House!
Now What?
Short sales are a way to save a homeowner from having the
bank sell their house at the sheriff sale and let's them
avoid foreclosure. YES - even when you
owe more than the house is worth!
Once the house is sold
at the auction, the homeowner has a foreclosure on
their credit report. This is about the worst thing that can
happen to your credit. It will deduct about 200-250 points from your credit score.
If the homeowner can sell their house
BEFORE the sheriff
sale or auction, no sheriff sale takes place. This stops the
foreclosure. The word "foreclosure" may show on the
credit report, but it should then say “withdrawn” and much
less credit points are deducted from the credit score.
Often the homeowner
can get credit sooner to buy a TV, car or other items on
credit.
What does the homeowner have to do to get a short sale?
As a homeowner, you need to find a buyer for your house. If
there is no equity to pay a realtor, then an investor is
your likely choice to buy the house and work the short sale
with the bank.
Your buyer needs to not be a relative or family member.
The bank doesn't want to pass a discount on to the
defaulting homeowner's family.
An investor is a
great choice. They do things a realtor doesn't do.
They will make you an offer to buy your house right away -
not wait for a listing in the MLS to bring a buyer like a
real estate agent will do.
Investors have the expertise to negotiate with the banks and
demonstrate why the house can’t be sold for top
dollar. The bank, of course, is always looking to get a sale
that will completely pay off the whole amount of the
mortgage. And depending on the condition of the house and
the current real estate market, that
is often not possible.
Investors can
give you more options than a real estate agent.
Investors will often buy the house themselves.
-
They may keep the house,
-
They may do the
necessary repairs and resell
it or
-
They may keep it as rental property.
-
They may even know of someone else who would
want to buy the house.
Either way, you have a buyer for your house,
the house is purchased before the sheriff sale or auction
And the
foreclosure is OFF of your credit report!
What Banks Will Do a Short Sale?
Just about all banks will do a short sale when the mortgage is past
due. That could mean one month or six months past due. In
today’s’ market, I’ve know banks that will take a short sale
before the mortgage is late. The homeowner just called the
bank and said they would not be able to keep up the payments
any longer. The bank told them to find a buyer and they
would do a short sale.
All banks will do a short sale. Not all banks will take a big
enough discount to make it worthwhile for the investor due
to the amount of the repairs. The question must always be
asked because you never know what the answer will be “unless
you ask.”
The bank does, however, have the final decision.
If you see words like government foreclosure, Foreclosure
Homes, Foreclosure List, HUD Foreclosure, VA Foreclosure,
foreclosed properties, etc. a short sale cannot be done on
these properties.
They have already been sold at the
sheriff sale or auction. It is too late for a short sale or a
pre-foreclosure sale because the bank that held the mortgage
and started the foreclosure procedure to get the house back
now owns the property – not the homeowner who was originally
on the deed.
To Do a Short Sale the Homeowner Must Still Own the House
Are there rules for Short Sales?
There are rules to follow for short sales. Each government
backed loan, such as VA (Veterans Administration) Loans, HUD
(Housing and Urban Development) Loans, FHA (Federal Housing
Administration) Loans, etc. all have specific guidelines
that need to be followed to get a short sale with these type
loans.
Practical Housing Solutions, LLC have been successful
in all of these. We've been closing Short Sales since
2001!
Call us or sign
up now!
We Will Talk
to Your Bank For You!
513-604-7774
What if I have a second mortgage or even a third or fourth
lien on my property?
We will negotiate with all additional
lien holders to get them to take less than is actually owed.
They have to be in agreement or the house can’t be bought.
If it is a lien for unpaid services or another mortgage, we
will work with them and pay them off.
What happens to the money that is not paid?
The banks and creditors have 2 choices what to do with the
amount that is not paid. They can either “forgive” the debt
and not expect it to be paid. Or they can expect it to be
paid and attach the difference to the homeowners credit,
hoping that at some point the homeowner will come into money
and pay the bill.
If the debt is “forgiven,” it is a good possibility that the
homeowner will have to pay income tax on the amount. There
are still a couple ways to get around this fact. Practical Housing
Solutions, LLC has the solutions
for YOU. Call Now!
Call us or Sign up now with
Practical Housing Solutions
513-604-7774
How Do You Spell Relief?
P-R-A-C-T-I-C-A-L
H-O-U-S-I-N-G- S-O-L-U-T-I-O-N-S
513-604-7774
Our Mission Statement:
To
improve the
lives of all homeowners we come in contact with.
Through education;
what's happening with their house and what to expect
throughout the foreclosure process; settling the situation
with the house through purchase or keeping the homeowner in
the house through modifying their loan. |
