Home Affordable Foreclosure Alternatives Program (HAFA)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). Click HERE!!!

Short Sale:

For some clients, selling their home is actually the relief that they need. After reviewing your financial portfolio, it may become obvious that you can no longer afford your home. Many owners have realized this and tried unsuccessfully to sell their home through traditional real estate methods.

As a result of market fluctuations and changes beyond your control, sometimes your home may not sell at the anticipated full price of your loan. A short sale allows you to sell your home to a third party at a price that is less than the total amount that you owe.

What is a Short Sale?
A short sale is when a lender accepts a discount on a mortgage to avoid a foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner who is facing foreclosure has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity in which they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction that they are better off taking the discount beforehand.
Your lender will use the proceeds from the sale to pay off the mortgage and the remaining balance will be negotiated or perhaps even forgiven. This avenue is open for homeowners who are willing to part with their property but keep their credit rating with the least amount of negative reports.

Negotiating a short sale with the lender is a difficult process, generally because it is very hard to find the bank officer who has the authority to accept a discount. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voicemail systems. Once you get in touch with the right person, then the hard work and the negotiating can begin.

The mortgage company may require a written contract between you and the buyer, an HUD-1 or settlement statement of the sale, a buyer assurance letter stating that the potential buyer is approved for the new loan, proof that the house has been on the market for 90 days with a real estate agent and financial information from you showing that you cannot afford the house.

Many short sales fall through, but we have successfully negotiated a short sale for many homeowners. We are familiar with the process and we know what the mortgage company needs for approval.

CHECK THIS OUT!!REALTOR® Magazine’s Short Sales Resources Guide.

Click here for a video on what is a short sale!!!

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Click here for Aftre the Short Sale!!! 

Click here for housing Counsel, What's a Short Sale!!

What are the Benefits of a Short Sale?

When a Short Sale is achieved, there will not be a foreclosure.  A Foreclosure damages credit up to 7 years and bankruptcy up to 10 years.  Many experts believe that a foreclosure is much worse than a bankruptcy.

Protect your credit.  Foreclosure damages credit up to 7 years and bankruptcy up to 10 years.  Many experts believe that a foreclosure is much worse than a bankruptcy.

Our Short Sale Service is FREE to you; the lender covers all the costs involved.

Controlling future costs. If your property is sold at an auction, you may owe deficiencies and other expenses to the lender. Under most short sales we negotiate, the homeowner will be relieved of this possible future headache.

Can investment properties be short sold?
Most definitely. Any type of property can be sold through a short sale.

Can you do short sales anywhere in the county?

We have done short sales all over. While we cannot promise that we can handle properties everywhere, so far we have not had any problems.

What is a Hardship?

Reduced Income or Unemployment.
Inability to work due to health reasons.
Separation or Divorce.
Medical Bills.
Business Failure.

Death of a Spouse.
Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
Any other circumstance that cripples your ability to repay your mortgage.

Does It Matter Who Does a Short Sale?

Very much so. Traditional Realtors only get about 97% of short sales approved. We have very experienced staff of short sale negotiators their success rate is over 97%.

What Happens If I Don’t Do a Short Sale or if the Short Sale is Unsuccessful?

The result is the same: A Foreclosure.

CLICK HERE!! For Introduction to Short Sales Webinar 

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714.318.7111 Cell