NO COST Short Sale!


 

 

 

 

 

 

Are you facing foreclosure?

 

Are your mortgage payments too high?
Do want to know about the tax implications?
Do you want to minimize damage to your credit?
Are you thinking of Bankruptcy?
Will your mortgage adjust soon?
Are thinking about short saling?
Want to avoid or stop foreclosure and get a fresh start?

 

 

 

What is a Short Sale?

A Short Sale is described as selling your home for less than what is owed(todays market value). In a successfully negotiated Short Sale you will be able to sell your home at todays market value, pay nothing for the sale (your Mortgage Company pays for all commissions and selling costs) and have the remaining balance of your mortgage forgiven by your lender.

 

Don’t Foreclosure on your home, this is the worst option you can pick as a homeowner. Fannie may has publicized that it will be “increasing penalties to homeowners who walk away from there home and do nothing!”. Click on this link for more information http://fanniemae.com/newsreleases/2010/5071.jhtml

 

Here are some commonly asked questions:

 


Q: My lawyer or friends have told me to just walk away and do nothing with my property, should I take their advice?
A: ABSOLUTELY NOT! This is the worst thing you can do. Not only are you setting your self up for legal issues in the future, but there are many more issues that can arise from this. Fannie Mae has recently passed guidelines that will penalize borrowers who just "walk away" and do nothing. Please see link for more details http://fanniemae.com/newsreleases/2010/5071.jhtml

 

 

Q: How much will a Short Sale cost me? 
A: There are no costs to the seller in a Short Sale. We negotiate with the banks to pay all commissions and fees that are associated with the Short Sale. The reason why the banks are willing to pay for all this is because it is cheaper to Short Sale the property then to foreclose.

 

 

Q: Will I owe anything on the difference of the mortgage when the short sale is closed? 
A: No, (in most cases) If it is your primary residence and the amount is less than $2 million then you would most likely fall under the Mortgage Forgiveness Debt Relief Act of 2007. Please click on this link for further information to see if you qualify: http://www.irs.gov/individuals/article/0,,id=179414,00.html

 

 

Q: Will a Bankruptcy prevent a foreclosure? 
A: In most cases NO, a Ch. 7 Bankruptcy will only delay the foreclosure process, as soon as your bankruptcy discharges the bank will continue the foreclosure process. So not only will you have a BK crippling your credit you will also have a Foreclosure, if you choose not to do anything with the property after a BK. This could prevent you from buying another home for up to 10 years! ( not intended to give legal advice please seek the advice of a licensed attorney for more clarification on this subject).

 

 

Q: I just received a Notice of Trustee sale, Do I have time to do anything? 
A: Yes, in a Non-Judicial Foreclosure (California is Non-Judicial) you have a minimum of 21 days before the bank is allowed to sell your property. While this seems like little time, there is still time to extend the sale date to allow the property to be sold.

 

Q: I just received a Notice of Default, how much time do I have left?
A: In a Non-Judicial Foreclosure you legally have 90 days before the bank files a Notice of Trustee sale, after the N.O.T.S has been filed you have an additional 21 days before they can sell the property at auction.

 

 

Q: How will a Short Sale show on my Credit Report? 
A: In a successful Short Sale your lender will report the sale as either: 

 

1. Paid in full - Paid As Agreed

2. Paid - Settled 

3. Paid - Unrated

 

Q: Can I use any agent to Short Sale my home? 
A: No, it is important to select an agent who is very familiar with the process of a Short Sale and is familiar with the laws and how they can affect you in the process. There can be many different avenues in a Short Sale that can negatively effect you long after the sale is complete. This is why it is important to select the right agent.

 

Call 909-274-9498 NOW for your Graceful Exit!
or Email Us Today!

 

 

More information on the HAFA ($3,000 Seller Incentive) program.

 

Regardless of your circumstances, I can help and give you most powerful solutions available. My expertise may help prevent the downgrading of your credit score while providing you with A FRESH START.

 

My SHORT SALE services are FREE of charge to the property owner.

 

 

No More Short Sale Deficiencies

The California Legislature recently enacted Senate Bill 931 generally prohibiting a deficiency judgment after a short sale for first trust deed lenders of one-to-four residential units. SB 458 extends the protections of SB 931 to junior liens. In first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.

 

 Short Sale Deficiencies Fact Sheet

General Rule Unless otherwise exempt, no judgment shall be rendered for a deficiency for a first trust deed lender of one-to-four residential units if the borrower sells for less than the amount owed with the lender’s written consent. SB 458 will extend the protections of SB 931 to junior liens effectively providing that any lender that agrees to a short sale must accept the agreed upon short sale payment as full payment of the outstanding balance of all loans.
Effective Date  July 15, 2011 
Applicability First deed of trust & junior lien holders for a dwelling of not more than four units.
Exceptions

Exceptions include:

  • Lender seeking damages for fraud or waste;
  • Borrower is a corporation; or
  • Borrower is a political subdivision of the state.
C.A.R. Standard Form C.A.R.’s Short Sale Information and Advisory (Form SSIA) paragraph 4A2 discloses this law to sellers and buyers.
Practice Tip  Regardless of the law, it would be prudent for a borrower to obtain the lender's agreement to release the borrower from liability for the balance due on the note in writing and signed by the lender. 
Legal Authority The full text of SB 931, which adds section 580e to the California Code of Civil Procedure, is available at http://www.car.org/legal/2011-new-laws.

 

Short Sale v. Judicial Foreclosure  
Homeowner (1 to 4 units) Generally Protected Against Deficiency


Type of Loan

After Short Sale

After Judicial Foreclosure* 

First Trust Deed

 Yes

Yes, if purchase-money and owner-occupied

Second Trust Deed

 Yes

Yes, if purchase-money and owner-occupied

Purchase Money Loan

 Yes

 Yes, if owner-occupied