Acceptable Hardships
- Loss Of Job
- Loss Of Income
- Divorce
- Death Of A Family Member
- Job Transfer
- Business Failure
- Damage To Property
- Inheritance
- Medical Bills
- Military Service
- Payment Increase
- Insurance or Tax Increase
- Too Much Debt
- Incarceration
People over complicate the Short Sale process. A Short Sale is the sale of a home in which the mortgage owed is higher than the contracted sales price. This means that the note holder (Bank) has to agree to release the note on the home. Everything aside from the banks approval is the same as a normal sale. It still is an agreement between a buyer and a seller - plain and simple. Too many times the parties involved over complicate the situation, causing poor communication and uneasiness between the buyer and seller.
There are a couple of options that the seller has when dealing with the bank for negotiating the shortage. Sometimes the homeowner can make the difference up with savings or the liquidation of assets. In this scenario, the seller simply writes a check for the amount owed at settlement and the sale takes place as scheduled. Although this is not necessarily the ideal scenario, the bank will not accept that you want to short them when you have the money available.
A second option that homeowners have is to work out a settlement with the not holder. This will result in a fast agreement and gives you the best odds of a successful closing. In this scenario, the bank will usually accept a payment plan for a portion of the amount owed. A real life example that we have seen is a $175,000 second trust negotiated down to $25,000 to be paid interest free over 10 years. Why would they do this - something is always better than nothing! This scenario should always be considered since there are tax implications in a fully dissolved short sale. A tax accountant will be able to show you the implications of new federal laws that remove tax liability to some in a debt forgiveness situation...this relates to income levels and amount of debt forgiven.
The third option is total debt forgiveness. This situation is where the entire shortage is forgiven from the lien holder. These scenarios are extremely tricky and not always the best result that you could ask for. For example, when the loan is close, your agent should try to negotiate a letter of reporting to the credit bureaus as "PAID As Agreed" or "Satisfied". You also need to make sure that your agreement includes language that states the bank will forfeit the right for future collections. Most homeowners try to get this scenario agreed to by the bank since there is a total debt forgiveness and essentially gives them a clean start with the exception that you may not qualify for a Fannie/Freddie loan for at least two years. Your credit rating will depend on late/missed payments and how the closing of your loan is negotiated. The other scenarios are easier to get these negotiated into - but your individual situation dictates what you should be targeting as a solution.
When evaluating your options, it is best if you have a trained agent evaluating your position. Emotions can impact the solutions we make, and an agent who understands the process will be able to advise you toward the best solution with the least impact on your current lifestyle.
The statistics are alarming - almost 30% of homeowners are facing some form of financial hardship impacting their ability to pay the mortgage. Nearly 70% of homeowners facing foreclosure do absolutely nothing!
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It's time you do something about this! |
Questions about your Mortgage? Living paycheck to paycheck? Need to move but owe more than your home is worth? These are real life situations that everyone is facing. There is hope and we can HELP you get back on your feet. Our Short Sale plan has been tailored to fit the housing crisis in Northern Virginia, and the training we have received from the Certified Distressed Property Institute is above and beyond the every day Realtor training. You will be amazed at the weight that is taken off your shoulders just by making this call. We market your home to the fullest, and you get the full set of resources that the Mulhern Home Team offers. Pick up the phone, or fill out the contact form - it's time to stop worrying and start fixing the problem. CALL TODAY AND START LIVING AGAIN Our In-Home consultation will help you determine what your options are and what choices you have. We have the resources to help you, including Loan Officers and Real Estate Attorneys, that we provide to our clients as a part of our free service. Areas We Service
(571)-247-1638
| The foreclosure crisis has impacted every homeowner in every neighborhood in every state. First it was the sub prime borrowers that paid the price - now individuals who had good credit and good jobs are left in desperate situations. The housing market's free-fall has left those forced into a move wondering how they can ever resolve the problems they are facing. This is a distressed homeowner, and we are here to help those facing a distressed sale answer the questions that never seem to have the right solutions. Short Sales are not just homes where the loans have adjusted. These are people facing a job or income loss, a job relocation, an illness, or a divorce. There are many forms of hardship that may qualify you for a successful short sale - but that is not our main goal! |
You have taken the first step by trying to find the answers that will help solve the problem. This website is devoted to working with homeowners facing a hardship, and offering our services to work together to find an acceptable solution. There is no fee or catch...it is our commitment to helping homeowners get the answers and service they need to avoid a difficult decision. Together we will work out a plan to save your home from foreclosure - the first goal is to find a way to stay in your home. If selling your home is the best option, we have been trained to successfully facilitate a Short Sale, and are one of a few agents in our area that hold the Certified Distressed Property Expert designation. This training has provided us with an excellent Short Sale system that provides almost a 90% success rate. Currently, about 10% of short sales get approved. There is no time to delay - every day is another day closer to losing your home.
Browse through our website and gather the information you need. When you are ready to reach out for help, call us and we will be there to guide you along this difficult path. Do not hesitate to call - every second matters.
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Jimmy Mulhern Short Sale & Foreclosure Resource Expert (w) 571-247-1638 |
