Short Sale, Avoid Foreclosure Options

To Determine YOUR Best Option, You Need Accurate, Reliable Information from Trusted Experts that have Helped Hundreds of Families. Click on the Video Above!

Avoid Foreclosure, Know Your Options

Your Graceful Exit

How You Can Avoid Foreclosure Scams

 I Owe More Than My Home is Worth....

Do I have the legal right to default on my loan?
Do I have to be behind in my mortgage to get help?
What will happen to my credit -- and what does that mean to me?
Is there government tax relief programs that means I don’t have to pay tax forgiven debt?
What payments am I still responsible for?
What are the AZ anti-deficiency laws and how can they help me?
Can I get another loan in the future?
Attorney, Tax CPA, and Real Estate Consultant Answer Your Questions
Our mission is to help folks explore their options so they can determine what is best for them.
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You Have Options

After helping hundreds of families go through this experience, we know the best option is based on information with clear interpretation, and insight that protects. Whether you have no other options or just because, we don't judge your reasons. We just want to help you exercise your rights to do what is best for you and your family.
When asked what was the most valuable advice they received, the majority of our families shared it was guidance based on integrity and encouragement to choose the best option for their family future.

Click here to view CBS 60 Minutes: Strategic Default: Walking Away from Mortgages

If you are wondering if a Short Sale could help you in your situation, please don't hesitate to call and fully explore your options. Our families will tell you that we value relationships over transactions. That means helping you decide what is best for you.

The April 29, 2010 issue of the the Wall Street Journal's Real Time Economics reported; "More homeowners are willing to walk away from their homes voluntarily, according to new research released by the University of Chicago and Northwestern University. About 31% of foreclosures in March were considered “strategic defaults,” in which homeowners walk away when the value of a mortgage exceeds the house value — even if they can afford the mortgage. That’s up from 22% in March 2009."

Click here to view Wall Street Journal Real Time Economics: More Home Owners Consider Strategic Defaults

At RebeHomes we:
•    Are compensated by Lenders or Buyers.
•    Have relationships with National Lenders that allow us to work quickly and effectively
•    Are licensed, experienced, and compassionate professionals with judgment rooted in experience.
•    Have successfully helped hundreds of families
•    Take care of the communication and processing with banks and buyer

What is a Short Sale?

A short sale is when lenders agree to accept less than the total amount due to them. Not all lenders will accept short sales and not all sellers or properties qualify for a short sale. 

Lenders will weigh the net loss and gain and compare the net proceeds from a short with the net proceeds and loss from foreclosure. If it makes more financial sense to foreclose, lenders will opt to go through the foreclosure process.

 If you are considering a short sale as a seller or buyer, there are significant potential impacts to consider. For your protection, I suggest that all sellers and  buyers seek legal advice from a competent real estate lawyer and accountant to discuss short sale tax and legal ramifications.

 As a real estate consultant, I am not a licensed attorney or a CPA and cannot offer legal, financial, or tax advice. Be aware the I.R.S. could consider debt forgiveness as income, and would therefore be taxable. And unless specifically agreed to there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid.

How Do I Find Out If I Qualify for a Short Sale?

Each lender has their own requirements, but in general they will require the following:
Hardship Letter
Lenders usually require some explanation about how you got into your financial situation. There are several situations that clearly demonstrate to a lender that the borrower will be unable to avoid foreclosure. Those situations include loss of job, medical emergencies, divorce, military service or deployment, job relocation. Lenders will are not sympathetic to cases of fraud or criminal behavior.

Financial Statement
Lenders require a summary view of  your financial condition which includes income, assets and expenses. Assets includes savings accounts, money market accounts, stocks, bonds, cash,  and other real estate. If your financial picture shows you have assets to cover the debt, it is unlikely the lender will approve a short sale.
Copies of Bank Statements, Check Stubs, Tax Returns
Lenders need to validate the information you provide as accurate. They have a fiscal responsibility to ensure the hardship is valid and truthful. Your banking activity, income, and past records help the lenders complete their due diligence.

Letter of Authorization and Release 
Lenders will not disclose or discuss personal information without written authorization from you. If you are working with a real estate consultant, negotiator, title company, or lawyer, you will need to write a letter to the lender giving the lender permission to talk your representatives about your loan. The letter should include the following:
•    Property Address
•    Loan Number
•    Your Name
•    The Date
•    Your Agent's Name & Contact Information

Net Sheet (HUD-1)
This is an estimate of all the costs and how the proceeds will be distributed when the transaction closes. It will show the lender the sales price (if you have an offer from a buyer, if not it will be an estimated purchase price) closing costs, escrow and title fees, commissions,  taxes, unpaid loan balances, outstanding payments due, and late fees. Your real estate consultant and escrow officer can prepare this for you.

Comparative Market Analysis
If you are unable to sell your home for enough to pay off the lender, due to a decline in property values, a comparative market analysis (CMA) will support that condition. Your real estate consultant can prepare a CMA for you, which will show prices of similar homes in your area including properties:
•    Currently active on the market
•    Pending sales (in escrow waiting to close)
•    Solds from the past three months.

Purchase Agreement & Listing Agreement
When you have an executed purchase agreement with a qualified buyer, the lender will want a copy of the offer, a copy of your listing agreement, a copy of MLS listing and the buyer’s loan status report (Arizona’s loan pre-qualification form.) At this point the lenders will often negotiate a reduction in commissions, closing costs and other standard costs that seller may such as home inspection or warranty services.

Short Sale Decisioning and Timeframe
Each potential short sale is reviewed on a case by case basis by the lender.  If all the items are properly submitted -- and the net to the lender from the short sale will be more than the net the lender through foreclosure, the lender should approve your short sale. 

The average time for a short sale from the time you first begin to market your property until the sale is completed is between 60 to 120 days.
As part of the negotiation, the lender may ask for additional cash or an unsecured note. Whether or not you agree is up to you.
Contacting the lenders, preparing the documents for the short sale package, negotiating with the lien holders, marketing your property for sale, negotiating a purchase contract, and overseeing the hundreds of transactional details in a real estate sale transaction requires significant skill, time, and attention to details. 

Most homeowners feel it is their best interest to delegate that task to someone they trust and respect that has the experience, skill, and focus to best represent their interests.
Look for an experienced real estate consultant that has successfully completed short sales for other clients. Talk with those clients and ask them about their experience.