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
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
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:
Short Sale Decisioning and Timeframe
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.
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
• 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
• 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.
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
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.
an experienced real estate consultant that has successfully completed
short sales for other clients. Talk with those clients and ask them
about their experience.