Foreclosure Alternative For Thousands of Las Vegas Homeowners Unable To Make Their Mortgage Payments TodaySeptember 8, 2012
What can you do when you cannot afford the mortgage payment and your house cannot be sold to meet the balance owed?
One of the leading solutions to stop foreclosure today is a short sale. See: Las Vegas Foreclosure vs Short Sale Report.
In a short sale, the lender agrees to accept the sale amount, even if it is less than what is owed on the mortgage.
* Upon completion, the Short Sale is reported to credit reporting agencies as mortgage paid as agreed for less than owed.
* Lenders are prohibited from pursuing a deficiency judgment against the homeowner, or of requiring the homeowner sign a promissory note for unpaid balances at completion of short sale of primary residence.
The primary differences between a Short Sale vs Foreclosure:
Short Sales: Negotiated settlement, seller's credit is bruised -- not ruined, no attorney fees, peace of mind, all liens are negotiated, you can obtain financing and buy a home again within 1 business day of completion of short sale.
Foreclosure: Court settlement, seller's credit damaged long term, usually large attorney fees, very little peace of mind, all liens are exhausted, buy again in 10 years. (Obtaining financing to own a home in the near future is severely impaired by foreclosure.)
As a Las Vegas Certified Short Sale Specialist with a 100% success rate, my #1 priority is to help families get their life back to normal as quickly as possible. Part of that is enabling them to have the ability to own a home again. A successfully negotiated short sale enables you to become eligible to obtain financing within 1 day of completion of a short sale, as opposed to five years after a foreclosure (seven years if the property is not your primary residence). A short sale, by itself, lowers your credit score by as little as 50 points, as opposed to anywhere from 250 to over 300 points in a foreclosure. A drop in credit due to a short sale can be recovered as quickly as one year, while a foreclosure will affect your credit negatively for at least three years. A foreclosure will be publicly recorded for 10 years.
These new guidelines streamline documentation requirements, waive deficiencies for borrowers that successfully complete a short sale and set standard payments for subordinate lien holders.
In addition, all servicers will have the authority to approve and complete short sales that conform to the requirements without receiving individual approval from Fannie Mae and Freddie Mac.
Servicers will be permitted to approve a short sale for borrowers who have certain hardships but have not yet gone into default. Those hardships include: the death of a borrower or co-borrower, divorce or legal separation, Illness or disability or a distant employment transfer to provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.
In addition, FNMA and FMAC are significantly reducing the documentation required to complete a short sale, including requiring no documentation of a borrower’s hardship 90 days or more delinquent and have a credit score lower than 620. This will remove barriers for those homeowners who are most in danger of foreclosure and increase servicer efficiency in completing a short sale.
FNMA and FMAC will also limit subordinate-lien payments to $6,000. Previously, subordinate lien holders often attempted to negotiate higher payments. The servicer will be able to offer the maximum payment of $6,000 in order to facilitate the transaction. By setting a standard payout amount and a limit for every transaction, Fannie Mae and Freddie Mac are removing the guess work and standardizing the transaction to help accelerate the short sale process.
To schedule a complimentary consultation
or for all the information about Nevada’s specific rules regarding
deficiency judgements, deficiency waivers and the mortgage debt
forgiveness act in effect from 2007 - 2012, call 702-677-8796 today.
Distressed Homeowners May Be Eligible To Receive $3,000 - $35,000 Relocation Assistance At Upon Completion of Successful Short Sale At Close of Escrow.
FREE Short Sale Pre-Pack kit specific to your lender will be furnished upon request when a short sale is determined to be the best solution.
Posted by Linda Strasberg. Posted In : Las Vegas Real Estate Trends