Why Opt For A

       

Linda Strasberg Realtor, CHS SFR BPO REO

Las Vegas Certified Short Sale Specialist

702-677-8796

 

Underwater?  Drowning In Debt?  The majority of homeowners in the Las Vegas valley are upside down in their homes.  FORECLOSURE is NEVER the answer!

For Nevada homeowners facing a foreclosure crisis, A short sale will give you the opportunity to sell your home for less than what is owed and avoid foreclosure on your credit history, Limit the damage to your credit; Pay absolutely no commissions, Pay absolutely no closing costs, Erase your mortgage debt on your primary residence, Get $3,000 cash at closing as relocation assistance for those who qualify, Get on the road to financial recovery faster.  If you short sell your home, you can purchase another home almost immediately, depending on your financial situation.

A short sale is when your lender(s) agree to accept less than the amount you owe on your mortgage because you don’t have enough equity to sell the home for what is owed. Homeowners experiencing financial hardship and facing foreclosure can opt for a short sale to avoid the foreclosure process.

Short Sale Timeline:

This is a generalized timeline in which we usually see things take place during the short sale process. Every bank is different with its short sale process however this should give you an idea of what is going on during the time that your short sale is being processed. (All times are approximate.)

The short sale package must be complete with all required paperwork in order for us to send it to the bank. This timeline starts from the day we send your short sale package to the bank with an offer.

Weeks 1 – 3:

Once we send your short sale package into the bank, it generally takes around 7 days to upload it into their system. Once they review a complete package it will be assigned to a Processor. Within 7-10 days from the time it is assigned, The processor will order a Broker Price Opinion (BPO) on the property. The BPO agent will contact me to make arrangements to see your property. Once the BPO is turned into the bank and the bank has ordered any other documents they may require (such as title searches, lien searches, etc.) the file is complete and ready to be assigned to a negotiator.  At this point the bank has not even looked at the offer; they are just preparing the file for the negotiator who will then analyze the offer.

Weeks 3 – 5:

Once your file has been assigned to a Bank Negotiator (which can take up to 2 weeks), the Bank Negotiator will then analyze the offer and depending if your loan is owned by the bank or an outside investor, this will take them around 5-10 days to review. At this point they will then give us a counter offer and other terms in which the bank may require from the seller and/or buyer.

Once we have this information, we will then go back to the buyer and seller who can then decide how they want to move forward. Once an agreement is reached we will then report back to the bank with our counter offer or acceptance. When the bank, seller, & buyer come to an agreement the bank will issue an approval letter in approximately 7 days.

If you have two loans and they are with different banks, then this process will take longer (approximately 2 additional weeks). We have to then negotiate with both banks until both are satisfied with the terms in order to get approvals.  The second note may agree to accept a lower percentage of what is owed to move forward.

Weeks 5 – 8:

Once we have the approval letter from the bank(s), the buyer, if getting financing needs about 2-3 weeks to finish up their mortgage process and close.

Note: This is the timeline expected when the process goes smoothly and everything we need is provided timely.  We have experienced the short sale process finish much faster than this as well as, take much longer; however this is the average amount of time we see take place  (situations vary due to many factors, all parties involved will be updated regularly on the status of their transaction).

What happens to the lost money?

The result of a lender taking less money than what they are owed is called a deficiency. There are several ways a lender can handle a deficiency amount that will always be specific to your certain situation. During your consultation we will cover all of the banks options.

Forgiveness- In many cases when a short sale takes place the deficiency amount is forgiven.

1099 Tax Form- Once you have sold your home for less than what you owed, you should be aware that you will receive a form 1099-C for the amount of the lender’s losses. This is considered loan forgiveness in the eyes of the IRS.

If you have other assets such as savings and you are not insolvent, you may end up being responsible to pay ordinary taxes on the amount of the 1099-C.

If you settle a debt with a creditor for less than the full amount owed, you may be required to report this forgiven debt as regular income, with certain important exceptions. The forgiven debts include money owed after foreclosure or property repossession or credit accounts that you don’t pay. There are exceptions noted below. This can eliminate this obligation but you should consult with a good tax professional.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a short sale, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

Each situation is different and is based on the individual sellers hardship, each lenders requirements will vary. The most important part is that none of these listed above are as bad as having a foreclosure on your credit. 

Please contact me if you are interested in doing a short sale to avoid foreclosure. As a Las Vegas Certified Short sale Specialist, I can answer a lot of questions that you may have about the short sale process. 

Bank of America's Updated HAFA guideliens effective Dec 1st, 2011

HAFA program attributes include:

  • Foreclosure sale date postponed for minimum 120 day marketing period (maximum 365 days)
  • $3,000 relocation incentive to qualified seller
  • Mandated timelines for approval (10 days)
  • Pre-approved Short Sale terms and pricing
  • Mandated deficiency forgiveness
  • Standardizes process, documents and timelines
  • Mandated use of a Las Vegas Realtor

General Guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure.  While there's not a cut-and-dry answer to the question above, due to a number of variables that will differ from seller to seller, below are the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure:


Short sale with FHA Loan

•  Can purchase right away with no mortgage default

•  3 year wait if in default at the closing

• 
Reduced wait if the borrower has re-established good credit and can show extenuating circumstances


Short Sale With Fannie Mae Loan

•  2 year wait if the borrower puts 20% down

•  4 year wait if the borrower puts between 10% to 20% down

•  7 year wait if the borrower puts less than 10% down

  2 year wait if the borrower can show extenuating circumstances and puts more than 10% down


Short Sale with Freddie Mac Loan

•  4 year wait before being able to get a loan

• 
2 year wait if the borrower can show extenuating circumstances


Foreclosure with an FHA Loan

•  3 year wait before being able to get a loan

  Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit


Foreclosure with a Fannie Mae Loan

•  7 year wait from the completed foreclosure sale date

•  3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.

  7 year wait for a 2nd home, cash out re-financing, or an investment property


Foreclosure with a Freddie Mac Loan

•  5 year wait from the completed foreclosure sale date

•  3 year wait if the borrower can show extenuating circumstances



The above statistics will help you answer this important question.  While both short sales and foreclosures impact a homeowner's credit score, the wait for a new home is less for a short sale.


Local Las Vegas Portfolio Lender Will Finance

Within 1 Day After A Short Sale!!!

Don’t Become A Foreclosure Victim!

Homeowners facing foreclosure are at risk of becoming victims of a foreclosure scam. Individuals involved in such scams convince vulnerable homeowners that they can save the homeowner from foreclosure. They tell the homeowner that they have direct contact with the servicer. They advise the homeowner that there are “federal laws” that require your lender to work with them. They assure the homeowner that they can help and will most always ask for a fee.

In reality, they are not there to help the homeowner: They only want your money or your home. They encourage the homeowner to stop working with their lender, servicer and tell them that they will take care of everything.

Some common scams are:

• Bait and Switch – Homeowners believe they are signing documents for a new loan to make the mortgage current, but sign away their home and are left holding the mortgage on a home they no longer own.

• Phoney Counseling or Phantom Help – The person conducting the scam tells the borrower that he can negotiate a deal with the servicer to save the house if the borrower pays a fee first. Once the fee is paid, the person takes off with the money and provides no assistance.

• Bankruptcy Foreclosure - The rescuer promises to negotiate with the lender on the borrower’s behalf for a fee. The rescuer takes the fee and files a bankruptcy case in the borrower’s name and without the borrower’s knowledge. (A Bankruptcy foreclosure will prevent you from buying a home in the future and stays on your credit for 10 years.  After bankruptcy foreclosure, you will be required to get consent from court to purchase a home in the future.  You will be required to show the court documentation that you have found a way to better manage your finances).

New scams are always developing. If the assistance looks too good or too easy or if you are asked to pay a fee for foreclosure prevention services make sure, verify that the service and company contacting you is legitimate.


100's Of Families Saved By Short Sale...Opt For A Short Sale To Avoid Foreclosure!

Best Time To Be Contacted





I Just Have Questions About Short Sales




 Linda Strasberg, All Rights Reserved












las vegas short sale specialist, Why Opt For A Short Sale?, Certified HAFA Short Sale Specialist, Help for Las Vegas Homeowners, Short Sale Survival Guide,  Las Vegas, Nevada



vegas short sale specialist, Why Opt For A Short Sale?, Certified HAFA Short Sale Specialist, Help for Las Vegas Homeowners, Short Sale Survival Guide,  Las Vegas, Nevada



vegas short sale specialist, Why Opt For A Short Sale?, Certified HAFA Short Sale Specialist, Help for Las Vegas Homeowners, Short Sale Survival Guide,  Las Vegas, Nevada