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Possible Outcomes If your Short Sale Approved

If the short sale is approved, explain the following possible outcomes to the seller:

– All liens will be released, in full satisfaction of mortgage with no conditions.
– Full satisfaction of mortgage with a small or large amount of contribution from the seller.
– Full satisfaction of mortgage with an unsecured promissory note executed between seller and lender, with seller’s cash contribution at closing.
– Full satisfaction of mortgage with an unsecured promissory note executed between seller and lender, without cash contribution from any party at closing.
– Release of lien with mortgage reporting of less than full pay off.
– Release of lien with an unsecured promissory note, with payment less than full reported
– Release of lien with default judgment to be paid over time

If the homeowner’s loan modification has been disapproved, find out why. The same reasons will help you in your short sale negotiations. It is most likely that they have been disapproved with loan modification for insufficient income or they no longer live in the house. If they do not make enough income to qualify for a loan with lower interest rates and lower values, then they will not be able to continue making payments for their mortgage. The homeowner should include this in the hardship letter and you as an agent should include this in your cover lender to the lender. Also, include the loan modification rejection letter in the short sale package.

Other Articles to Read:

Bank of America’s Cooperative Short Sale Program

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sale Qualification Process

There are good attorney in Florida who can delay foreclosures only if you need to complete a part of the short sale process. Gainesville short sale agents do not suggest taking a listing and negotiating a short sale for homeowners who are about to lose their property in the same week as it is listed.

There is no guarantee a short sale could get approved, but following these steps will increase its chances.

A Short sale has to meet certain guidelines imposed by the homeowner’s lenders before it could get approved. A good story will help a lot. Keep in mind that there are exceptions to rules. Gainesville short sale agents have had short sales approved despite not meeting the guidelines.

Make sure that you pass the hardship test or, otherwise, you may have to directly participate financially in the short sale. This is not always the case. But it would be good to prepare them for the worst case scenario and then negotiate for the best outcome.

If you persevere and focus your time and energy to the process, your Gainesville short sale agent can get even the most challenging and troublesome short sales approved. But of course, much of the outcome rests in who owns the note, as each lender has their own regulating policies. Even so, the Gainesville short sale agents have been able to get exceptions to those rules.

It is a long-term and common belief among sellers and agents that whoever the sellers are paying their mortgage payments to owns the note. That is not typically the case. What they don’t know is that these notes are being sold over and over again and they usually do not change the servicers. They need not notify you when your note gets sold. However, you must be notified when your servicer is changed.

The servicer may or may not own the note. Before pricing a house or taking a listing, it is important to find out who the note owner is. Getting this information will help determine how negotiations would be handled and what the note owner would expect in a short sale.

The servicer definitely doesn’t want you to go above their heads to the note owner. The note owners hire servicers to take charge of daily operations of payments and other servicing details. If you are an agent, you may or may not get this information when you call the servicer.

Servicers usually disclose the note owner only to the homeowner. The best thing you could do as a seller is obtain this information through the calling the servicer. Alternatively, you may send a written request to the servicer through a Qualified Written Request (QWR).

At present, Fannie Mae or Freddie Mac owns the majority of notes. They are buying up all the toxic mortgage backed securities. There is a high chance that you have a note owned by Fannie or Freddie.

Other Articles to Read:

Bank of America’s Cooperative Short Sale Program

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sales – What is HAFA?

Gainesville Short Sales – What is HAFA? HAFA Program…an alternative option to foreclosure. Foreclosure is a very difficult experience for a homeowner to endure. If you are a homeowner facing foreclosure we understand that exploring all alternative options is very important. We are fortunate that there are alternatives out there when facing foreclosure.

A short sale on your home is normally the best alternative for foreclosure for most homeowners. If you are in the process of doing a short sale or deed in lieu on your home, and have been turned down for a loan modification, there is a program out there offered by the government called the HAFA Program.

HAFA stands for “Home Affordable Foreclosure Alternatives”. The Treasury Department introduced the HAFA Program in 2009, as an option for homeowners that were not able to keep their home through the existing HAMP Program, which stands for “Home Affordable Modification Program”. The HAFA Program took effect on April 5th 2010 and will continue through December 31, 2012.

The HAFA Program was designed to compliment the already existing HAMP Program or “Home Affordable Modification Program”. This program was set up to provide an alternative option for current homeowners who are HAMP eligible however, still for whatever circumstance is not able to keep their home. HAFA uses the homeowners financial and hardship information that was already collected when the borrower applied for a loan modification.

HAFA allows the homeowner to receive pre-approved short sale terms before listing their home and allows the homeowner to be released from liability down the road on their first mortgage note.

HAFA Program provides the borrower (homeowner) financial incentives, if they qualify for this program. A few of the incentives include a relocation assistance package of $3,000, administrative and processing costs of $1,500 to the servicers handling the short sale and up to $2,000 for investors who give a total of up to $6,000 in short sale proceeds. These proceeds are to be given to subordinate lien holders.

The HAFA program has requirements for all servicers that participate in the HAMP Program. HAMP program participants will need to implement HAFA in accordance with their own written policy. This will also need to be consistent with the investors guidelines. In short policies and guidelines may vary per financial institution.Each financial institution is given the opportunity to make their own interpretation of the HAFA guideline book.

HAFA Program guidelines have changed twice since January and there is always a possibility for more change. We cannot stress the importance in making sure that you do your homework, and choose an experienced and knowledgeable licenced real estate agent. This is important because not just any agent will be able to maneuver you through the process of a successful short sale, and other foreclosure options.

When dealing with government programs there is a lot of red tape to get through, and time lines to meet. To find out more about the HAFA Program and other alternatives to foreclosure contact our office with any and all questions that you may have. Our agents are experience and knowledgeable in short sales and programs like HAFA.

Other Articles to Read:

Loan Modifications For Gainesville Short Sale

Banks Are Calling Homeowners To Solicit Short Sales

What Gainesville Underwater Homeowners Say

Short Sale Agents in Gainesville Encourage Homeowners To Take Action

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

6

Why Don’t I Just Let the Bank Foreclose?

If you are a homeowner in distress, foreclosure should be the last option you consider. If you have closed a successful short sale you should receive a 1099 in the mail. Everyone who has sold short their home receives a 1099 for the difference of what they owed on their mortgage and what it sold for. However, if you lived in your home for 2 out of 5 years you may qualify for The Mortgage Forgiveness Debt Relief Act. This will allow for that debt to not be held against you for when you file your taxes.

The Mortgage Forgiveness Debt Relief Act is currently in place through 2012, meaning your Gainesville short sale must close prior to the end of 2012. Visit www.irs.gov or speak to your CPA to find out additional information. The act will allow for the debt to be forgiven and secondly, the bank will also forgive you for that loss and will not seek a deficiency. Florida is a deficiency state which means they can come after you for the loss you still owe them.

In 90% of our Gainesville short sales we have been able to negotiate the waiver of deficiency. This is not a guarantee and it is based on each seller’s own unique circumstances. If you qualify for HAFA, the program will give a release of deficiency as part of the program guidelines. It is easier to have a deficiency waiver if you financially insolvent or if you are unemployed. If you have money, many times the waiver of deficiency is subject to a cash settlement. You may be offered 2 different cash settlements. One will be for a lower amount, for example $5,000 cash to close, while the other may be $10,000 at 0% interest with payments of $55 over the course of 15 years.

These are much better reasons than to do a foreclosure in Gainesville. Take into consideration this scenario:

Let’s say you owe $250,000 on your Gainesville home, you bought it for $278,000 and it is now worth $150,000. A $100,000 difference in what you owe the short sale bank and what the home is worth. A buyer contracts on your home for $150,000 and the short sale bank agrees to the short sale, agrees to waive the deficiency but comes to you and asks for you to come to closing with $5000 or take a unsecured note for $10,000 at 0% interest payable over 15 years at $56 a month.

You say no and the home ends up in foreclosure, is resold after being carried by the bank for a year from the foreclosure date to resale. In the interim the Gainesville home deteriorates slightly from nobody living in it and causes the value to go down by 15% and the sales price is $127,500. The short sale bank incurred taxes of $2800, attorney’s fees of $12,000, Realtor commissions of $7,600, carrying costs of $3300 for utilities for the year and $3500 in miscellaneous expenses. The $100,000 difference in the short sale price to what was owed is now $151,700 that the bank may seek a judgment against you for that amount. This is a big difference between possible out of pocket costs and not to mention how your credit will be affected. Keep in mind if you foreclose and a judgment is sought, your wages may be garnished. Certain criteria must apply for this to happen. Please seek legal advice from an attorney.

Credit should be another consideration. With a Gainesville FL foreclosure it is listed on your credit report as such and you will have to wait 5 to 7 years to purchase another home. With a short sale, the bank will report paid in full as agreed or paid less than agreed and you will have the ability to purchase again with FHA in 2 years after the short sale.

 

Other Articles to Read:

Gainesville Homes For Sale Report On Short Sale Alternative Right Party Contact Program

3 Questions to Ask Before Hiring Gainesville Short Sale Agent

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

 

Call Stephanie Anson today at 352-535-0620 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-535-0620 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents