Short Sales: A Solution for Qualified Homeowners The Foreclosure Forum: Mark Greene with Elite Lending Short Sales: A Solution for Qualified Homeowners

A Short Sale occurs when The Foreclosure Forum: Mark Greene with Elite Lending A Short Sale occurs when The value of a property is less than the total amount required to sell the property AND The lender(s) accept less than what is owed to allow the sale of the property

Does Your Property Qualify? The Foreclosure Forum: Mark Greene with Elite Lending Does Your Property Qualify? Is there any equity in your property? If yes, you do not qualify. If No, you may qualify 1st mortgage only – best chance 1st or 2nd mortgage – good chance Other liens – must be reviewed

The Foreclosure Forum: Mark Greene with Elite Lending Do You Qualify? ACCEPTABLE HARDSHIPS: Unemployment - Lessened Income Excessive Obligations - Military Service Unable to Sell - Unable to Rent Payment Adjustment - Death of Principal Borrower Serious Illness - Job Transfer Business Failure - Marital Problems Fraud - Incurable Property Problems You understand you will not receive any money from the sale of the property You understand that there is no guarantee However, your Realtor will work diligently to close a successful short sale transaction

The Foreclosure Forum: Mark Greene with Elite Lending Required Documents You must provide the lender with Current bank statements for all of your accounts Current pay stubs Last 2 yrs. Tax returns & W2’s Personal financial statement Hardship letter Last Mortgage Statement(s)

Benefits to You (the Homeowner) The Foreclosure Forum: Mark Greene with Elite Lending Benefits to You (the Homeowner) Greatly reduces damage to your credit The worst credit hit is Foreclosure Stays on credit for 10 years Short sale results in late payments with satisfactory settlement of loan(s) With Short Sale, credit starts improving quickly after 12 months No embarrassing public notices and Foreclosure For Sale signs Generally no Deficiency Judgment

Foreclosure vs. Short Sale Future Outcomes Credit Foreclosure vs. Short Sale Reduces credit score from 150 to over 300 points. Typically will affect scores for over 3-7 years Will be shown as paid or negotiated, lowering your credit as little as 50-75 points if all other payments have been made. (Late payments will still show) Typically will affect scores 12-18 months

The Foreclosure Forum: Mark Greene with Elite Lending More Benefits to You IRS income will be excused if this is your primary residence IRS income may be excused for an investment property. Form 982. No cost to you! Realtor’s commissions, processing fee, and closing costs are paid by the lender Outstanding Property Taxes are paid by the lender at closing

The Foreclosure Forum: Mark Greene with Elite Lending Consequences Possible Deficiency Judgment This is very uncommon If not your primary residence,1099-C may be issued by lender for difference between amount received and amount owed. Always consult your accountant or tax attorney for any questions

The Foreclosure Forum: Mark Greene with Elite Lending FAQ’s How long does a Short Sale take? It may take up to 4 months and you may remain in the house Must I clean up and fix the house? NO! But please provide detailed list of any needed repairs or problems I stopped making my payments and the bank calls every day. The calls will diminish once the process is started.

The Foreclosure Forum: Mark Greene with Elite Lending More FAQ’s I’ve been served with Foreclosure papers Notify us immediately, provide all the paperwork and we will assist you. I put money down when I bought this house, can I get any money at closing? No! If the lenders agree to accept less than what is owed to them they will not allow you to benefit monetarily.

The Foreclosure Forum: Mark Greene with Elite Lending When do we start? NOW! Work with your Realtor and sign the Listing Agreement Borrower’s Authorization Homeowner’s/Seller’s Disclosure Provide your Realtor with all mortgage statements and HOA coupons, if applicable Get together Required Documents Your Realtor will begin processing your short sale.