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

2. 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

3. 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

4. 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

5. 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)

6. 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

7. 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 points if all other payments have been made. (Late payments will still show)
Typically will affect scores months

8. 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

9. 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

10. 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.

11. 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.

12. 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.