What is a Short Sale? If you have to sell your home and you want to avoid continuous late mortgage payments and/or a foreclosure then a short sale is one option. A short sale is when your mortgage company accepts less than what is owed. To cut their losses lenders will accept less for a property than the loan value. In some cases a short sale is less expensive and easier for the bank than foreclosing-especially if home prices are declining.
What are the drawbacks? You can spend countless hours researching to find out how a short sale will affect you credit. Based on every credible source we have checked - including Fair Issac's own website, we have always been told that the bottom line is this - a foreclosure is more damaging than a short sale. The impact to credit scores diminishes over time. The Internal Revenue Service may treat the difference as taxable income and issue you a 1099C statement. However, the Mortgage Forgiveness Debt Relief Act of 2007 might prevent you from being taxed. December 20th 2007, the president signed IRS Revision Bill HR3648 into law. Please consult a professional tax advisor.
What are the advantages? It is less damaging than foreclosure. The homeowner can avoid bankruptcy. The homeowner can get out of a dire and stressful situation commonly caused by job loss, divorce, a sudden drop in income, or the inability to meet rising payments of an adjustable mortgage.
How much does this cost? The bank pays our commission and fees.
What are the alternatives? Foreclosure, bankruptcy, finding another person to assume your loan, deed in lieu of foreclosure, forbearance, loan modification, refinance, reinstate your loan, contact a HUD-approved Housing Counseling Agency,Home Owner Recovery Act of 2008. This new bill will allow a qualified home owner with the lenders approval, to refinance their home at 90% of the homes newly appraised value. There is one caveat to this new program-the home owner will be required to share in the future appreciation of the property with the government.
THERE IS HELP AVAILABLE-YOU HAVE TO MAKE THE CALL! 314-877-8506
As you probably already know, once a foreclosure has occurred, the foreclosure sale notation may remain on your credit report for as long as ten years, severely restricting or inhibiting your ability to apply for other types of credit. Worse yet, it may also provide a real roadblock when you later try to buy a home.
What you may NOT be aware of is that you do have options. Papasan Properties Group has helped numerous homeowners around the St. Louis /St. Charles MO metropolitan area stop foreclosure and stay out of trouble. We are proud to provide you with THE MOST COMPLETE AND BEST solutions in the Saint Louis / St. Charles MO area so you won't need to remain hopeless and lose sleep over your situation. As the real estate market in Saint Louis/St. Charles area continues to soften, we expect an ever increasing number of homeowners to be faced with the possibility of being unable to sell and/or foreclosure.
We're here to help now. Remember, regardless of how hopeless things may seem, you DO have options right now. You don't have to watch your home get taken from you. It's time for YOU to decide to take action and call us today at 314-877-8506.
"It is also a common mis-conception that you must already be behind on your payments in order to begin the short sale process with your lender."
Many people facing foreclosure become paralyzed and simply freeze, do nothing to resolve their situation, and hope for a financial or other miracle. Please Don't fall into that trap!
Just because your lender hasn't sent you any formal notices or has stopped calling doesn't mean that they have granted you relief. In many states, including Missouri, there is only a 21 day period that your lender has to announce before they can foreclose, so the longer you wait, the less options you allow yourself.
Also, beware that once the foreclosure process has begun your lender will accelerate your loan. Unfortunately, this means that they will likely no longer accept a payment less than the full amount due, including back payments. Even if you send them anything less than the full amount owed, they will likely send it back to you, asking for the entire loan balance.
Also, beware that the longer you delay, the more court costs, late charges, and attorney's fees that will be assessed against your loan balance. Please DON'T WAIT. Time is your enemy. You're taking the first major step by taking initiative. You're already better off than many others that are facing your same exact situation today! And the faster you allow us to help you, the more options you'll allow yourself!
So What Are The Options?
Often times your lender will work with you to help you get caught up on your back payments. Keep in mind that your lender does not WANT to foreclose on your house.
The bank is not in the real estate business. They are in the business of loaning money, and when they have to take back a house on a foreclosure, it looks bad on their records. Many times, if you ask them, they will work with you to help you get caught up.
For example, if your normal house payment is $1000 per month, and you're 3 months behind, sometimes the bank will allow you to make up that $3000 that you're behind over the next 6 months. Then for the next 6 months you will pay your normal house payment of $1000 per month, PLUS an additional $500 per month, until you're caught up. If you are able to make that additional payment for a while, and your lender is willing to do this, sometimes the solution is as easy as that.
However, in this situation, it is essential that you are 100% confident that you can live up to this agreement and pay ALL of your future payments on the exact due date that is agreed upon. Often, if you are even one day late on any future forbearance agreement payments, the lender will immediately initiate a foreclosure again, and you will not be given a second chance.
Papasan Properties Group can help you get through this process - free of charge and with no up-front fees!
Get Help Making Up Back Payments
Is it possible that you have overlooked a way to make up the back payments?
- Do you have a 401K you can borrow from?
- Can you borrow from friends or family?
- Do you have a credit card you can cash advance to help get you caught up?
- Can you get a cash advance at your current job?
- Do you have anything of value that you could sell or even borrow money against?
Sometimes, lenders will give you loans no matter what your current credit situation is if you have something of value to use as collateral.
Just make sure that you're not borrowing MORE money to get you FURTHER in the hole. The last thing you want to have happen is to be in this same situation 3 or 4 months from now AND owe other people money too!
Sell your house
Have you tried to sell your house with no luck? Have you even considered the option of selling? In some situations, the best answer is to just sell the house and start over fresh with something new.
More often than not, however, this is not simple task. It is very common for potential buyers to ask the sellers to fix everything in the house before they will move in. If your house needs any repairs at all, this could pose a problem. Also, as you may already know, it's pretty easy for the buyer to back out of a contract at the last minute if everything does not go as planned. Sometimes, you may even owe more on the house than it's able to sell for. (If so, refer to the "Short Sale" option below)Papasan Properties Group has the best and most experienced licensed realtors in the St. Louis area on staff to assist you in the selling of your home. And we don't just stick with the "traditional" ways to sell your house. We've got dozens of cutting edge and innovative ways to market and sell your house...ways that most traditional realtors can't even imagine! Just keep in mind that sometimes a traditional sales process can only work if given enough time.
If your foreclosure date is just around the corner and there proves to be not enough time to sell the house, we'll have an extensive network of investors who will actually BUY it! How's that for a guarantee?
Initiate a "SHORT SALE" with Your Lender
What in the heck is a short sale you may ask? A short sale is when the lender is willing to "discount" what you owe them in exchange for a total payoff, so that they don't have to foreclose.
What does that mean? Here's an example… let's say that you owe $200,000 on your home, and it's only WORTH $200,000 or possibly less. In this case, it would be difficult to sell the house fast, because you would have to find someone willing to pay full price for your home. PLUS, the buyer would have to be willing to close QUICKLY, so that you could sell the house before it goes to foreclosure.Papasan Properties Group can initiate a short sale with your lender to "create" the equity that will help sell your home quickly. Even if you currently owe more money than the house is worth! And even if it needs repairs! No matter how pretty or ugly the house is, and no matter how much you owe on the house, we can help! It is also a common mis-conception that you must already be behind on your payments in order to begin the short sale process with your lender. Don't delay, call us today to discuss your situation. 314-920-8560.
Best of all, in a short sale, the lender pays all the costs of the sale - including the commissions of the real estate agents.
Was your home listed with another agent and expired?
Was it listed and you felt that you couldn't lower the price any further as the loan balance would exceed what you would net?
A short sale is a great option for sellers who had tried to sell previously with a traditional old-fashioned agent who suggested pricing the home at a price high enough to cover the costs of the sale (including their commission). In the soft market we're experiencing in the Saint Louis/St. Charles MO metropolitan area, over priced homes are not selling. We find that we are able to quickly help sellers by correctly pricing their homes - obtaining a contract - and completing a short sale
Note: This is not a solicitation of your listing if you are currently listed for sale with another Broker. If you are listed for sale with another Broker, please have them call us with regards to our highly successful Short Sale Listing Referral Program.
Under this program, your agent can have us take over the listing and still get paid a referral fee when the transaction closes. Talk about a win-win - you get a successful sale, avoid foreclosure on your home in the St. Louis/St. Charles area, and your agent gets paid for getting you connected to the best in the business in pre-foreclosure/short sale prevention.
Refinance Your Home
In some cases, we can help you refinance your home to help you get caught up on back payments. Sometimes we can even LOWER the interest rate that you're currently paying, which will in turn LOWER your monthly payment. That may be all you need to get back on your feet. If you've seen some tough times lately, but now you have things back under control, a refinance may help you get a fresh start.
File for Bankruptcy Protection
We are not legal practitioners - and as such can not offer legal advice. Only an attorney can determine whether this option makes sense. We do know, however, that in most cases we've seen, the filing of bankruptcy only delays the foreclosure process. In fact, we have yet to see a case where the lender wasn't granted the right to foreclose by the bankruptcy court - sometimes as quickly as 91 days after filing.
In addition, the best mortgage professionals in the St. Louis market have informed us that it would be far better for a borrower who was looking to purchase in the future to complete a sale or short sale, then file bankruptcy, only if absolutely necessary and the best option for them. The reason lies in the fact that with certain loan programs, including those offered by the Federal Housing Administration (FHA), allow a buyer who has filed for bankruptcy to get a mortgage in as little as 24 months following the successful completion of their bankruptcy case.
The combination of a foreclosure and a bankruptcy extend this period well beyond 24 months. Beware, you can NOT complete a short sale - your lender will be precluded by the provisions of the bankruptcy law - from working with you - if you file for bankruptcy. If you are considering filing for bankruptcy, please consult a reputable attorney. We'd be happy to discuss the best options - including completing a short sale before filing - with you and your attorney.
I've heard enough! I'm ready for Papasan Properties Group to HELP ME! or call 314-877-8506.