short sales powerpoint

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Short Sales:

Short Sales How to do a successful short sale

Distressed Properties:

Distressed Properties 1 in 7 home owners around the country are in a distressed situation. Look at your neighbors…. If it’s not them…. It’s you!

Patience…… :

Patience…… You’ll need it!

What is a short sale? :

What is a short sale? A short sale is a negotiation between a home owner and a buyer with final approval from the mortgage company; for the sale of property less than the pay off amount. Example: Home owner paid: $300,000 Currently owe: $280,000 A short sale would be for a sale for any amount less than $280,000.

Who qualifies for a short sale? :

Who qualifies for a short sale? What are some acceptable seller hardships? Behind on your payments Mortgage adjustment (ARMs, 80/20, interest only loans) Military orders out of the area Loss of employment Relocation for employment Overwhelming Medical bills Serious injury Business failure Divorce or legal separation Excessive debt Death of a spouse Damage to property insurance won’t cover

Who does not qualify as a short sale? :

Who does not qualify as a short sale? If the value of your home has dropped, but your balance is still higher than the value, this alone is not a reason a bank will accept for a short sale. If you want a larger home, you may not qualify. If you have excessive savings, bonds, investments or other property of value, you may not qualify. (Generally, retirement savings and college accounts will not count against you.)

Does a short sale hurt my credit? :

Does a short sale hurt my credit? Yes, it will. But not nearly as bad as a Foreclosure or Deed in Lieu (DIL) . Credit harm: Short sale: 2-3 years on credit history DIL: 3-7 years on credit history Foreclosure: FOREVER! Do you have a security clearance with the military or other company? (see your CO or legal department) A foreclosure or DIL will harm your security clearance; a short sale will not.

Why bother with a short sale? :

Why bother with a short sale? Isn’t it easier just to file bankruptcy than go through a Foreclosure or file a DIL ? Sure, a short sale is a long process, but consider the consequences: after a DIL or F oreclosure , your credit rating may suffer, forcing you to pay higher interest rates on credit cards, higher down payments on purchases, and you may have difficulty obtaining future financing or even lose your security clearance.

Who pays what in a short sale? :

Who pays what in a short sale? A distressed seller generally has little money to work with. In a short sale the bank most often pays the agent commissions , closing costs, filing costs and maybe some repairs. A distressed seller may have to pay for things like Homeowner Association fees and documents, continued home care, some utilities, attorney consultation fees, home owners insurance and taxes (see your loss mitigation paper work)

But… Did we mention you’ll need:

But… Did we mention you’ll need Patience?

If I need a short sale, where do I start? :

If I need a short sale, where do I start? First: Call your mortgage company and ask for “ Loss Mitigation ” Ask: “Do I qualify?” “Can you send me a Short Sale package?” When it comes; read the package! Next step: Call Us! Our goal is to guide you through the short sale process. We are real estate agents; not CPA’s or attorneys. Akiko Fields 757-580-4398 Connie Whitaker 757-717-7117 Mary Kiddy 757-636-8524

MARS Disclosure::

MARS Disclosure: The FTC is issuing the Mortgage Assistance Relief Services (MARS) Rule to protect distressed homeowners from mortgage relief scams that have sprung up during the mortgage crisis. Bogus operations falsely claim that, for a fee, they will negotiate with the consumer’s mortgage lender or servicer to obtain a loan modification, a short sale, or other relief from foreclosure. Many of these operations pretend to be affiliated with the government and government housing assistance programs. The FTC has brought more than 30 cases against operations like these, and state and federal law enforcement partners have brought hundreds more. Advance fee ban - The most significant consumer protection under the FTC’s new rule is the advance fee ban. Under this provision, mortgage relief companies may not collect any fees until they have provided consumers with a written offer from their lender or servicer that the consumer decides is acceptable, and a written document from the lender or servicer describing the key changes to the mortgage that would result if the consumer accepts the offer. The companies also must remind consumers of their right to reject the offer without any charge. Disclosures: The Rule requires mortgage relief companies to disclose key information to consumers to protect them from being misled and to help them make better informed purchasing decisions. In their advertising and in communications directed at individual consumers (such as telemarketing calls), the companies must disclose that: they are not associated with the government, and their services have not been approved by the government or the consumer’s lender; the lender may not agree to change the consumer’s loan; and if companies tell consumers to stop paying their mortgage, they must also tell them that they could lose their home and damage their credit rating. Companies also must explain in their communications to consumers that they can stop doing business with the company at any time, can accept or reject any offer the company obtains from the lender or servicer, and, if they reject the offer, they don’t have to pay the company’s fee. The companies also must disclose the amount of the fee. Prohibited claims. The MARS Rule prohibits mortgage relief companies from making any false or misleading claims about their services, including claims about: the likelihood of consumers getting the results they seek; the company’s affiliation with government or private entities; the consumer’s payment and other mortgage obligations; the company’s refund and cancellation policies; whether the company has performed the services it promised; whether the company will provide legal representation to consumers; the availability or cost of any alternative to for-profit mortgage assistance relief services; the amount of money a consumer will save by using their services; or the cost of the services. In addition, the rule bars mortgage relief companies from telling consumers to stop communicating with their lenders or servicers. Companies also must have reliable evidence to back up any claims they make about the benefits, performance, or effectiveness of the services they provide. As realtors, we will uphold the new FTC ruling for the Mortgage Assistance Relief Services rule. With the rise of many distress home owners, new companies formed with only an interest in making a profit, and not you, the homeowner. These companies were offering ‘mortgage relief’ services. The scam was to take money up front to arrange short sale programs for your home, then not fulfill their obligation, and allow the homeowner’s home to fall into foreclosure. As of January, the FTC requested realtors to uphold this law. As of July, they rescinded the rule for realtors. We will continue to uphold this law as we are working on the behalf of the homeowner.

MARS:

MARS Long and Foster Real Estate is not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit. Federal Trade Commission MARS rule (16C.F>R &322 et seq.)

If you know of anyone that could use our help in the matter of short sales, please give them our information! :

If you know of anyone that could use our help in the matter of short sales, please give them our information! Long and Foster Real Estate, I nc. Lynnhaven Office, 562 Lynnhaven Parkway, Virginia Beach, VA 23452 757-306-7653

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