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1. NO UPFRONT MONEY OR FEES REQUIRED FROM YOU!
2. I can help you eliminate mortgage debt and ongoing payments.
3. I can help you remain in the property during the process without making payments. (The
only way to benefit financially in a short sale.)
4. I will help you negotiate with your second lender for pennies to the dollar.
5. I can help avoid the need to file bankruptcy altogether -
it's possible that in as little as two years time, you can find yourself “normal” again.
6. I can help you take advantage of the government's “Mortgage Forgiveness Debt Relief Act and Debt Cancellation” Program.
7. I will negotiate directly with your lender/s. I control all of my short sales.
8. If you are late on payments now, I can get the Bank OFF YOUR BACK!
9. I can help you find another home afterwards. I am a full service real estate agent. There are “rent to own” options. And please see my other web page that talks about my “Short Sale and Buy Program.”
10. I don't want to buy your home. I am not an investor. Saving you from foreclosure is my FOCUS.
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Times are tough for many homeowners.
Home values have declined significantly
these last few years. Millions
of Americans are facing foreclosure.
I can help if you are one of them.
One of my goals in life is to help as many
people as I can. Through my experience as a
real estate agent I've helped put
many smiles on many faces.
After visiting my website and reading the
information, please call me if you have any
questions. Just take a few seconds to enter
your contact information for a free,
no-obligation confidential consultation.
No one will work harder or more professionally than I will to earn your smile and handshake for a job well done.
Rosanne Rojo
Disclaimer: Please keep in mind that I'm not
an attorney or tax professional. I highly recommend
that for the best and latest information regarding your
individual tax, home ownership, and financial situation
that you contact a tax professional or an attorney who
specializes in these matters. Please use the information
below as a general guide.
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1. What is a Short Sale?
2. When is a Short Sale an option for you?
3. Selecting a real estate agent with the right background and experience
4. Exploring alternative options with the real estate agent
5. Communicating with the lender(s).
6. Being fair to all parties
7. The offer to purchase
8. Why choose me?
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A short sale is when a homeowner facing foreclosure
sells his or her property for less than what is owed to the mortgage lender. The sale has to be approved by the lender.
Short sales have become very popular these days. There
are several reasons why they are so prevalent right now.
In some instances homeowners with adjustable-rate
loans can't make the payments when their interest rates
rise; others fall behind because of job loss, others
because of a divorce or sickness.
A lot of homeowners have seen their homes' values drop
and when they want to refinance. The surprise hits them
square in the face. Their home cannot be refinanced
because the appraisal for the refi is below what is needed to refinance the entire loan.
What are the advantages and disadvantages of a short sale?
A short sale will be less damaging to your credit score
than a foreclosure. Just try to have a normal life with a
foreclosure on your record... It's almost impossible to rent;
finance a car; future job applications; etc.
Simply put, you will be paying trough the nose next
time you want to finance a car. Sure they will give you a loan to buy one but, you will be paying astronomical payments.
If you are a buyer looking to cash in, doing short sales, is not necessarily a time to “steal” a property. Lenders aren't stupid, they want to get market value for their properties, not give them away.
There is a balance just like other types of real estate
investments. A short sale could be your best tool to acquire
great bargains out there but you must have patience,
determination and a good real estate agent on your side.
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The Home's Market Value Has Dropped.
The bank will do an REO (real estate owned) appraisal
commonly known as a “BPO” (Broker Price Option).
The property has to appraise LOWER than what you owe
to the bank.
The Mortgage is in or Near Default Status.
Sometimes lenders will consider a short sale if the payments
are current -- then you will have to prove to them that a
short sale is the only option for you besides a foreclosure.
Typically a homeowner has to be 30 days or more late on
their mortgage payments for a lender to start paying attention to you. Occasionally there are times when a short sale is possible at the last minute, even when a foreclosure date has been set by the court.
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This is probably the most important step by the seller:
Choosing the RIGHT agent to represent you and do
the job right! The process of a short sale is
complicated and time consuming.
A sign that your real estate agent isn't the one to do a short sale is when they will ask you for the listing to be signed
without any questions or verifications that you may
qualify for a short sale. Please understand that
“short sales” is a new experience for most real estate agents.
We have been forced to do short sales by the current
sub-prime mess. Very few real estate agents are even
qualified to do one. A knowledgeable and experienced
real estate agent will ask the seller to furnish a number
of documents - closing documents; income tax returns;
bank statements; paycheck stubs; in addition to other
documents. All these supporting documents and your
current situation should be scrutinized by your agent.
A foreclosure is looming on your record - make sure
you have the right agent to handle your short sale to avoid it.
REMEMBER . . . You are trying to SAVE YOUR HIDE!
Demand good service. . . . your family's future is at stake!
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Another part of the process is for your real estate agent
to discuss with you the various options available other
than what a short sale has to offer. Things to consider
are deed in lieu of foreclosure; bankruptcy; borrowing
money from private individuals; renting the property; etc.
Community Action Agencies throughout the country were
put in place to protect it's citizens from “shark investors”
or even real estate agents with good intentions that don't
have a clue.
The U.S. government has instituted various programs
to help distressed and “under water” homeowners.
Make sure you explore those options (and click to other
parts of my website to read about some of the programs
and to watch a U.S. government video about “short sales”).
Two very useful publications for mortgage debt tax
relief qualifications can be ordered for free by phone
from the IRS that better explain these tax rules at:
1-800-829-3676
Mortgage relief for acquisition debt tax:
IRS publication form 982
Insolvency and the laws about tax relief from it:
IRS Publication form 908
You can visit a special government website setup just for homeowners in distress:
www.MakingHomeAffordable.gov
Call their U.S. government's homeowner's HOPE hotline:
(888) 995 - HOPE (4673)
If you are thinking about bankruptcy, it is very important
you understand how bankruptcy works. There are
several different "chapters" of bankruptcy. Some are
"work-out of trouble" and others are "wipe-out debt."
You should consult with a tax professional or
attorney who specializes in these matters for the
best advice. The information provided here should
only be used as a general guide and not relied upon
to make your vital financial decisions for yourself and
family.
Another important factor, if the lender agrees to the
short sale, the lender may possess the right to issue you
a 1099 for the shorted difference - in other words -
you still have to pay the bank!
Due to a provision in the IRS code about debt
forgiveness, many situations are exempt from debt
forgiveness - But then again, you will need to speak
to a tax accountant to determine the amount of short
sale tax consequences.
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An authorization for the person that will do the negotiating
with the bank should be signed by all parties in the
mortgage. The lender will request a hardship letter.
A hardship letter tells the lender why you are not making
their mortgage payments.
They will also request bank statements to provide
them proof of how much cash you have and pay
stubs for at least the few months. If you are
self-employed, you may have to provide proof of
income by your deposits to the bank with copies of
the checks payable to you, etc.
You real estate agent should be able to put all
this together, so please be prepared to be open.
Please understand this - It is like you are putting
an application to purchase a home. ..
IN REVERSE!
Your bank wants to see that you simply cannot afford
the home anymore. Your bank has to be assured that
IF the short sale is denied - you will go to foreclosure,
period.
A HUD-1 together with the listing agreement and the
offer for the property is next. Your real estate agent
should put this together in a neat package.
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It usually takes 7 to 14 days for a bank to just put
the package submitted into their system; only then
is a negotiator assigned to your case. In some cases
negotiators have up to 4 more weeks to order the BPO
(Broker'fs Price Opinion). A “BPO” is basically a real
estate agent hired by the bank to come out and give
their opinion on what the house is worth. Some banks
are now doing a complete REO (real estate owned)
appraisal by a professional certified appraiser.
One of the keys to a short sale is the BPO.
You want to prove during the BPO that your property
has considerably lost value. If your house needs a new
roof or has water problems in the basement - now is
the time to bring that for consideration. Your agent at
this time will bring any sales comparables that will
support the new sales price.
Important point: The bank will not deny a
SHORT SALE because of how much money they will
be losing - they will always consider a short sale
based on the ACTUAL value of the property!
A point that your agent has to bring to the lender
package is: show the bank why it is to their
advantage to accept a short sale instead of a foreclosure.
A foreclosure to the bank is disadvantageous for
many reasons. Your bank is in business to make
money. Does it make financial sense for the lender
to accept this short sale?
A good agent will convince them of that - so you
can ultimately AVOID A FORECLOSURE ON YOUR RECORD.
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Sellers benefit from a short sale. So sellers have certain obligations.
Number one: the seller should maintain the property in such a fashion that it will insure the highest price for the property during the listing period.
As your agent, my #1 obligation throughout this process is to YOU. No one will work harder or more professionally that I will to assure your satisfaction.
So I ask my sellers to join with me to achieve their goal of avoiding a foreclosure.
Today, “buyers are kings” - and they know it. With so many distressed properties on the market, we as a “team” need to do everything possible to make your home “shine” above all the others competing in the same neighborhood and in the same price range, don't we?
I always say to my clients a short sale is a WIN-WIN-WIN for all parties:
A WIN for you as a seller: The lender forgives thousands of dollars to you in mortgage payments and you walk out avoiding a foreclosure. It will be a “graceful exit”.
A WIN for the buyer: Excellent opportunity to purchase a home at a great price in today's market.
A WIN for the bank: Excellent opportunity to recover part of their investment without hiring attorneys and going to foreclosure.
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As soon as the offer arrives, your agent should determine: what are the chances that the offer will be accepted by the bank.
With short sales, buyers are looking for bargains. They may make offers that are very low compared with the surrounding comparables and the over-all market value of your house. A lender sometimes will decide financially that it is a better situation to foreclose on the property than to approve the offer.
A knowledgeable and experienced real estate agent does know when an offer is being “low balled.” At that point your agent should advise you to accept it, reject it, or counter it. Depending on your situation, it does not hurt to counter-offer and qualify the buyer making sure he /she is going to come to the closing.
If I send a low ball offer to a bank, I run the risk of alienating the lender into thinking that we are taking advantage of them. Ultimately that could hurt your chances of having a short sale accepted. Your agent should protect you and give you the highest probabilities of getting the short sale accepted.
There are agents working with investors putting together dozens of offers every single day. Your agent should shield you from them unless it's a last case scenario to avoid foreclosure.
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As a real estate agent involved with short sales, I see many instances where the homeowner gets into trouble by accepting the help of someone that wants only to help themselves.
If you are facing foreclosure, more than likely you will be contacted by “strangers” wanting to help you out of your situation. I know that some of these companies or individuals could mean well. Unfortunately, too many are swindlers preying on desperate homeowners for their own benefit.
I chose to be involved with short sales because of my deep-felt desire to assist homeowners, like you, avoid foreclosure.
If you are reading this, sadly, you are having some troubles. Bad things happen to good people. You are not alone. It is estimated that more than a million homeowners will be foreclosed before this sub-prime mess ends.
One of the hardest steps to take is to realize that you simply need help. The quality of the help you seek will make a difference in the end.
Here are a few things to look for in determining if someone is “really” trying to help you...
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DON'T SIGN any papers that you don't fully understand, or your situation could be worse.
DON'T SIGN any papers in which you feel that you are being pressured to sign.
DON'T MAKE mortgage payments to anyone other than your lender.
DON'T SIGN over the deed without some agreement for your protection. Talk to your attorney or tax professional if you need help.
DON'T EVER pay anyone who claims to stop foreclosure. There are many free services offered by local, state, and the federal government. You will find some of those resources on other pages on my website.
I hope the information on my website will be helpful if you are facing foreclosure. The most important person for me is the client that I am currently assisting at any given time.
I value you as a client and I hope that you will consider me if you decide to take the next step. Please call for a free, no-obligation and confidential consultation.
From my part - I sincerely appreciate the opportunity to be your trusted real estate investment advisor and resource. If you know of anyone else who could benefit from the services I provide, I would sincerely appreciate the opportunity to be of assistance to them as well.
“No one will work harder or more professionally than I will to earn your smile and handshake for a job well done.”
“Please call or email for a free, confidential and no-obligation consultation.”
Rosanne Rojo
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