Welcome to HER Realtors

04/13/23 1

19561956 Founded in Columbus, Ohio by Harley E. Rouda, Sr. (HER)

1960s 1960s Becomes Central Ohio’s No. 1 brokerage, and remains to this day

20062006 Named the Most Productive Agents In The Nation – REALTOR®

MAGAZINE

2009-132009-13 Named Best Real Estate Brokerage by Columbus CEO Magazinefive years in a row

20122012 Realty Services merges into HER Realtors to become the largest brokerage in the region

HER RealtorsCincinnati – Columbus - Dayton

Equal Housing Opportunity

Everyone benefits from an openhousing market. Restrictions limit the pool of homes for sale and hinder those who are hoping to sell.

Federal Law – Right of Every Buyer.

Our offices….. Our Agents55 offices….1000+ agents…10 MLS areas

What does this mean for you?

Most buyers request a Home Warranty from the seller. Homes with warranties tend to sell faster and for more money. Put our HMS HomeGard Coverage in place during your listing period.

HER Realtors has joined forces with pmac Lending Services, one of America’s premier lenders to provide great rates, superior service and convenience of one-stop-shopping.

Our title representatives have offices in or near almost every HER location to provide you with one-stop-shopping. We can offer a preliminary title search to ensure there are no surprises that could delay closing.

“One-Stop” Real Estate Experience

Serving Ohio and Kentucky Clients

Credentials

• Real Estate Agent with 8+ years of experience

• Attorney with 17 years tax, contract, real estate experience

• Specializing in Target Marketing with Results

• Technologically savvy

• Specialist in Short Sale and Distressed Situations

• Licensed Attorney-Michigan

• Licensed Realtor- Ohio, Kentucky

Paul Sian

Realtor, Attorney

Disclaimer:Nothing in this presentation is intended to be legal advice. Legal advice is often fact and circumstance specific. If you are in need of specific legal advice please seek

legal counsel.

Short Sales for home owners

• A situation where the homeowner needs to sell the house but may not be able to pay back all amounts owed on the house from the sale.– This could be because the price the house will

fetch on the open market is less than what is owed.

• Used as an alternative to Foreclosure.– It is cheaper for the bank to have a short sale than

process a foreclosure.

What is a Short Sale?

• The remaining amount which the owner is unable to be pay back is called the “deficiency” amount.

• Short sale is used as an alternative to foreclosure as a cost savings measure.

• All lenders who will receive less than what they are owed in the sale must agree for the short sale to happen.

What is a Short Sale?

• Start by getting an idea of what your home may get on the open market to make sure you are truly underwater on the mortgage.

• Prepare a letter explaining why you need the short sale. (due to unemployment, reduced income, medical emergency, death, divorce etc.)

• Talk to a Mortgage Counselor to understand all your options.– HUD.gov provides list of approved mortgage counselors by state.

How do you Short Sell your house?

• If a short sale is needed then call up your lender and speak with their Loss Mitigation Department to ask about short sale options.

• Anyone negotiating (realtor, attorney, accountant) with the lender on your behalf will need some sort of seller authorization to represent form. Check with your lender if they have a specific form.

How do you Short Sell your house?

• Generally the lender is going to require that the home owner prove financial hardship.– The lender will look at all your assets and debts

together to demonstrate financial hardship.– Paying your mortgage on time does not

necessarily disqualify you.– Your mortgage counselor and/or you lender will

want to see your financial picture through documentation. (see attached list of suggested documents needed)

How do you Short Sell your house?

• If you have multiple loans on your home (1st, 2nd mortgage, HELOC) you will need to coordinate the short sale with all lenders who will be asked to take less than they are owed.– If your 1st mortgage will be paid off in full but you

are only asking your 2nd mortgage to take less then only need permission from the 2nd mortgage holder for the short sale.

How do you Short Sell your house?

• Do you qualify for Home Affordable Foreclosures Alternatives Program (HAFA)?– Government run program to help avoid

foreclosures.– Can be used for mortgages that are owned or

guaranteed by Freddie Mac, Fannie Mae and 100+ private lenders.

– Certain minimum requirements (see attachment).

– Banks still need to give ok to participate.

How do you Short Sell your house?

• HAFA Benefits include:– Complete release from mortgage debt after sale.– Less negative effect on credit score than

traditional short sale.– HAFA may provide up to $3,000.00 in relocation

assistance.

• Link for more HAFA info toward the end of presentation.

How do you Short Sell your house?

• Veterans Administration loans (VA)– Have a short sale program referred to as

“compromised sales”.– VA will make whole the private lender who lent

money under VA loan after short sale closed.– VA usually will not pursue the Servicemember for

the deficiency.• Further VA eligibility is decreased based on the

deficiency so they may not be eligible to do VA financing unless they pay it back.

How do you Short Sell your house?

• Short sales process is slow until an offer is approved by the lender.– Usually the short sale approval letter lasts for only 30-60

days. So you must act fast!

• Short sale buyer can ask for inspection prior to or after approval of the offer.– Prior to wastes less time.– After buyer can walk away in case of major issues with

house. i.e. foundation, water issues…

Short sale was approved by lender, now what?

• If your lender reports your debt as “settled” or “renegotiated” (and they most likely will) your credit score will go down.– This will affect your ability to borrow money in the

future and can affect anything else credit related as well (apartment rental, car loans, utility bills usually run credit checks).

Long term effects of a short sale

• Make sure you get a release from all lenders associated with your house.– No release, you still owe them.

• Forgiven debts can have tax consequences.– Prior tax relief law has expired.– Consult with tax attorney or accountant to

determine your tax liability.

Long term effects of a short sale

• There are many scam artists out there.– Review credentials if someone approaches you.– Don’t take their word for it. Confirm with

government or third party websites.– Approved mortgage counselors are found on

government websites and are a better source of information and help.

Be Wary of Scams!

• www.HUD.gov/offices/hsg/sfh/hcc/hcs.cfm (for a list of HUD approved mortgage counseling agencies by state)

• For VA loans involving short sales search for “Compromise Sales” www.benefits.va.gov

• www.makinghomeaffordable.gov has info on HAFA, list of mortgage servicers who may do HAFA, and more.

Useful Links

My contact info:

Office Phone:513.752.8200

Cell Phone: 513.560.8002

E-mail: Paul.Sian@HERrealtors.com

Facebook: www.facebook.com/paulsian

LinkedIn: Paul Sian

My Web Site: www.herrealtors.com/paulsian

My Blog: www.cincinkyrealestate.com