Short Sales 101 For Sellers Revised 033011

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  • 8/7/2019 Short Sales 101 For Sellers Revised 033011

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    SHORT SALES 101

    FOR SELLERS

    How to Use a Short Sale to Protectyour Finances and your Credit, and

    Stop Foreclosure

    Negotiate a sale to your lender toaccept less than you own on your

    mortgage

    Written by:

    Russ Irizarry

    Licensed Real Estate Broker

    Short Sale Expert

    305-390-0574 Direct

    ishortsalefl@gmail.com

    South Florida Short SalesA registered member of the Better Business Bureau

    www.seflorida.bbb.org

    South Florida Short Sales is a Florida Licensed Real Estate Brokerage

    License # CQ1038301

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    S h o r t S a l e B a s i c s f o r S e l l e r s P a g e | 2

    South Florida Short Sales

    6538 Collins Ave #67 Miami Beach, FL 33141

    305-390-0574 Main - 786-398-4614 Fax

    Legal Disclosure Notice

    The content in this presentation is based upon our research, knowledge and experience. In

    no way is any information contained herein to be interpreted as legal or tax advice. To be

    assured of sound legal advice with regards to foreclosure, real estate, bankruptcy or agency

    laws, please employ the use of a competent legal or tax professional and/or your real estate

    broker.

    Please consult your broker, accountant and attorney, as appropriate, for advice specific to

    your situation. Although every effort is made to keep this presentation current and relevant,

    it is your responsibility to seek guidance from qualified professionals in order to keep up

    with rapidly changing market conditions and periodic changes to the law.

    Mortgage Assistance Relief Services Disclosure

    IMPORTANT NOTICE: Before using this service, consider the following information:Ourcompany cannot charge you any upfront fees in conjunction with providing you any type of

    mortgage assistance relief service. Our company is NOT associated with any government

    agency or program and our company is NOT approved by the government or your lender(s).

    You may stop doing business with us at any time with regard to the short sale, our short sale

    negotiation services (if any), or real estate brokerage services (if any). If you stop paying

    your mortgage, you could lose your home and damage your credit rating.

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    S h o r t S a l e B a s i c s f o r S e l l e r s P a g e | 3

    South Florida Short Sales

    6538 Collins Ave #67 Miami Beach, FL 33141

    305-390-0574 Main - 786-398-4614 Fax

    Table of Contents

    1 INTRODUCTION ............................................................................................................................... 4

    2 PRE-FORECLOSURE HOMEOWNER OPTIONS ................................................................................. 5

    2.1 Loan Modification ............................................................................................................... 5

    2.2 Repayment or Forbearance Plan ........................................................................................ 5

    2.3 Refinance ............................................................................................................................ 5

    2.4 Bankruptcy .......................................................................................................................... 5

    2.5 Deed-in-Lieu of Foreclosure ................................................................................................ 6

    2.6 Foreclosure ......................................................................................................................... 6

    2.7 Short Sale ............................................................................................................................ 6

    3 SHORT SALES 101 ................................................................................................................... 7

    3.1 What is a Short Sale? .......................................................................................................... 7

    3.2 Why Lenders Allow Short Sales........................................................................................... 7

    3.3 Standard Documents Required for a Short Sale ................................................................. 8

    3.4 Benefits of a Short Sale ....................................................................................................... 8

    4 PRE-FORECLOSURE TIMELINE ............................................................................................... 10

    5 FORECLOSURE vs. SHORT SALE A SIDE BY SIDE COMPARISION ............................................ 11

    6 POSSIBLE SHORT SALE OUTCOMES ....................................................................................... 13

    6.1 Promissory Note ............................................................................................................... 13

    6.2 1099C vs. Deficiency Judgment ........................................................................................ 14

    7 OUR SHORT SALE PROCESS DIAGRAM ................................................................................... 15

    8 FREQUENTLY ASKED QUESTIONS .......................................................................................... 16

    8.1 What does your company South Florida Short Sales (SFSS) do exactly? .......................... 16

    8.2 How much will this cost me? ............................................................................................ 16

    8.3 How long does the short sale process take? .................................................................... 16

    8.4 What are the sellers responsibilities in a Short Sale? ...................................................... 16

    8.5 Can I receive any proceeds from the sale? ....................................................................... 16

    8.6 Why pursue a Short Sale? ................................................................................................. 17

    8.7 Ive already received a foreclosure notice, is it too late for a short sale? ........................ 17

    8.8 Can the bank still come after me for the balance after the home is sold? ...................... 17

    8.9 Im ready to get started, whats the next step? ............................................................... 17

    9 ATTORNEY BORROWER AUTHORIZATION LETTER ............................................................... 18

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    South Florida Short Sales

    6538 Collins Ave #67 Miami Beach, FL 33141

    305-390-0574 Main - 786-398-4614 Fax

    1 Introduction

    Inside this report you will find valuable information on the Foreclosure process and timeline in

    the state of Florida. It is a brief summary intended to help Homeowners understand their pre-

    foreclosure options.

    This information will provide Homeowners with basic knowledge of a Short Sale, as well as

    introduce our company South Florida Short Sales (SFSS) and explain how SFSS works.

    Whats important is that you understand your options so that you can make the very best,

    most logical decision.

    Websites and other resources that may be helpful:

    To estimate the value of your property:

    www.Eppraisal.com

    HUD Tips for Avoid Foreclosure:

    http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

    Foreclosure Assistance in Miami-Dade

    http://www.miamidade.gov/csd/foreclosure_prevention.asp

    Foreclosure Assistance in Broward

    http://www.broward.org/Housing/Pages/ForeclosurePrevention.aspx

    http://www.miamidade.gov/csd/foreclosure_prevention.asphttp://www.broward.org/Housing/Pages/ForeclosurePrevention.aspxhttp://www.broward.org/Housing/Pages/ForeclosurePrevention.aspxhttp://www.miamidade.gov/csd/foreclosure_prevention.asp
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    South Florida Short Sales

    6538 Collins Ave #67 Miami Beach, FL 33141

    305-390-0574 Main - 786-398-4614 Fax

    2 Pre-foreclosure Homeowner OptionsBelow are the most common solutions for homeowners who are facing foreclosure. Each

    homeowner has a unique situation with various circumstances. This section provides you with a

    definition of the most common solutions.

    There are two categories of Options:

    1. Staying in the house2. Moving from the house

    OPTIONS FOR STAYING IN THE HOUSE

    2.1 Loan Modification (most common)A loan modification allows for changes to the original terms of a borrowers promissory note,

    which may include an adjustment to the interest rate %, an extension of the loan term, oradding missed payments to principal. Homeowners must qualify for a modification as they

    would qualify for a new loan. Currently, loan modifications have about a 50% success rate. (The

    problem with loan modifications is that lenders are generally not reducing loan principal to the

    current market value of the underlying real estate.)

    2.2 Repayment or Forbearance Plan

    The borrower is allowed to catch up on missed payments by making more than the monthly

    payment until the loan is brought current. The bank allows you to skip monthly payments

    temporarily, or make partial payments for a specified time. Missed payments may be added toprincipal or become part of a repayment plan or loan modification. ( only possible if finan