Baltimore Short Sale

HAFA Real Estate Short Sale Rules

Selling your home is now made easy as the government successfully issued real estate short sale rules under HAFA or Home Affordable Foreclosure Alternatives Program. The program aims to encourage homeowners in financial hardship to consider a short sale rather than going down the road of foreclosure. Mortgages that are owned by lending institutions, such as those of Freddie Mac and Fannie Mae are encouraged to adhere to HAFA rules as they benefit all parties that are involved in a short sale process. Some banking institutions have decided to follow HAFA rules as they have realized that accepting short sales is more profitable than foreclosing on properties. HAFA was aimed to streamline the short sale process, making it a more desirable option among homeowners and even lenders.

What is a short sale?

Short sale is a process wherein a homeowner sells his real estate property or home for less than the debt owed against the home. If the current outstanding amount due of a borrower in hardship is more than the prevailing market value of a property, then a short sale is perceived as a more desirable option than other foreclosure alternatives methods.

A short sale is also known as a discounted payoff. Lenders may forgive the lender of the debt and accept the purchase agreement amount and the proceeds from the sale at closing. There are also instances wherein lenders oblige sellers to pay the deficiency, that which is the difference between the amount owed and the actual sale price. However, according to HAFA rules, sellers can be forgiven of their debt while not holding any obligation of paying any deficiency for a property. Instead, the HAFA program aims to incentivize the seller, investor, and even the servicer who helped in facilitating the short sale process.

Who should take advantage of a short sale?

Homeowners in financial hardship who are behind on their mortgage payments or in jeopardy of being in the near future should consider a short sale as a viable option of letting go of a real estate property. If you are a homeowner and you feel that your financial problems will run for a long period of time, it’s best to apply for a short sale instead. Here are a couple of benefits if you decide to short sell rather than choose to foreclose on a property:

• With a short sale, your credit rating will not have to suffer for a long time.

Foreclosures are known to have a negative impact on one’s credit history for as long as ten years. Although a short sale may affect the credit rating of a homeowner, it does not stay too long on record. If you decide to short sell a property, you can already apply for a mortgage or any type of loan with high chances of approval after only two years.

• Homes on short sale are usually in better condition than foreclosed homes

Buyers should take comfort in the fact that properties in a short sale are typically in good condition as sellers are still currently living in the property in most cases. Homes in foreclosure are sometimes those that have been abandoned for a while. If your main aim as a buyer is get much value, it is safer to invest your money on short sale properties instead most of the time. In addition, the HAFA program has even encouraged homeowners to maintain their homes as there is an incentive when they sell the property at a desirable price point.

• More lenders prefer short sales than foreclosures

This fact alone tells homeowners that a short sale is preferred by lenders as they make more profit through this method than foreclosure. More often than not, the processing of foreclosure may be costly, thus encouraging them to approve short sales instead.

If real estate property values are still decreasing, short sale may be a long term solution among those who default on their mortgages. Not only will they find relief from selling their property, they are also given a chance to get right back on track with the incentives that are provided to them after a successful short sale process.

Hire a short sale specialist

All homeowners should seek the expertise of a short sale specialist if they decide to put their real estate property on short sale. The proceedings will be a bit complicated for majority of homeowners to push through by themselves. There are numerous documentations that need to be filled up, and without the supervision of a specialist, a short sale package may not even push through or be outright rejected.

In addition, a short sale specialist will be able to negotiate with your lender by coming up with a desirable selling price with the lender. A good short sale specialist will assist you in convincing a lender to forgive the deficiency on your mortgage debt.

HAFA Rules

Here are some of the basic rules stated under the HAFA program.

• HAFA will enable borrowers to be pre-approved for a short sale. By simply providing lenders with complete documentation, they will determine your eligibility for a short sale in as fast as 10 days.
• The HAFA releases sellers from any future financial liability on the first mortgage lien.
• Faster short sale approval process is implemented by HAFA thus making it a more streamlined and hassle-free process for short sale applications.
• Once short sale is approved, the following incentives are awarded to involved parties:

-          $2,000 for Investors

-          $1,500 for Servicers who facilitate and administer a short sale on behalf of sellers

-          $3,000 relocation assistance amount to be given to borrowers

The streamlined process implemented by the government and agreed upon by banking institutions has helped a lot of homeowners to sell their property without much difficulty. They are even offered the financial assistance that they need to start anew despite losing their homes. Contact us today to speak to a Maryland short sale Realtor to offer no cost expert short sale assistance.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you need to stop foreclosure on your Baltimore Maryland home, with the help of a short sale expert, then you are in the right place! Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program. Our services are 100% FREE to you!

Copyright First Coast Realty Associates 2012

Can I Do a Short Sale without Missing Payments: Step By Step Approach

One homeowner asked, “Can I do a short sale without missing payments?”  A professional real estate agent gave his professional opinion that it would be impossible, since short sales are only considered for homeowners who are currently in default and are not capable of meeting their payments. This is the problem when homeowners consult real estate companies that are not short sale specialists. The root of the problem when dealing with the question “Can I do a short sale without missing payments?” is that people tend to believe stories in the news, from co-workers, or friends. This means they fail to distinguish between opinion and facts. When dealing with family finances, guess work should be eliminated by getting the services of the Short Sale Specialist Network, which can link homeowners with a more than qualified short sale Realtor. The reality is that short sales get approved even with homeowners never missing payments in order to avoid the possibility of a foreclosure. 

1. Go with the truth.

Homeowners that contemplate the possibility of doing a short sale without missing payments often believe or get the wrong advice that they should falsify their current condition. This is actually the worst thing that they can do if they want to get bank approval. A homeowner has the tendency to wonder why a bank would approve short sale initiatives if the mortgage payments are current.  There are actually three common reasons:

• Homeowners loses job or source of income
• Spouses have undergone divorce
• Homeowner is forced to move due to job, medical, or military reasons

Competent real estate companies know that banks will approve short sales if they see it as a better option. Short sale specialists know exactly just how to present this initiative as a better alternative to foreclosure.

2. Show imminent default.

As a homeowner, the question of “Can I do a short sale without missing payments?” takes into consideration your present condition where meeting mortgage payments can be done with consistency and regularity. However, if in the foreseeable future you think that your finances will be a train wreck, then you have to show this to the bank. The mortgage industry defines imminent default as the potential for financial stress in the following months because of potential:

• Loss of income
• Change in jobs
• Divorce
• Medical bills
• Company relocation
• Dwindling of funds
• Financial challenges

3. Provide adequate documentation.

It is important for homeowners to realize that since they have been able to keep up with mortgage payments, there will be no public record available to the contrary. This means that the burden of proof for imminent default lies on the homeowners. This is a crucial step to help them establish expected financial challenges. Short sale specialists know that financial worksheet, hardship letter, tax returns, asset disclosures, and account statements will be required by the bank for verification. A competent short sale specialist Realtor will be able to prepare these types of documents to ensure lenders allow a short sale without missing payments. They also know the importance of preparing the hardship letter and other documents that make up a short sale package, for imminent default before the financial worksheets for better presentation of the financial challenges of the homeowner.

4. Paying attention to the different steps.

The evaluation of short sale initiatives are commonly done on a per case basis and goes through a rigorous approval process that involves multiple steps and several companies. Short sale specialists understand that the lender normally has another investor working behind the scenes, and some loans having multiple investors. If the down payment made is less than 20%, then it is possible that a Mortgage Insurance is applied.

In this scenario, the Mortgage Insurance investor becomes responsible for the initial 20% loss on the loan, and provides approval for the terms of the short sale. Therefore, the initiative would require approvals from the lender, investors, and Mortgage Insurer.  Having a second mortgage can substantially double the number of personalities involved.  A Baltimore short sale Realtor will be able to pay attention to all these details and steps as well as negotiate release of other liens on your property.

5. Preparing for the outcome.

Every homeowner who wants to initiate a short sale without missing payments must understand that the entire process can be extremely unpredictable. Short sale specialists can relate to the fact that aside from the approval process, homeowners need to consider whether they are closing without future obligations, will a deficiency judgment be filed after, or will cash contributions be required? Not even the best local real estate agent can predict the outcome of the entire short sale process.  However, they can prepare homeowners for the eventualities by paying close attention to the details involving every servicer, investor, and Mortgage Insurer, as well as other government agencies that implement various policies.  With ever changing requirements and regulations, the need for short sale specialists is highlighted.

6. Taking control of the decision.

Despite these many tedious processes involved in the short sale process, homeowners must realize that the decision on accepting, rejecting, or countering any offers on the short sale initiative remains with them.  Even the decision on whether to cancel the short sale or not is on the shoulders of the homeowner.  Without a competent local real estate agent, the decision process can be challenging and difficult. The importance of the decision that the homeowner makes is emphasized by the fact that it directly affects the financial future of their family. 

It also highlights the services provided by Short Sale Specialist Network in connecting financially challenged homeowners with competent real estate agents in undertaking this important decision process to gaining positive grounds for their future. This culmination of the steps on how to do a short sale without missing payments is also the most important in terms of getting the result you want. Essentially, completing a short sale initiative while still remaining current with your mortgage payments will significantly reduce the negative impact on the credit report of the homeowner, at times limiting the drop to 40 points on the FICO score.  Following these steps will help ensure that the answer to the question “Can I do a short sale without missing payments?”, would be more of a yes rather than a no.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you want to stop foreclosure on your Baltimore MD home, then you are in the right place! Our specialists provide FREE short sale expert services to Baltimore homeowners in hardship.  Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Foreclosure Credit Impact

There comes a time in an individual’s life when they have decided it is time to establish a more secured and permanent lifestyle. Most of these particular individuals decide to start the establishing process in a home they can call their own. When the homeowner gets wrapped up in all of the excitement of decorating their home to their own liking and planning holiday dinners, the thought of “what if” isn’t typically crossing their minds.
In this case, the “what if” would be “What if something happens and I can no longer keep my home, am I prepared for that”? A commonly correct answer to this is, no. A realistic approach once signing your name to that home loan is a backup plan as well. Life is spontaneous and we never know what the next day will bring and with the economic struggle in today’s society, being prepared is a must. I will let you know of a word that could jeopardize your future if a sudden hardship should arise and the consequences of it.

The word is foreclosure. We’ve all heard of it and we think “that can never happen to me”, well that’s what the homeowner three doors down said too. He wasn’t aware of the impact his credit would take because of a foreclosure, he wasn’t aware of the available options to avoid a foreclosure. A foreclosure will typically happen to the homeowner who has not tried out his other options, or has let the foreclosure notices pile up until it was too late. If you are asking yourself “What will a foreclosure do to my credit”? Well here’s a little information for you.

Your credit score will take a dramatic beating; In most cases lowering it by 300 points while staying on your record for up to 10 years. In these 10 years, you may not be able to qualify for anymore loans and will see rejection in most places you go. A foreclosure is also permanent in public records. An employer may check your credit history and see the foreclosure, which in turn, may cost you your employment with them. Again, a foreclosure is one of the most negative items you can have on your credit and could affect future, if not present employment. Aside from what a foreclosure may do to your credit, think about your life. Think about your home being auctioned off in front of all of your neighbors, your friends and your family. It is not only embarrassing to have the neighborhood know that you cannot afford your home, but it is also gut wrenching to know that you, at that point, have no control over who the next homeowners will be.

You should never think you are alone if a tragedy should arise and cause you to no longer be able to hold your financial obligation as a homeowner. Options are available and certain specialists are ready and waiting should anything occur. These specialists are called ‘Short Sale Specialist Realtor’s’. These particular agents specialize in short sales; an alternative to foreclosure. Short Sale Realtors understand hardships happen and are fully educated on the impact of a foreclosure on a homeowner’s credit, as well as the benefits of opting for a short sale and how to qualify. Get in contact with a Baltimore Short Sale Realtor if you are in need of assistance, or just looking to acquire more information about foreclosure and how it impacts your credit. It is always advisable to have a backup plan as a homeowner, why not start now?

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

It is time to stop Maryland foreclosure and in order to do this, contact us! Our specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Contact us right now and let’s get your short sale started! Need a Baltimore Distressed Property Expert in short sales to offer free broker short sale services? Our Baltimore MD area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Baltimore- Distressed Property Experts

It’s no secret that in today’s economy; hardships are becoming more and more common. Making sure we stay debt free and holding on to the things we have worked so hard for seem like they are too high of expectations anymore. But they aren’t. If you are a homeowner facing foreclosure, then a Distressed Property Expert is the solution for you because of their knowledge, experience, professionalism and eagerness to help you.

Distressed Property Experts are professionals in Real Estate and Experts in Short Sale. What is Short Sale? Short Sale is a way to escape the hassle and frustration of a foreclosure. A Short Sale is when an agreement is made to accept less than is owed on a property. Sound confusing? This is where your Distressed Property Expert comes in. They will lead you into a more informative understanding on the process of a distressed home and how a foreclosure could be right around the corner. They will also explain to you the difference in a short sale and a foreclosure. They will explain to you that a foreclosure can affect your credit tremendously and should never be an option without speaking with a Distressed Property Expert. They will explain that a Short Sale doesn’t have to affect your credit and the benefits it could bring. Short Sale is a commonly chosen way to go when not being able to keep up with your Mortgage payments.

A Distressed Property Expert is aware of any questions you might have and are fully prepared to answer them in as much detail it takes to give you a better understanding of a Short Sale and what a Distressed Property Expert is and will do for you. Your worries and any amount of stress you take on during this process will rest in their hands. They will listen and understand. You never have to worry if finding a Distressed Property Expert was the right choice because immediately your head becomes a little clearer and a weight has felt as though it has been lifted.  Time is a valuable and precious thing, when in distress of your home; too much of it is never enough.

When you are making the decision, a decision that could impact your future, make sure you are making the right one. Make sure your dreams and goals are still achievable because you let A Distressed Property Expert help get you there. Make sure you expand your knowledge in a Short Sale and get a complete understanding on the definition of a foreclosure. Your family is precious and a Distressed Property Expert agrees with that and wants the same outcome you are looking for.

The time is now if you are in distress in your home to contact a  Distressed Property Expert and get out of your situation, let the experts handle it, and let Distressed Property Expert’s ease your mind. Do not let another second pass by without taking the first step in getting a Distressed Property Expert to help get you away from the danger of a foreclosure.

If you are desperately trying to sell your home, you may be aware of the fact that your home can not sell for an amount high enough to pay back your loan. This is the case with many homeowners today. What can be done in cases such as this to help stop foreclosure?

A short sale can take place when a homeowner owes more on there property than it is worth. In order to qualify, you must prove to your lender that you can no longer afford your mortgage because of a financial hardship such as job loss, divorce, relocation, job transfer, decreased income, medical expenses and many others.

Since short sales are completely free to borrowers, you really have nothing to lose! In order to properly stop mortgage foreclosure on your property, it is very important that you hire a Maryland short sale specialist. This Realtor will work to your advantage answering any questions you may have along the way. In addition to this, your Baltimore stop foreclosure Realtor will work with your bank to get you released from the debt that remains on your property. While this isn’t always achieved, in most cases where borrowers have a true hardship, lenders generally release the borrower from the debt.

The biggest decrease in your credit score will likely come from missed payments, averaging 30 points each. If you are already late on mortgage payments or you see that you will be in the near future, the best thing to do is begin the short sale process right away.

Baltimore Short Sale Specialist can help you get out of financial ruin. Are you seeing a decrease in the value of your property? And do not know what to do? Short selling your home could put you back in the financial state that you want to be in. Have you lost a job? Or just don’t have the means to pay your mortgage any more? Take a moment to ask yourself if getting rid of your debt once and for all sounds good to you.

Owing more on your home than the property’s value puts you in concession to file for a hardship letter. Once filed the bank will give you the opportunity to short sale your home. This will relieve you of your mortgage free and clear without having to payback the principle and interest owed  to the bank. Banks often times will be willing to pay the closing cost at the end of the transaction no questions asked.

Your credit score is a big deal! Working so hard most of your adult life to climb the ladder to financial success. Can a Baltimore Short Sale impact that? Yes, but not as much as a foreclosure. Short selling your home will bring your credit score down 30 to 70 points and at least 30 points per mortgage payment that you have missed.

Taking the time to find the right Realtor to work for you is one of the biggest steps in the short sale process. Many Realtors claim to have experience in short sales, but many will tell you false  information to get your business. If you choose a Realtor with less than great experience the process could drag on for months or even longer. Make sure that you have talked to a Baltimore Short Sale Realtor before making your decision. Taking the time to talk to someone with experience like a Baltimore Short Realtor could save you time and money.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Birmingham AL short sale Realtor? Look no further! Our stop Alabama foreclosure specialists provide FREE short sale expert services to Birmingham homeowners in hardship. Call today to see if you qualify for a short sale! Need a Birmingham Distressed Property Expert in short sales to offer free Chase short sale services? Our Birmingham AL areaDistressed Property Expert real estate agents are here to help, and are Certified or trained in the Alabama Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

The president of the Mortgage Bankers Association, John Courson, has recently stated in an interview with The Wall Street Journal that homeowners who deliberately become default on their mortgages should take into account what message they are conveying to their family, kids and friends. While referring to the all time high number of defaulter homeowners, he maintained that it was their responsibility to make good decisions. However, he did not criticize the underwater homeowners who are left with no option other than foreclosure. In fact, he criticized those homeowners who are voluntarily and deliberately choosing to go into default on their mortgage due to hidden motives.

In a similar manner, Henry M. Paulson Jr, the former Treasury Secretary has said that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator and one who is not honoring his obligation.” Why voluntary default is being criticized and considered to be an abhorred decision is due to the glorious past history when people put their utmost struggle and did anything to pay their mortgage. They even abstained from major purchases such as a new car or worked from dawn till dusk to make regular payments.

Two major reasons are usually quoted to prove that strategic default is not only antisocial but also amoral. One, default results in foreclosures that drive down the prices of neighboring houses to a great extent. As a result, a person’s irrational decision causes so many others to suffer economic loss. Second, the strategic defaulter himself degrades his character because he previously signed a promissory note. Despite this criticism and objections raised against deliberate default, we cannot always simply regard strategic default as an abhorrent act. Sometimes, borrowers can find no solution except for going into default. At that time, they are justified to do so and nobody can raise social or moral questions against them.

What are the justified grounds for homeowners to go into default? A homeowner should ask himself the following questions and then make a decision about default.

Do you really owe higher than the actual worth of your property?
If you owe $300,000 mortgage and your property is worth only $70,000, it will take decades to come back and you would continuously suffer from financial worries.

Have you applied for a loan modification?
Given that you are really facing hardship, you have more leverage with your lender in connection with a loan modification. Since lenders of today are showing more willingness to write off the principle loan for borrowers as part of a loan modification, it is apposite to use this card well before deciding about becoming a defaulter.

Have you consulted a bankruptcy attorney?
Consulting a bankruptcy attorney will give a signal to your lender that you are seriously looking to avoid a deficiency judgment after abandoning your home. This will be a compelling ground to persuade lenders to modify the mortgage loan.

When seeing no positive results coming out of your efforts to save your home, then there would be no reason to become a destitute trying to retain the home at the cost of great sufferings. You can walk away from your mortgage after giving your lender a chance to evade such an outcome. However, opting for deliberate default as a last option will not be an anti-social or amoral decision.

A short sale may be for you!
If you are one of the above mentioned borrowers who can simply no longer afford to make your mortgage payments due to a financial hardship such as job loss, divorce, or relocation, and a loan modification has not proven to work out in your best interest, a short sale may be your answer. A short sale allows you to get out from under your mortgage without ruining your credit, not to mention the fact that you will be completely forgiven of any deficiency (the difference between the selling price and the loan balance). A short sale costs borrowers nothing since lenders pay the seller’s closing costs, including Realtor fees. Consult short sale advice from an experienced short sale Realtor to find out if you qualify!

www.Short-Sale-Specialists.com

877-737-4903

For more information on the short sale process or to receive a free evaluation of where your home stands in today’s market, fill out the form below.

Are you looking for a Baltimore MD short sale Realtor? Look no further! Our stop Maryland foreclosure specialists provide FREE short sale expert services to Baltimore homeowners in hardship. Call today to see if you qualify for a short sale! Need a Baltimore MD Distressed Property Expert Certified in short sales to offer free Chase short sale services? Our Baltimore area Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Maryland Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Our organization does NOT directly offer short sale or foreclosure rescue services in the state of Maryland. CLICK HERE for more information on our
services.

Copyright First Coast Realty Associates 2011