Lake Tahoe Short Sales
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My goal is to give you a clear understanding of all your options and to help you answer the lingering question, “what would give me the least liability in the future?”
Every case is different, and no one-size-fits-all answer exists. Give me a call. I’ll listen until I understand your situation and your goals. Then I’ll guide you to the best possible solutions that will leave you with the least future liability.
For many struggling homeowners, a short sale is the best and fastest strategy for getting rid of debts. As tough as it sounds, taking action to get out of a worsening situation not only relieves you of stress, it also relieves you of the negative consequences of a foreclosure. This includes the blot on your credit record for seven or more years. Unlike foreclosures, there is no standard for reporting short sales. Some lenders report it as “agreed settlement short of full payment.” Some do not report it at all.
(Click to read my latest short sale success story)
In the four years that I’ve handled short sales, I’ve seen that most homeowners want and need professional guidance. An anxious state of mind makes it hard to focus and take action to dig yourself out of debt. Talking it out helps the homeowner see his way through the fog. Some homeowners just want to cooperate with their lenders, and settle their debts in a way that ends up favorable for both sides.
Short Sale Benefit #7: Unlike foreclosures, there is no standard for reporting short sales. Some lenders may report as “agreed settlement short of full payment” and some may not report them at all.
Short Sale Statistics
About 31% of the less than 3,000 active listings in Northern NV are short sales.
In Lake Tahoe, the percentage is much lower. In April 2011, because of a resilient local economy, Incline Village had a total of 486 active homes, 10% or less short sales.
Nevertheless, the need for professional help in handling short sales continues to grow.
If you are a struggling homeowner: you are not alone. Nearly 7 million residential mortgages are classified as “non-current,” or behind in payments. Over 25 % of all homes in the US are mortgaged at cost higher than the value of the property.
Short sales soften the blow to your credit record. A short sale looks better than a foreclosure on your credit report. This is the main reason many homeowners choose a short sale.
12 benefits of doing a short sale:
- You make the decisions. Not the banks.
- It has been known that in underwriting bulletins from Fannie Mae and Freddie Mac , they will back a loan to a short sale participant in only three years, but people who let their house go to foreclosure must wait seven years.
- In a foreclosure, your lender takes possession of your house and eventually sells it to recover what they can from the money you owed on your mortgage. But in a short sale, you work with your lender to come to an agreement where you sell your house (at a loss) and pay off your mortgage at a reduced rate.
- The possibility of settling your debts in full and avoiding a deficiency judgment. With a short sale, it is very possible to put a bad situation in the past and eliminate any fear of being harassed by collection agencies for years to come.
- The government HAFA program can potentially pay you $3,000 at closing, you avoid a foreclosure on your credit report, and you walk away knowing you’ve done everything you can to cut your losses short.
- Unlike foreclosures, there is no standard for reporting short sales. Some lenders may report as “agreed settlement short of full payment” and some may not report them at all.
- You may be eligible for another loan with Freddie Mac or Fannie Mae in two years – or even immediately, if you were never late in your mortgage payments.
- In foreclosures, deficiency balance is not waived on junior liens. The HAFA program potentially eliminates all deficiencies.
- In most cases you will not have to pay tax on forgiven debt if the foreclosed home was your principal residence.
- Possible $3000 relocation credit to seller if processed through HAFA or Bank of America Cooperative Short Sale Program.
- Foreclosure typically begins after 60-90 days of delinquency. Lenders often cancel or suspend the foreclosure timeline during the short sale process.
- More control. You have the ability to market your property and get the highest and best offer resulting in a substantially reduced deficiency balance and a greater chance of a full settlement with your lender.
Helpful Links:
- Reno Short Sales (Northern NV’s biggest city by population)
How Can I Help You?
Phone: 775-338-7653
Email: jsalcedo@chaseinternational.com
Learn: My Previous Articles
