DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Almost Home Realty
Wood River, IL 62095
618-251-9000
Email Us

Quick Search


view all


Any

Any

No Min.

No Max.

Short Sale

Options To Leave Your Home and avoid Foreclosure

 

Homeowners who are struggling with their mortgage payments are facing tough choices—do you stay in a home you may no longer be able to afford or should you try to leave? While it may be difficult to think about leaving your home and making this decision, it may be the best option if other solutions to keep you in your home are no longer viable.

Don’t just walk away from your home.
There are better options. The most important thing is to avoid foreclosure—and options may be available to assist you if you are ready to leave your home. Some options may even offer cash incentives to help you move and transition into different housing. Now’s the time to take action before it’s too late.

Short Sale

If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale—even if you don’t think you can (or haven’t been able to) sell your home.

A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds. You may also be eligible for the government’s Home Affordable Foreclosure Alternatives Program (HAFA) which offers short sale and DIL options.

A short sale is an alternative to foreclosure and may be an option if:

  • You are ineligible to refinance or modify your mortgage
  • You are facing a long-term hardship
  • You are behind on your mortgage payments
  • You owe more on your home than it’s worth
  • You have not been able to sell your home at a price that covers what you still owe on your mortgage
  • You can no longer afford your home and are ready or need to leave

What are the benefits of a Short Sale?

  • Eliminate or reduce your mortgage debt
  • Avoid the negative impact of foreclosure
  • Start repairing your credit sooner than if you went through a foreclosure
  • May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (at least 7 years)

What is the process for a Short Sale?

If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with a real estate agent to market and sell your home. However, your mortgage company will also be working with you and your real estate agent every step of the way to:

In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.

A Short Sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. If you are unable to sell your home, you may be able to transfer the ownership of your property to the owner of your mortgage (also called a Deed-in-Lieu of Foreclosure).

  • set the sale price (based on current market value),
  • collect financial information and negotiate with other lien holders (i.e., your second mortgage company) if applicable,
  • review acceptable offers,
  • agree to the terms of the sale once a buyer is in place, and
  • work with the buyer’s real estate agent and mortgage lender to finalize the sale.

Steps for doing a short sale 

 

Step 1

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Step 2

Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, the reasons why this is a long-term problem and inform your mortgage company that you want to sell your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.

Step 3

Contact your mortgage company or a Fannie Mae Mortgage Help Center—Tell them you are interested in a Short Sale and you want to see if you qualify.

Step 4

Contact a licensed real estate agent—NOT JUST ANY AGENT

Almost Home Realty has been negotiating short sales for over 8 years.  We were the first Realtors in this area to recognise the future demand for caring professional Realtors with the training and skills required to to successfully jump through the hurdles and get people relief from their mortgage debt.  Call us today at 618-251-9000.  

 

 

 

Foreclosure -vs- Short Sale

This chart will show the difference between a Successful Short Sale and a Forelcosure;
and how each one will affect you:

 

 

Issue

Foreclosure

Successful Short Sale

Future Fannie Mae Loan – Primary Residence

(effective May 21, 2008)

A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only2 years.

Future Fannie Mae Loan – Non Primary

(effective May 21, 2008)

An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Future Loan with any Mortgage Company

On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks“Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates.

There is no similar declaration or question regarding a short sale.

Credit Score

Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.

In some cases only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale’s affect can be a brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record on a person’s credit history for 10 years or more.

A Short Sale is not reported on a persons credit history. There is no specific reporting item for ‘short sale’. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’.

Security Clearances

Foreclosure is the mostchallenging issue against a security clearanceoutside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.

A Short Sale on its own does not challenge most security clearances.

Current Employment

Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediatereassignment or termination.

A short sale is not reported on a credit report and is thereforenot a challenge to employment.

Future Employment

Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and inmost cases will challenge employment.

A short sale is not reported on a credit report and is thereforenot a challenge to employment.

Deficiency Judgment

In 100% of foreclosures(except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.

In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.

Deficiency Judgment (amount)

In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.



Margaret Barnett & Ellen Hill  | 618-251-9000 | Email Us
532 Edwardsville - Wood River, IL 62095
Copyright © 2016, All Rights Reserved

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu