Free Short Sale Pro
27200 Tourney Road
Valencia, CA 91355
Office: 661-255-2006 firstname.lastname@example.org www.freeshortsalepro.com
FREE SHORT SALE PRO PROVIDES YOU A FREE CONSULTATION AT NO COST TO YOU PLEASE CALL BAS PANCH AT 661-255-2006
What is a Short Sale? A short sale is the process by which a homeowner can sell a house for less money than they actually owe on the mortgage. Typically, the homeowner does not pay for any part of the short sale. Free Short Sale Pro will negotiate with the bank to pay the following: sale commissions (for listing agent and selling agent), title and escrow fees, and property taxes. Normally, a bank prefers to do a short sale, because it is less of a financial burden than conducting a foreclosure on a homeowner. After a short sale, you may be able to re-purchase a home in three years, as long as you keep all other credit current.
How Do I Qualify for a Short Sale? The homeowner must demonstrate financial hardship in order to qualify for a short sale. A one-page hardship letter must be written by the homeowner explaining why they are no longer able to meet the mortgage payments. The hardship letter must not be accusatory or blame the lender in any way. The letter should state the involuntary circumstances that caused the hardship, including:
Pregnant or a New Born Baby
Divorce or Separation
Death of a Spouse or Family Member
Personal Illness or Undergoing Surgery and Rehabilitation
Decreased Income due to Loss of Employment
Additional Debt (such as attorney fees from a divorce or impending lawsuit)
Failure of Personal Business
Increase in Mortgage Payment or Rate Adjustment
Inability to Improve the Value of the Home with Necessary Repairs
How long does it take? This process can take anywhere from 6 weeks to 4 months so you will have plenty of time to move when the property sells.
What does it Cost? Absolutely nothing to the seller!
How Do I Start the Process? Contact Bas Panch immediately at 661-255-2006. We will start the process and negotiate with the bank for you, at no cost to you. A FREE attorney and CPA, along with Bas’ expert guidance is provided free of charge, and can help save you huge sums of money if you contact us early in the process. If your property is currently going into foreclosure to be sold by the lender, we can stop the process and keep you in your home until the property sells.
Short Sale Disclosures:
Tax and Legal Consultant – Sellers are urged to consult with their CPA, Attorney & Credit Specialist – or Free Short Sale Pro can provide one for you. To the extent the Seller fails to obtain the foregoing consultations, they are acting against Bas Panch’s advice.
Taxes – the Seller may be obligated to pay taxes on any debt forgiven by the lender (the difference between what you owe on the property, and what the property actually sold for). The IRS considers debt forgiveness as ordinary income. Consequently, the difference between the loan amount and the short sale amount, may be taxed at the Seller’s ordinary tax-bracket, depending on how the bank processes the short sale. This may cause a Form 1099 to be issued, thus resulting in additional tax liability to Seller(s). Because of how complex tax law is, the Seller is urged to consult with a Certified Public Accountant to review all tax and accounting issues relating to the sale of the Property.
Credit – A lender may handle a short sale in a number of different ways. It can report the loan as paid in full, which would have not adverse credit consequences. A lender may also report the loan as being “satisfied” or “settled.” Future lenders and credit reporting agencies may consider satisfied or settled loans as being similar to a deed in lieu of foreclosure. Or, when a Lender accepts less than the amount owed to them, it can be negatively reflected within the Seller/Borrower’s credit history, and diminish their ability to obtain future credit, and/or increase the costs of future credit.
Full Financial Disclosure – A Seller should know that a lender will require detailed and accurate financial statements from the Seller showing financial hardship, as a condition of approving a short sale process. The Seller must fully cooperate with the lender’s requests for financial transparency, in order to facilitate a short sale process.
MLS – the listing agreement as well as the MLS listing announcement will show the property is subject to a short sale. Both the listing agreement and the MLS will contain a statement that says any sale of the property is “subject to the lender’s approval.” This applies to Realtor’s commissions as well.
No Guarantee of Short Sale and/or Sale of Property – While Bas Panch will undertake his best efforts marketing the property offered for sale, and seek lender approval of a short sale, the Seller is advised that Bas Panch does not guarantee the lender(s) will approve the short sale, or that the property offered for sale will close escrow.
Loan Modification – a loan modification involves altering the terms of the borrower’s original loan. The issue here is that your loan payments may increase, and/or stay the same, and re-defaults can occur soon thereafter. (According to a recent article in USA today, loan payments stayed the same 27.5%; and were increased 27% of the time. And a recent government survey stated that 53% of borrowers who modified loans in the first quarter of 2008, started missing payments again within six months).
Foreclosure – Foreclosure is the legal proceeding in which a bank or other lender gets the deed on a piece of property, due to the owner’s default on their promissory note. The issues here are that foreclosure has a substantial negative impact on your credit score, and it can stay on your credit report for seven years. Banks and other lien-holders can still collect on past balances.
Bankruptcy – Bankruptcy is a legally declared inability or impairment of ability, for an individual to pay their creditors. The issue here is that bankruptcy has a very heavy negative impact on your credit score, it can stay on your credit report for ten years, and it is very difficult to qualify for additional credit (i.e. getting a credit card, buying a car, renting/buying property, etc.)