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Las Vegas short sale
Additional short sale information
Pre-foreclosure sale also known as "short sale": This option allows you to sell your property, pay off your mortgage to avoid foreclosure and minimize the damage to your credit rating for an amount less than your total payoff, this is known as a short sale. Depending on how the bank reports this on your credit you may be able to have minimum damage on your credit to the point that you may be able to purchase a home again relatively soon considering you have not fallen behind on your payments. If you have fallen behind on your payments the bank will report late payments on your credit. We service all aspects of the short sale process and we do not only do Las Vegas short sales. An experienced Las Vegas short sale agent can help answer questions. Please watch the video for short sale for complete details. Why have I called several different people and received several different answers? If you are trying to get a definite answer on a short sale over the phone the only guarantee I can give you is that you will not get one. The varied responses are because the people you are asking do not work for the bank. They are giving you responses based on previous experiences with that bank, however they don't know what will happen with your transaction until it is accepted or denied by the bank. A bank can deny a short sale. Every transaction even with the same bank will yield a different result and that is as a result of the one variable that we have not worked with and that is you and your financial situation. A bank has a set of guidelines that they use for each short sale from those guidelines they can extrapolate 20 different answers, and all be correct and within guidelines. Please watch the video as I clearly stated in there that if you're looking for a guarantee and they give you one it is a sure way of knowing that the person you are talking to is either lying to you or inexperienced. Although we are experienced short sale agents in Las VEgas we work with agents all over the country. How long does it take for short sale to complete? It is supposed to be a "short" sale. Right? A short sale is not misnomer as it does not refer to the amount of time that the transaction takes to close. An example would be going to a store with a dollar bill and requesting change, you give the clerk the dollar bill and request for quarters. Comparing it to the mortgage if she gives you back or quarters you've been paid back in full. However, if she gives you three quarters back you've just been shortchanged. This is what happens with a short sale we negotiate with the bank so that they will accept less than what they owed and allow you to sell the home. The average time a short sale takes a short sale approval to be obtained is 60 days from the time an offer is presented, I have seen banks approved my short sales in as little as two weeks and as long as six months. What will I need to qualify? You will have to have the following items available to present to the bank: Your financial statements from your mortgage lender. Financial worksheet, (we provide it) Hardship Letter. Two months worth of bank statements. Two years worth of tax returns. 2 to 3 months worth of pay stubs. A lot of patience! Banks may continually ask for updated paperwork and you should have a copy of your current pay stubs and bank statements in a folder so they are readily available. I have had banks read documentation that they have received, only later to tell me that they have lost it and they need a new one. They have lost entire files and it had to be resent.This is one of the reasons why sometimes short sales takes so long. Do I have to be behind on my payments? No you do not, in fact many lenders will allow you to do a short sale without the need of being behind. If you are behind they will still do the short sale. Will I get a 1099 after a short sale? An IRS form 1099 is used after a short sale, it is designed to balance out the loss that the bank received because of the short sale. However if the home was your primary residence you may be able to qualify for a wright off of the full amount. Please consult with a financial advisor and/or the IRS. You may also receive one if you do a foreclosure. Will my credit be damaged? This is an example of an approval letter and what it reads if approved for short sale, it is a direct quote from documents that are sent to the seller of the home when they sell. It does not apply to all banks, remember your individual circumstance may be different and you may not bank with this bank. [...] " If we approve a short sale payoff of your loan in your remit to us that agreed upon short sale payoff amount we will: * file a 1099-C with the IRS and send you a copy. This may be a taxable event. You should consult with the IRS or a tax professional concerning any tax impact this may have two you, if any. *consider the debt to be satisfied in full. *release your mortgage on the public record. *report the transaction to the credit bureaus as "paid in full for less than the full balance." This may be considered a derogatory remark by future potential or actual creditors. Credit is not subject for negotiation. The bank will not report the loan "paid in full"unless they receive a payoff of the full amount due under the loan. They will continue, without change, their reporting activity to the credit reporting agencies with respecter your loan, until completion of short payoff transaction and they have received and posted good funds representing the agreed upon short payoff amount." [...] These results are not typical. My bank is the only one that needs to approve the short sale. Right? Your loan may require the approval of only the bank if they used their own funds to fund your loan. However most loans have insurance even if they did not have insurance when they began. If your loan is insured then once the bank approves your short sale then it goes to the insurer for approval. If your loan involves private funds such as those from an investment pool which may have over 200 people in it then it must go to vote for approval and your bank may have no say in it. In some instances you are not dealing with the bank but a servicer they will gather the paperwork just like the bank would but they submitted to the investor it could be a bank or it could be a person. Finding the correct owner of your loan sometimes may delay the approval. Housing counselors: By going to the HUD website you can find housing counselors in your area that may be able to assist you for free. These are housing counselors which have been certified by the department of HUD and are able to provide counseling service for free. |
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