The Fast and Effective Short Sale, Fact or Myth?

Most experts are predicting 10 million Nation wide Foreclosures by the year 2011. Banks are not listing all but instead are holding on to already foreclosed property on their books to prevent further drop or bottoming of the market.

US Treasury Department sources confirmed to HousingWire the Treasury expects to issue details a Streamline Short Sale Program later this month to help prevent Foreclosure for the millions of people trying to get a loan modification that simply will not qualify or are upside down on their primary and investment homes.

The program is being finalized and will be announced as soon as possible, according to testimony Wednesday by FHA commissioner David Stevens.

In times like this you need a University Certified Short Sales Specialist and not just someone to list your home and try to sell it until you lose it.

Click on shortsale@topgunbrokers.com to receive help from a true certified specialist

When speaking with other real estate practitioners I usually get the same complain or comments “I don’t bother with Short Sales because they take forever and usually don’t get approved” I find that most agents simply don’t have the necessary training, and are going by what they have heard from other frustrated agents and others.

Unfortunately the great majority of agents which call themselves trained or certified Short Sale experts have gotten their expertise from a 2 or 4 hour class that they attended or got on-line. Real Short Sales training cannot be accomplished in a few hours but must be thorough extensive and on going because the rules and practices keep changing as the process evolves and adjusts to the current conditions.

Click on shortsale@topgunbrokers.com to receive help from a true certified specialist

Most Short Sales are being mishandled by the very people claiming to be the experts and I am not just talking about real estate agents, but also title companies, and real estate attorneys. The fact is that these people are learning as they go and in doing so they are making their clients pay the ultimate price by having them end up losing their house in foreclosure with a big deficiency judgment following them for 20 years.

The government has tried on several occasions to make rules and regulations to help people modify and stay in their home in the past, but the results have fallen short and just simply failed to deliver results. In fact what has happened is the total opposite by giving homeowners false hopes and expectations.

Although I welcome any attempt to regulate and streamline the Short Sale process, I know that your best line of defense is to be represented by a highly trained and experienced Short Sale specialist from Top Gun Brokers.

Click on shortsale@topgunbrokers.com to receive help from a true certified specialist

A fast and effective Short Sale is not a myth and it is in your grasp when you work with an extensively trained real estate professional at Top Gun Brokers.

Short Sale and your credit score

One of the main concerns of homeowners that find themselves behind on their mortgage when considering their options is the way their credit score is affected by a Short Sale, a Foreclosure, a Deed in Lieu of Foreclosure, or a Bankruptcy.

A more important point to consider is not the actual score but how long will the score be affected and how long will take before the process of repairing the score can begin.

For additional information and assistance please visit http://topgunbrokers.com

The Short Sale-

Of all the options to consider the Short Sale is the less harmful and most effective choice for the borrower. This option allows the borrower to sell the property for less than what they actually owe the creditor/bank by obtaining approval from the creditor for the Short Sale through a series of negotiations.

Although the impact of the credit score is only a bit less than the other options (usually 50-75 points), the real benefit is that the debt can be considered settled and releases the borrower from any future liability if negotiated correctly by a trained and qualified Real Estate professional.

The debt shows up on the credit report as “Paid for less than the full amount” and reparations can begin immediately after the process is complete.

For additional information and assistance please visit http://topgunbrokers.com

The Foreclosure and Deed in Lieu of Foreclosure-

Avoiding either of these options should be the top priority for a borrower in trouble.

The Foreclosure process is be a very stressful and embarrassing experience which can lead to the borrower being evicted from the property, their personal property being put out on the sidewalk and a huge deficiency judgment following them for many years to come.

A Deed I Lieu of Foreclosure is essentially the same as a Foreclosure but just makes it easier and less costly for the creditor to obtain possession the property.

The debt in either case will show up as an unpaid debt “Foreclosure” on the credit report and the endless phone calls from debt collector will continue for many years to come. Reparations to the credit report are much more difficult and the process will be long and painful.

For additional information and assistance please visit http://topgunbrokers.com

Bankruptcy-

A Bankruptcy is a very personal and individual decision to be considered by the in trouble borrower.

The effect of the Bankruptcy on the credit score is essentially the same as a Foreclosure and the borrower will eventually lose the property.

The full effects of a Bankruptcy should be thoroughly discussed with your attorney.

What to do?-

When considering the options the borrower should always seek the help and guidance of qualified and ethical professionals (Realtors, Accountants, or Attorneys)

I have included an article below which I came across which gives an explanation and example of how a score can be impacted by the different options or scenarios.

For additional information and assistance please visit http://topgunbrokers.com

How do delinquencies impair credit scores?

CHICAGO – April 23, 2010 – Fair Isaac, which developed FICO scores, used a comparison between two people to explain how mortgage delinquencies affect credit scores.

Fair Isaac derived these numbers from a theoretical calculation based on hypothetical borrowers – one with an initial score of 680 and one with an initial score of 780. FICO scores range from 300 to 850.

The hypothetical person behind the 680 score had six credit accounts, while the person with the 780 score had 10. The consumer with the 780 score had no missed payments other than the mortgage; the 680 example had two late payments before they failed to pay the mortgage.

After a mortgage payment problem, the two scores would look like this:

• After a 30-day delinquency, the 680 score drops to somewhere between 620 and 640; the 780 score declines to 670 to 690.
•   After a 90-day delinquency, the 680 score falls somewhere between 595 and 610; the 780 score goes to 645 to 665.
• After a foreclosure, short sale or deed-in-lieu, the 680 goes somewhere between 575 and 595 and 780 drops to 620 to 640.
• After a bankruptcy, the 680 drops somewhere between 530 and 550; the 780 declines to 540 to 560.

Source: CNN, Les Christie (04/22/2010)

© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688