New Orleans Short Sale

New Orleans Short Sales Help Stop Foreclosure

Choosing a Short Sale Realtor

As with any specialized field, you want to make sure that you have the most qualified and experienced professional by your side when you begin the short sale process. If you have found yourself in a position where you owe more on your mortgage then the home is worth, then you may be a candidate for a short sale. In addition, if you are facing foreclosure due to some financial hardship, it may be in your best interest to retain an experienced short sale specialist. A short sale is an agreement between a homeowner and their lending institution that the bank will accept less than the total amount of the outstanding balance to close the loan. There are many pitfalls in regards to short sales, which makes it the homeowner’s number one priority to make sure the agent they choose will be able to see the transaction through to the end. If the agent fails in anyway, the homeowner could be faced with delays, or even worse, rejection. Here are some basic guidelines to follow when you are choosing the right New Orleans short sale specialist Realtor and wanting to avoid a foreclosure.
 

●Never go with a novice Realtor. Using a Realtor who only has classroom experience instead of real life experience is like entrusting your Ferrari to a teenager with a learning permit. Sure they may have passed the test with a one hundred percent grade, but do they have any actual experience?
 

●Experience in realty does not equate to experience in short sales. Even if the agent has been dealing in real estate for years, there are many differences between traditional transactions and short sales. You should look for a Short Sale Specialist in Louisiana who has a minimum of three years dealing with short sales. The more transactions they have dealt with during that time should also be a factor. One or more a month is far preferable to one or two a year.

●Look for possible certification. Although it was stated before that education does not equal experience, it should be noted that the National Association of Realtors is launching a certification program for short sale agents. This certification does not guarantee that the Realtor is experienced in real world short sale experience, but at least it will tell you that they have a general knowledge base of the fundamentals. This certification should be considered as a benefit only after determining the length and success rate of the agents short sale experience. 

●Make sure they have closed on short sales. Again, it is one thing to have listed the short sales during their time in the business, but make sure that the agent you have chosen is routinely and consistently closing on those listings. The more homes the Realtor has closed, the more likely they are to know the procedures for the various lenders on the market. While Wells Fargo may pass a greater percentage of short sales, others may not. Each institution is different and you want an agent who is familiar with the greatest percentage of these. 

●Agents with a good eye for detail are superior. If you have chosen well, then your Realtor should be able to point out where any problems may lie during the process. While it is unethical and illegal for a real estate agent of any caliber to make declarations regarding law, it should be noted that an experienced New Orleans Short Sale Realtor will be able to know and inform you of “possible” obstacles.

●Find a Realtor with a team. As stated before, an experienced short sale real estate agent will have been involved in the market for a minimum of three years. During this time it is highly likely that they have built a network of professionals who will be needed during the short sale process. This team should, ideally, include a lawyer to handle the negotiation process. Lawyers are the best advantage to a favorable outcome and should be consulted in short sale situations.

The term short sale is often misleading to consumers. Many people think that because it is called a “short” sale then the time frame and effort that must be put into the process is just that, short. Any experienced real estate professional will be able to tell you that a short sale is lengthy, time consuming, and work intensive. On average a short sale can be four or even five times the amount of work of a more traditional sale. An advisor proficient in short sales will be aware of this instance and will be able to help the homeowner through this time. A short sale, although less stressful than a foreclosure situation, is a difficult and trying time for a homeowner. By initially choosing a qualified and experienced short sale professional to work on your behalf, you will be saving yourself many trials and tribulations down the road. These skilled Realtors know the consequences if they fail you in any way during this process and you want to find a Realtor who cares about those consequences as much as you do.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Searching for a New Orleans Short Sale Specialist?  Our stop Louisiana foreclosure specialists provide FREE short sale expert services to New Orleans homeowners in hardship. Contact us now and lets get you qualified for your short sale! Looking for a New Orleans Distressed Property Expert in short sales to offer free Broker short sale services? Our New Orleans area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Louisiana Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

The Difference between Foreclosures and Short Sales

When it comes to the point where you can no longer pay your mortgages, you may be faced with two options—foreclosure or short sale. To make the final decision; the question would be “which is the best solution?” Read on and learn the difference between foreclosures and short sales, and find out what really is a better deal. Let’s start.

1) What is a foreclosure? What is a short sale?

The bank may give you the option to foreclose or to apply for a short sale—but the problem is, you don’t know how both of these options work. Well do not worry because you can understand those two options by reading this article.

• What is a foreclosure? This is a legal process where the mortgage lender asks the home owner or the mortgage borrower to terminate their contract due to the incapability of the borrower to repay the loan. When the owner or the borrower fails to adhere to the contract, a decision will be made by the court or by the operation law to simply put the property on foreclosure or to award the property to the lending institution.
• What is a short sale?  This is the process where the homeowner or the mortgage borrower is given the chance to sell the property (a house, an apartment, a vacant land, or any real estate property) only at a rate that is lower than the mortgagee’s balance to the lender, but not lower than the market value.

2) On transactions and the adverse effect on your credit score

When it comes to doing all the necessary transactions to apply for a either a foreclosure or a short sale, there are also ups and downs. In terms of the application process down to the approval then to its completion, these two options will require you to have a little bit of patience and determination to actually complete all the transactions needed. Check out the detailed differences on processing the legality for both foreclosures and short sales.

• Waiting time. You may have heard about the long process of buying a short sale, but have you heard about foreclosure having a much longer process? The waiting time of the bank’s approval for your proposal may take 3 months to 2 years with short sale, but with foreclosure, you have to wait until 5 years before you can really see the results of your application.
• Credit score. Although both have adverse effects on your credit ratings, short sale garners only the least effects compared to foreclosure which you will suffer and reap for 5 years and more. Short sales also are not viewed in a negative way whereas the effects caused by foreclosures are way too damaging on your credit rating. Plus, this will remain on your record for 7 to 10 years. In view of this, you will have a difficult time obtaining a new loan again for the upcoming years during and after foreclosure.
• Credit history. There are a lot of adverse effects foreclosures have that short sales don’t have—one example is bad credit history. When you have done loan applications for a short sale, it will not appear on your credit score, but if you have a foreclosure before it will surely be mentioned on your credit rating. As for short sales, your application will only be reported on your credit rating as either paid or negotiated whereas foreclosures will be recorded as ‘foreclosures’ itself.

3) On buying another home after a foreclosure or a short sale

When you want to purchase again another property or home, you may wait for 6 months to 2 years before buying a new home, whereas on foreclosure,
you have to wait for 3 years to 7 years before you could purchase another home of residence.

4) On employment and on job application

As for short sale, your loan application will not be recorded on your credit score as short sale itself, but with foreclosure, you may end up losing your business or you may not get a new job because of having a clear record of foreclosure. Foreclosure may damage your credit score as well as your economic status, your family, and even yourself psychologically, physically, and mentally if you don’t know how to handle the problem and its continuing adverse effects until 10 years.

5) On benefits and on drawbacks

Although a short sale is a much better option than a foreclosure, it also has its drawbacks—and although a foreclosure can be the worst option, it still has its benefits. Below are the benefits and drawbacks of short sales and foreclosures.

• Foreclosures

Benefits: You don’t have to pay your mortgages anymore.

You can still utilize your house until the foreclosure is final.

There are no strangers who will occupy the house while you are still using it.

Drawbacks: Foreclosure may shatter your dreams.

You will you rights as a homeowner and will return to the market as a renter.

The bank may post a notice of public in your gate or front door.

You will reap a bad credit history.

Waiting time for approval may seem like a lifetime.

• Short Sales

Benefits: You won’t suffer the adverse consequences of foreclosure.

You will no longer pay any mortgages.

You are able to meet new owners.

You can buy another house for the next 6 months to 2 years.

Your application for short sales will not reflect on your credit score.

Drawbacks: The waiting time can be downright frustrating.

You need to write a hardship letter and submit a proof that you are eligible to apply for a short sale.

Buyers may have a lot of competition to purchase the property and you have no assurance that you will be the right purchaser of the house until the bank finally approve your offer.

Buyers have to increase your offer to beat the competition.

You will be able to have a Short Sale Specialist by your side through your short sale making sure the transition is as comfortable as possible for you.

Having understood the difference between foreclosures and short sales, do you now have an idea of which is the better option? Do you now have a final decision on what you will do to your property? Once you have made a decision, be sure to contact a Short Sale Specialist Realtor  to better guide you on your decision. Contact us now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a New Orleans short sale Realtor? Look no further! Our stop Louisiana foreclosure specialists provide FREE short sale expert services to New Orleans homeowners in hardship. Call today to see if you qualify for a short sale! Need a New Orleans Distressed Property Expert in short sales to offer free Chase short sale services? Our New Orleans area Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Louisiana Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Five ways to avoid a Foreclosure

Many homeowners have been facing ugly foreclosures ever since the real estate meltdown. A foreclosure generally means the probability of losing one’s home, and one of the culprits in this sad reality is the ongoing economic slump that have resulted in massive unemployment rates. In addition to this is the increase in the mortgage loan payments or an increase in expenses because of unexpected costs and expenditures. For those who are going to face the inevitability of a foreclosure, their primary concern is how to avoid this ugly situation. And for them, help in any kind of way is the best solution to their financial problem. Below are the five ways to avoid a foreclosure, which any homeowner can opt to choose so as not to lose their home completely without something in return.

Refinance

The first option in avoiding a foreclosure is getting the traditional refinance method. Usually this option is for homeowners who want to take advantage of lower market rates and who are updated with their monthly amortization.  Yet, many lenders are now accepting refinancing for homes facing a foreclosure, provided that the homeowner meets several requirements.  A distressed homeowner can take advantage of a refinance by going to another or different lender. This new lender will then be the one who will bear the existing home loan and change it into another/new home loan. The result of this is that the homeowner will carry a new loan with different terms and one where the monthly amortizations are just about to start.

One of the advantages of this kind of option in avoiding a foreclosure is that the homeowner can take advantage of a lower interest rate if current market rates are low. Moreover, this can also permit the owner for term adjustment; an originally shorter term loan of 15 years can be changed into a long term loan of 30 years. Usually, the requirement that a homeowner should meet in order to utilize a refinancing is a substantial equity on the property.

Mortgage Relief

One of the five of ways to avoid a foreclosure is a mortgage relief. If the homeowner is sure that he cannot pay the mortgage on time, this should be relayed to the lender for quick solution. The lender for instance, may agree to extend the period of time that they would normally foreclose a home. Lenders usually give homeowners three months before they would foreclose a home yet by talking to the lender, a homeowner may be given a mortgage relief and thus, extend the period of time before the house is foreclosed; perhaps more than the usual three months. The downside of this option in avoiding a foreclosure is that the homeowner is merely delaying the foreclosure of his house. If his financial situation is the same throughout the extension the lender gives him, the inevitable of losing his house to a foreclosure will eventually happen.

Forbearance

If the ugly truth of a foreclosure is impending, one of the five ways to avoid a foreclosure is by seeking forbearance from the lender. In forbearance, the lender will have the option to stop or reduce the amount of payments that comes due every month so the homeowner can bring his financial health back. The advantage of this option in avoiding a foreclosure is
that during the time the forbearance is in effect, the homeowner can use his money to clear off other bills or debts. This will also give the homeowner the opportunity to pursue a better high-paying job so he can resume paying the mortgage.

In a cursory look, it seems that the homeowner is free from paying his mortgage; forbearance does not work this way. The homeowner may be free from paying his loan for some time but he still has to pay for the unpaid amortizations plus interest once the forbearance is over. 

Loan Modification

The fourth option in the five ways to avoid a foreclosure is loan modification. Although the main goal of this option is to modify the loan in order to clear off the unpaid amortizations and merge them with the principal, a homeowner can request for a change in terms of his mortgage, rate type (from fixed to adjustable or vice versa), and interest rate as well. This option however, may only be applicable for homeowners who have good credit score, sufficient income, and only one month to three months late with their payments. If these requirements are met, one can just call his bank (current mortgage holder) and ask for a loan modification.

The only drawback to this kind of method in avoiding a foreclosure is the typical inability of homeowners to juggle different kinds of credits and debts; a situation where most homeowners facing a foreclosure are in.

Short Sale

When all options to avoid a foreclosure have been considered and given thought and yet, a foreclosure is still sure to happen, the last resort and option for the homeowner to do is to go for the short sale option. In this option, the bank or lender will rather allow you to sell your house for less than what you owe them than face foreclosure procedures themselves. The difference between the selling price and the loan amount is the reason why it is called “short” sale. In the government-sponsored short-sale alternative under HAFA, homeowners are subsidized up to $3,000 for relocation by the government. However, you have to meet the requirements set by HAFA to avail of this subsidy.

These all in all are the five ways to avoid a foreclosure. Every option presented here has its own pros and cons.  And the best way to sort these out and pick the best option is for the homeowner to consider his situation/overall financial standing and see which of these five ways to avoid a foreclosure meets his needs most. To better understand any of the following options, you should contact one of our Short Sale Specialist Realtors. Our agents acquire the knowledge, skill and experience it takes to help you avoid a foreclosure on your home. Contact us right away and let’s stop foreclosure from ruining your life!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a New Orleans short sale Realtor? Look no further! Our stop Louisiana foreclosure specialists provide FREE short sale expert services to New Orleans homeowners in hardship. Call today to see if you qualify for a short sale! Need a New Orleans Distressed Property Expert in short sales to offer free Chase short sale services? Our New Orleans areaDistressed Property Expert real estate agents are here to help, and are Certified or trained in the Louisiana Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

 

How to do a Short Sale Broker Price Opinion

The importance of learning how to do a short sale BPO must be taken in the context of the different options that are being presented to homeowners facing financial challenges. Undoubtedly, when a homeowner is facing forfeit of property, some of the solutions that are being presented are foreclosure, loan restructuring, and short sale.

Among these, short sale is considered as the most viable solution because it helps to completely settle any outstanding obligations to the lender. Therefore, there is a vital need to understand how to do a short sale BPO. Essentially, BPO or Broker’s Price Opinion is similar to Comparative Market Analysis (CMA) in the sense that the agent helps the seller to identify the list price of the property.

With the BPO however, the lender provides their form as well as the guidelines of how it should be done. This means that how to do a short sale BPO is dependent on whom the lender is. As a result, it is equally important to realize in the context of how to do a short sale BPO that often, the estimated value will not match the perceived real world value of the property. The option to do a BPO instead of an appraisal is based on the relatively lower cost involved.

The Keys on How to do a Short Sale BPO

In understanding the keys on how to do a short sale BPO, it is vital to note that regardless whether an appraisal or a BPO is used, everything will still undergo some type of audit upon submission to the lender. This means comparison reports covering desktop valuation including review of online comparisons may be undertaken. This also establishes the fact that the BPO represent the most critical process in the completion of a short sale procedure.  Keep in mind that with a short sale, it is not enough that the homeowner would want to take up this solution. Before any implementation of a short sale can be done, it must be approved by the lender. In this context, the lender takes into consideration if the payoff will be substantially low enough for any buyer to accept.  This means that by learning how to do a short sale BPO you can actually influence some of the critical steps involved in the entire procedure. Presented here is how to do a short sale BPO, to ensure a successful approval of the short sale proposal.

1. Scheduling of the meeting. In the context of how to do a short sale BPO, this means having a face to face with the Realtor in order to facilitate the preparation of the BPO. In terms of the Broker’s Price Opinion, there are instances wherein the valuation of the property is done by a real estate broker or at times an actual appraiser. The determination of who actually does the BPO will be left to the discretion of the lender.

2. Preparing for the BPO. It is vital to understand that the goal is to show a lower value for the property by properly noting any imperfections, and giving the impression that it is more of a liability than anything else. So in the context of how to do a short sale BPO you may need to go to the local police department in order to gather crime statistics in the neighborhood if required.  You may also go online to look for potential sex-offenders in the area to get accurate details. It is likewise important to know based on how to do a short sale BPO that reference sales of at least three similar properties in the area be taken to support the offer of the buyer.

3. Meeting the BPO agent in the property. It going through a short sale BPO, it is important to note that the property should be personally inspected by the agent to ensure that they are aware of the condition. Keep in mind that the agents are hired by banks so they are actually looking after the interests of the bank.

However, in order to adequately prepare the BPO you must realize that this is the vital interaction that can affect the entire process. By understanding the financial hardship the homeowner is experiencing the evaluation can be more or less beneficial to both the lender and the seller.

4. Bank reception time. When learning about how to do a short sale BPO, you must realize that it would take at least three days before the bank can receive the BPO. This means that you cannot contact them before that time because they will have no idea about your property yet. After this time however, you can contact them to find out if they have decided if the offer of the buyer is adequate enough for the coverage of the short sale payment. This actually forms the basis of the approval.

5. Follow up short sale status. In order to properly learn how to do a short sale BPO, you should also take into consideration the proper follow up method. Normally calling at least once a week to check on the status is an acceptable practice. Eventually, the lender will provide a counter offer or perhaps may request for additional information to support any offer. These can include other documentation that the BPO agent may not have included like repair estimates for example.

6. No maybes. Keep in mind that a short sale can be time sensitive depending on the actual financial condition of the homeowner. This means that in the process of learning how to do a short sale BPO you may need to go back and forth a number of times between the buyer and the lender to make sure that you get either a yes or a no.

Remember that with a short sale, a maybe is never acceptable. It is equally important to note that every time a counter offer is submitted a new HUD must be prepared. Once an agreement is reached the short sale payoff must be put in writing.  When all of these have been taken care of, do not forget the most important thing of all, making sure that the buyer has the funds for the accepted payoff. In the context of how to do a short sale BPO, you must realize that if the buyer cannot confirm the payment within 30 days, you would need to consider a new buyer and repeat the entire process. I highly recommend contacting one of our Short Sale Specialist Realtor’s right away and let’s start your short sale process and end it in success; after all, it’s time to live your life the way you have always wanted too!

 

Reasons Banks Reject Short Sales Before a short sale is granted to a homeowner by the lender, sets of conditions varying from bank to bank must first be met by the homeowner. Knowing and understanding exactly how a bank looks at a short sale and under what circumstances a bank allows it to happen will enable the homeowner to make a short sale application package that has a higher chance of being accepted. A short sale is usually the last resort of a homeowner who is faced with foreclosure or a crippling financial hardship, and selling their house for less than the mortgage amount on a short sale has to be approved first by the bank. But why are some short sale requests declined? In some cases, qualifications and requirements set by the bank may not have been met or the actual application for a short sale may be lacking requirements, causing the short sale arrangement to subsequently be rejected and forcing the homeowner to continue paying for the remainder of the mortgage or face foreclosure proceedings. Short sale consequences appear negatively on the homeowner’s credit report, but a foreclosure is a much worse scenario as it can also have a detrimental effect on any possible future employment prospects and loan applications. Allowing a short sale to happen is in the best interest of the bank as well as for the homeowner, so it is best to understand the short sale rules and why the bank will deny a short sale on a home. Understanding a short sale from the lenders point of view will help a homeowner avoid rejection on his or her application. Issues on the listing price of the house- The normal tendency is for a homeowner to offer the house at a much lower price to entice more buyers. This is usually a bad decision and is frowned upon by banks. If you are the homeowner, then they must hire a knowledgeable Realtor to price the house accordingly by making an accurate appraisal or a BPO (broker price opinion) and quote that short sale price on your hardship letter for short sale sent to the bank. Banks may not find it appealing to perform costly home repairs on foreclosed homes, thus allowing a short sale may profit them in the long run. Moreover, a broker price opinion will confirm the selling home prices in the same neighborhood and is standard in a short sale application. Negotiate with the bank using that price and not something that you produce from your own discretion. Comparative market analysis on the other houses in the same neighborhood is also done before the bank will decide if foreclosing is a beneficial exit strategy. An incomplete short sale application package- The bank will need a set of documentation attached to the short sale application package. Make sure that all the forms are completed before turning in your short sale application to the bank. Not only does the paperwork have to be complete, but they must also prove that the mortgage payments are beyond what the homeowner can afford to pay. And that there are no assets that can be possibly liquidated to mitigate the financial hardship or that future income will not suffice either. In addition to the hardship letter for a short sale, bank statements and income pay stubs will be required of you and a well documented monthly budget showing household expenses. The hardship letter is not satisfactory- An unconvincing letter of hardship submitted alongside the short sale application package will make the bank reject a short sale application. The letter must establish and specify exactly what financial hardship the homeowner is experiencing currently and how a short sale would be feasible. Remember that if the homeowner has mortgage insurance on their loan, then it will be harder to convince the bank that allowing a foreclosure is in their best interest. Make sure that the wording of your hardship letter is sufficiently detailed and substantiates your claims of financial difficulty. Profit and loss statements with a monthly budget must be clearly itemized. Proof of little or lack of assets must also be mentioned. Complications involving the short sale buyer- Banks also reject short sales on homes when an interested buyer is not pre-approved or doesn’t qualify for financing to close on the sale for any reason. The buyer must have secure and solid financing base such as employment. He must also maintain good credit and must pass the other qualification measures set by the bank. Typical requirements for the short sale buyer will be a credit report, proof of assets to secure the transaction, and a letter of pre-approval from bank to bank with the actual sales price of the home denoted on the letter. A reasonable deposit will also help tremendously on getting the short sale approved. The bank is not the lien holder- Confirm and track who exactly is the holder of the lien before you submit the short sale application package. There are cases wherein the bank processes your mortgage payments, but it is not the right party to grant the short sale to proceed.  Get the name of the title company first to establish the correct lien holder, then direct and address the short sale application package there. Giving up and letting the bank foreclose on your home must be prevented at all costs. Considering the economy, it could be very difficult to get another loan in the future if you allow your home to be foreclosed on by the bank. A bad credit rating is disastrous and can prolong you from recovering financially. Selling your home via short sale, may be the perfect remedy. Then there’s only one hurdle to overcome and that is getting it approved by the bank. Research and hire a professional for advice before you turn in your short sale application. Knowing what you need and understanding how the bank looks at short sales will help you get the short sale application approved. To contact a Short Sale Specialists or for more information call 1-877-737-4903. www.Short-Sale-Specialists.com 1-877-737-4903 Ask a local short sale specialist! Looking for a New Orleans short sale Realtor? You have come to the right place! Our Louisiana stop New Orleans foreclosure specialists provide FREE short sale services. Call today to see if you qualify for a short sale from one of our New Orleans Short Sale Specialists! Our specialists are trained in the HAFA government program. Copyright First Coast Realty Associates 2011

 

Do Loan Modifications Really Work? Having a home of your own is one of the biggest dreams that people have today. Such is the emotional attachment that people have towards their home and this is the main reason that they will put in all the best possible efforts that they can. What happens is in most of cases people usually do not have capital to be able to buy a property; this is when they will approach lenders for loans. The sanctioning of a loan and getting hold of the property is an easy task, but difficult part is yet to come. This is when it comes time to pay the debt back. It is a customary tradition that you have to pay back the money that you borrowed along with the appropriate interest, in installments. But when the borrower is not able to make the payment on the required time, the debt on him as well as the property keeps on increasing. You will need to state where you are no longer capable of paying back what you had borrowed and then the lender may move forward the petition for a foreclosure. For all those who are unaware about foreclosure, it is a legal process in which the lender takes over the security asset that he had obtained from the borrower at the time of the lending. The idea is to protect the interest of the lender when the situation is such that the borrower is no longer able to pay back the dues or is not able to fulfill any other financial responsibilities that he has towards the lender. What most of the people do not realize is that apart from the process of foreclosure, there are many other options available that can be done, loan modifications being one of them. But then there has been one question that has been around for a while, do loan modifications really work? As the name itself suggest loan modification is all about making the required changes in the repayment structure of your loan, so that you can pay off your debts in a more effective manner. The main thing is that this can be the option if and only if you are unable to pay back the money that you need to in the pre defined time frame, in the pre defined installments. You would be given a whole new scale, which would be set as per your requirement and needs, but only after the consent of the lender too. So as far as initiating the process of a loan modification is concerned, there is a definite procedure that everyone needs to follow. First of all you need to come out and declare that you are unable to continue with your old payment scale and sit down and discuss the new terms with your lender. But one thing that most of the people are unaware is that these loan modifications are not as useful as they might seem to you, which is the reason people always ask the question, “Do loan modifications work?” After all the bank officials would want more profit for their organization and would concentrate on it itself, rather than helping out the troubled. Even though the option of loan modification might sound like a lucrative offer, the truth is that it might end up costing the lender an even bigger sum. So always make sure that you are totally aware of the new terms and conditions that would be set up, when you apply for loan modification. Though new installments would be payable, the additional interest that would be added in from additional length of payments would add up over time. A short sale would be a beneficial option for you. You can opt for a short sale and it would act as a permanent solution to your problem. There are many online agencies and forums that come forward and help the ones who are troubled financially and are in debt, providing with them with all the possible assistance possible. When choosing short sale vs foreclosure choose short sale to help you out long term! For more information on how to do a short sale or if you would like to see if you qualify, contact a short sale Realtor today! 1-877-737-4903 www.Short-Sale-Specialists.com 1-877-737-4903 Ask a local short sale specialist! Looking for a New Orleans short sale Realtor? The search is over! Our Louisiana stop New Orleans foreclosure specialists provide FREE short sale services. Call today to see if you qualify for a short sale from one of our New Orleans Short Sale Specialists! Copyright First Coast Realty Associates 2011

 

Short Sale Tax Ramifications Before making any decisions regarding your property and the options available, it is usually advisable to be aware of the consequences of the particular decision that you seek to make. This also applies in making the decision as to whether to do a short sale. It is important to know all the costs associated with a short sale before deciding on one because there might be better alternatives available for you. It is always the best decision to act only when fully informed. Taxes is one of the factors that any home owner intending to do a short sale should consider before making an application to the lender to do one. This is mainly so because the amount forgiven is sometimes regarded as income by the government. This therefore means that after the sale, the government may still want you to pay taxes on the difference between the mortgage amount and the proceeds of the sale. It implies that you will have to look for an additional source of income so as to pay the government. Therefore, to make the best decision possible as to whether to settle for a short sale or not, the amount that may be taxed should also be considered. The general rule which the IRS applies is that where any person’s debt has been forgiven, the amount of debt that the creditor has not claimed from the borrower shall be regarded as income for tax purposes. This is however not the case where a residence is concerned because of the provisions of the Mortgage Forgiveness Debt Relief Act of 2007. The main provisions of this Act have the effect of excluding up to $2 million of debt forgiven from taxation. This makes the tax laws a little bit softer to home owners so as to make it easier to pick themselves up again. This reduces the weight of the debt burden since if this was to be considered taxable, it would have meant that the persons who have their homes foreclosed would be indebted to the government. The limit of $2 million which is available to homeowners is set at a lower amount of $1 for any persons who are already married and who usually file their tax returns separately from each other. Included in the list of the debts that qualify to be exempted from taxation when they are forgiven is a refinanced debt. The debt must however have been used in making substantial changes to the main home of the borrower aimed at improving its value. This implies that where the debt is used for other purposes other than improving the main home, it will not be considered for tax exemption when it has been forgiven. The same applies to the instance where it is used to make major modifications on a second home. There is however a condition as to the type of debt that when forgiven, one can enjoy this tax exemption. It is provided that for the debt to qualify to be one which can be subject to the exemption, the amount must have been used in the development of the main residence or to build or buy it and that the property in question must have been used to secure the debt. Where the debts which have been forgiven by the lender relate to a house, which has been rented out, property being used to conduct business, loans taken out on cars and debts arising out of use of credit cards; these kinds of debts shall not enjoy the tax exemption. These debts when forgiven will be considered as income to the borrower and thus necessitating taxation by the IRS. Although the amount of debt forgiven, in cases where it qualifies to be exempted, will not actually cause a cash out flow in terms of taxes, it should be reported to the IRS. This is because it is still regarded as income and all that the Act does is to exclude the amount of debt forgiven from being taxed. This amount should therefore be filed together with your tax returns. To be considered for exclusion of payment of taxes due to debt forgiveness that arises after the conclusion of short sale, one will have to make the application by claiming through the Reduction of Tax Attributes Due To Discharge of Indebtedness form. With the form, one should attach his or her tax returns. The fact that taxes are usually paid to a party other than the lender does not mean that they should not be considered as costs of the short sale. So make sure to consider the effects of a short sale on your taxes when deciding. Where the debts forgiven qualify for the tax exemption provided under the Mortgage Forgiveness Debt Relief Act of 2007, there will be no factoring in of the tax element since the debt will not be taxed. Where however it does not qualify, it should be treated as an additional expenditure in case one does a short sale. Curious to know how long a short sale takes? Want to know additional information on the effects of a short sale on your tax returns or to also learn how it can impact your credit score contact the Short Sale Specialist Network now! 1-877-737-4903   www.Short-Sale-Specialists.com 877-737-4903 Ask a local short sale specialist! Are you looking for a New Orleans short sale Realtor? Look no further! Our Louisiana stop New Orleans foreclosure specialists provide FREE short sale services. Call today to see if you qualify for a short sale from one of our New Orleans Short Sale Specialists! Copyright First Coast Realty Associates 2011

 

Wells Fargo Short Sale process and Guidelines

With some of the highest percentages of short sale approvals Wells Fargo sends a message to the public, that all of their clients are well taken care of. If you find yourself in a hardship you thought would never happen, and now you’re forced to consider a short sale, don’t worry! With the friendliest staff, Wells Fargo makes it easy to communicate with their homeowners and complete the short sale in record time when compared to other servicers.

If you are one of the many facing foreclosure and are considering a short sale, but are not quite sure what it is, than you have come to the right place. A short sale is where your lender agrees to accept less than the current balance on the home due to the decreasing in the home’s value in today’s market. A short sale is for homeowners that have no choice but to sell and cannot continue to keep paying their mortgage. You cannot choose to short sale on the home if you can continue to afford the original agreement.

To find out if you qualify you must first find a local short sale agent to assist and send in a short sale package. Within this package will contain your personal documents that prove you are unable to make ends meet. You will need a hardship explaining how you were current and what happened that resulted in you being behind. You will need 3 months of current bank statements showing where you spend your money on necessities, 1 month of current pay stubs from all borrowers, proving your income. Additionally, you will need your last year’s tax returns and W-2’s, and a financial worksheet showing your expenses verse income and how the difference is not maintaining your cost of living.

You may have heard of HAFA. This is a government program “Home Affordable Foreclosure Alternative” made to help avoid foreclosure and also offer $3,000 back towards relocation expenses to complete a short sale. For HAFA program guidelines and information contact a short sale specialist 1-877-737-4903.

Most important to all short sale processes is finding a local short sale specialist. Our network for nationwide realtor’s primary job is to help homeowners stop foreclosure. If you are interested in doing a Wells Fargo short sale, a short sale specialist will help sell the home for free! The lender will pay the real estate and brokerage fees so there are no out of pocket expenses for you! Contact your local short sale specialist today. 1-877-737-4903

Quick Over view to your Wells Fargo short sale package Guidelines:

• Hardship letter signed and dated
• Last three current months of all bank statements from all banks
• One full months cycle of your most current pay stubs
• Last year’s tax returns and W-2’s
• A financial statement
• Short sale specialist 1-877-737-4903

 

A New Orleans Distressed Property Expert Can Save your Home from Foreclosure

With the economy in the state it is has made the real estate market take a huge hit. Not to mention the large number of people who are unemployed and trying to make ends meet. If you are one of the many who is falling behind on their mortgage and it has you stressed out, you may need to look into your alternatives.

With the government programs available it’s easy to avoid foreclosure. There is HAFA, the Home Affordable Foreclosure Alternatives program, where when you choose one of the options within the program you may receive up to $3,000.00 in relocation assistance help.

The options within the program are a deed-in-lieu (DIL) and a short sale.  A short sale is when you sell the home your lender agrees to accept less than the full balance based on the homes new current market value in order to avoid a foreclosure.

A short sale will be an easier credit recovery than letting your home foreclose. When trying to find your way through the options and paper work will your stressed and unsure, you may want to consider hiring a Distressed Property Expert. A Distressed Property Expert are specially trained in knowing all the avenues and documents that are specific to your qualifications and needs and can achieve them in an efficient amount of time successfully. This will take the burden off your hands and give you a more permanent fix than foreclosure.

If you’re interested in finding a Distressed Property Expert in New Orleans at no cost, call one of our short sale specialists today 1-877-737-4903. You owe it to yourself to have a professional take on the battle for you and provide the knowledge and understanding to ease your mind and fix your problem.

While it is important to have a trained short sale specialist there is no substitute for experience. To contact us today to get in touch with a experienced short sale specialist call 1-877-737-4903