Short Sale and Foreclosure Information for Sellers

If you, or someone you know, owes more on a mortgage than the home can be sold for in today’s market, you deserve to be educated on options that will save you and your loved ones from the long term financial, legal and tax consequences faced by those who have had to sell their home via the short sale process or lost their home by foreclosure. 

At the bottom of this page you’ll see a series of articles I created to provide you with the latest information about the foreclosure process, alternatives to foreclosure and government programs recently implemented to help homeowners who are behind on their payments, ‘upside down’ on their homes or facing imminent foreclosure.

Contrary to what you may have heard, lenders actually want to avoid foreclosure whenever possible.  That’s why they are accepting more short sales and deeds in lieu of foreclosure every day….to eliminate unnecessary and costly foreclosures.  On average, it costs a bank between $50-$75K to foreclose on a single family residential home.

The complex details involved with short sales and foreclosures are unique calls for specialized expertise. Contact an agent such as myself that has earned the Short Sale and Foreclosure Resource (SFR) Certification through the National Association of Realtors. I can eliminate the confusion and ease your frustration as I am committed to guiding you through the process, explaining the various options available to you, setting realistic expectations, and streamlining the path to help you avoid foreclosure.

Distressed properties have entered the mainstream of real estate transactions. Respondents in the recent Keller Williams survey revealed that 45 percent of all homes sold in the United States are currently “distressed properties,” and an estimated 300,000 foreclosures are entering the market each month. In NC, it is estimated that 21-30% of total home sales are currently distressed properties.

While the average distressed property sold for 20 percent below current market value, the discounted purchase price on short sales and REOs tends to range between 10 and 40 percent.  The Keller Williams survey revealed that 40 percent of survey respondents indicated that the desire to “stop paying rent” was a prime motivator in the property home purchase. Regardless of the market, a home is a solid investment. Distressed properties have simply lowered the financial barriers to entry.

Often, distressed properties are in excellent condition and in very desirable locations. Homeowners in every price bracket are affected by the economy. Bidding wars happen in some markets, but they mainly occur in the most distressed ones. As in any market, the most competitive offers are most likely to win.

Below are the articles I’ve created to help you understand some of the more important points when seeking alternatives to foreclosure or selling a distressed property.  Please feel free to call me anytime at (910) 787-2160 to ask any questions you may have or to arrange for a personal consultation.

Articles

The Foreclosure Process

Alternatives to Foreclosure

How to Postpone a Trustee Auction

Short Sales

Short Sales – VA

Short Sales – FHA

Strategic Defaults

Consequences of Foreclosure vs. Short Sale

Government Programs to Assist Home Owners

Home Affordable Modification Program (HAMP)

Home Affordable Foreclosure Alternative – Treasury Version (HAFA)

Home Affordable Foreclosure Alternative – Fannie Mae Version (HAFA)

Home Affordable Foreclosure Alternative – Freddie Mac Version (HAFA)

Home Affordable Refinance Program (HARP)

Second Lien Loan Modification Program (2MP)

Home Affordable Unemployment Program (UP)

FHA Short Refinance Option

Mortgage Forgiveness Debt Relief Act of 2007

Deficiency Judgments

Avoid Foreclosure Scams

 

What is an SFR? 

The complex details involved with short sales and foreclosures are unique calls for specialized expertise. Contact an agent such as myself that has earned the Short Sale and Foreclosure Resource (SFR) Certification through the National Association of Realtors and who is committed to guiding you through the process, setting realistic expectations, and streamlining your path to home ownership.

If you are in a situation where your home is “underwater” due to falling home prices, you are unable to make your current mortgage payments and you are considering pursuing options such as a short sale, deed in lieu of foreclosure, strategic default or even foreclosure, there could be drawbacks that I, as a real estate agent, cannot advise you on. For your protection, I suggest that all borrowers:

• Obtain legal advice from a competent real estate lawyer regarding deficiency judgments
• Call an accountant or CPA to discuss short sale and foreclosure tax ramifications.
  

Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale or foreclosure will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

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Joanne Flick, Broker/Realtor® | 3840 Henderson Dr., Jacksonville, NC 28546
joanne@joanneflick.com | Direct: (910) 787-2160 | Fax: (509) 351-6124