Homepage

Debra Helps Homeowners

We understand the stress you are dealing with as you battle this economic crisis. We do not make judgements about your financial decisions, and are simply here to help you find a path to a brighter future by avoiding foreclosure.

If you are behind on your mortgage payment or anticipate that you will be in the near future, we encourage you to learn about all of the options available to you. As your No Cty San Diego Short Sale Agent, our goal is to help you determine which option is best for you. All of our services are free to you the homeowner. Please contact us today for a free, no-obligation consultation to determine your best option.  We urge you to act now,  do not ignore the problem!

 What is a Short Sale?

In brief, a Short Sale is when a lender agrees to accept less than the amount owed on a mortgage in order for a property to be sold. In addition to being “underwater” on their mortgage, the seller must have a verifiable hardship that is accepted by the lender, must have a monthly shortfall on income and thirdly, be financially insolvent.

The Short Sale process has improved dramatically since April 5, 2010. That is when the US Treasury implemented the HAFA Short Sale program. Up until that date, the Short Sale process was not standardized, and thus led to much confusion and delays, so Short Sales had the reputation of taking forever to close and often not reaching the closing table. There has been a marked improvement in how quickly deals close, and indeed participating lenders may be penalized if they do not adhere to these stringent timelines.  If you are a buyer and had been conditioned to avoid Short Sales, you may want to reconsider as deals now close much faster than before and there are some excellent values on offer.

Will I qualify for a Short Sale?.

As your Oceanside Short Sale Agent, we will help you determine if you are a good candidate for a Short Sale. Watch this video for a brief overview of the requirements. 

I keep hearing about HAFA, what is that?

HAFA stands for Home Affordable Foreclosure Alternatives program. It is a standardized program which most large lenders and some smaller ones have agreed to honor.  It sets out specific guidelines and timelines to qualify homeowners and respond to offers and terms.The Original HAFA Short Sale program applied only to non GSE lenders, meaning those who did not resell their loans to either FannieMae or FreddieMac.  As of August 1, 2010, both Fannie and Freddie have implimented their own versions of the HAFA Short Sale program, so now most homeowners should be able to take advantage of one of the HAFA Short Sale programs. 

Which HAFA program applies to my loan?

As your Oceanside Short Sale Agent, we will assist you in determining which HAFA Short Sale program you may qualify for and we will explain in detail the requirements and benefits that apply. You may search online to see which program your loan may fall under.

www.fanniemae.com/loanlookup

ww3.freddiemac.com/corporate/

 If your loan is not found on either of these websites, then you may qualify under the original HAFA program. Not all lenders participate in the HAFA program, so if your loan happens to be with one of those non-participating lenders, they may have their own guidelines for a Short Sale. Your No Cty San Diego Short Sale Agent will exhaust all of the possibilities to help you to complete a Short Sale and avoid Foreclosure.

Should I try a Loan Modification before a Short Sale?

As your No Cty San Diego Short Sale Agent, one of the things we will review with you prior to beginnnig the Short Sale process, is if you should attempt a Loan Modification first.  It has been widely reported that the Loan Modification program administered by the government, called HAMP, has been less than successful, but it may be an option for you. CAUTION: You should not pay upfront fees to anyone other than an attorney for assistance with a Loan Modification or a Short Sale. Watch and learn more about Loan Modifications vs Short Sale.

Why would a bank agree to a Short Sale?

Many homeowners are hesitant to attempt a Short Sale because they think their lender would not cooperate.  This is a myth and in fact the opposite is true. Banks will always prefer a Short Sale to a Foreclosure. The reason is quite simply that they loose less money on a Short Sale than if they have to take the property back in Foreclosure, repair and maintain it, pay taxes, pay off liens and still pay a commission to a Realtor to sell it later.  In addition, banks must keep reserves of a multiple of the property value, which reduces the money they can lend.

What is Foreclosure?

If your property is part of a Homeowner's Association and you fall behind in monthly maintenance or association dues, the Association has the right to Foreclose on your property. In this case the timeline is usually shorter.

Please consult with an attorney if you have specific questions about the Foreclosure process.

Q&A with your           No Cty San Diego Short Sale Agent

How much do I have to pay you to help me with a Short Sale?

Unlike some other real estate agents, your  Short Sale Agent does not charge any upfront fees or any other fees at any time. We are compensated by commission paid at closing by the primary lender.  We split this commission with any cooperating broker who may represent a buyer.

Does my home have to be worth a certain amount for you to help me?

No. We understand the agony and stress that many homeowners find themselves in nowadays.  We believe all homeowners need and deserve our help. We will handle a Short Sale of your home without regard to the asking price. This does not mean we will accept everyone as a client.  There are other criteria we use to determine if we are best suited to helping your particular situation.

Can I do a Short Sale on a second home or investment property?

Yes. You may sell any number of properties by the Short Sale process.  The lender will look at your 'big picture' financial position and you will need to disclose all of your assets including other properties. Second homes or investment properties are not eligible for the HAFA Short Sale programs.

Will the condition of my home impact a Short Sale?

No. The condition of your home has no special bearing on a Short Sale.  Keep in mind that a Short Sale is still a sale, and you must attract a buyer.  We encourage you to keep your home in good condition, but it is not necessary to make major repairs in order to complete a Short Sale.

What documentation is required for a Short Sale?

There is substantial paperwork involved in a Short Sale and we ask you to assist us by providing the most recent 3 months statements for all your financial accounts, including bank statements, 401k, investment accounts, the last two years tax returns and two most recent pay stubs.  As the process is ongoing, we ask that you save new relevant documents as you recieve them, so that we may present them to the bank when an offer is received. In addition, you will be asked to sign an authorization for us to represent you, disclosures about your property and miscelaneous documents. A Short Sale differs from a regular sale in that you must provide your Realtor with all of this financial information.  Rest assured we treat all your confidential infomation with the utmost of care.

How much less will the bank accept on a Short Sale?

There is no easy answer to this question. Even the same lender will make adjustments to their policy depending on their risk exposure. Very ofthen the bank is only servicing the loan and they will have to get approval from the investors who own it. We will be happy to disuss this in more detail with you.

If I do a Short Sale, how will my credit score be impacted?

As of today the major credit bureaus do not have a code to indicate a Short Sale on a persons credit report.  If you are late with your payments or do not pay off your loan in full, your credit score will be penalized as normal. Therefore the impact of a Short Sale on your credit will be much less than if your home is lost to Foreclosure. Typically a homeowner is eligile to buy another home 2 years after a Short Sale, whereas they may have to wait up to 7 years to obtain financing after a Foreclosure. The other big diffference is that a borrower will always be asked if they have ever had a Foreclosure, not if they had a Short Sale.

Can my relative buy my home in a Short Sale?

No. A Short Sale transaction must be at "arms length", meaning there must be no relation between or among the parties involved. This means you may not sell the property to a family member, coworker, friend, neighbor etc. A real estate agent must list their Short Sale with another broker.

What are the tax consequences of a Short Sale?

All we can say is that there may be some tax consequences if you complete the sale of your home by the Short Sale process.  You may be liable for taxes on any amount forgiven by your lender, especially on second homes,  home equity loans and lines of credit. Please consult your tax advisor or CPA for an accurate assement of your personal situation.

Why does it take the bank so long to approve a Short Sale?

The good news is that since the introduction of HAFA, it now takes a lot less time to complete a Short Sale. At the beginning of the mortgage crisis, banks developed a bad reputation for being slow or nonresponsive with Short Sales.  This has changed recently as the banks have put systems in place to handle the volume of Short Sales.  Nowadays the biggest reasons for a delay in the Short Sale process are due to improper or incomplete offer packages being submitted to the banks, so it is important to work with a Real Estate Agent who understands what is requried to get a Short Sale completed. Another reasosn is the banks need to wait for approval from the investors who own the original mortgage.  Keep in mind that very few banks still own the loans they originated.  They usually sold the loans to investors and now collect revenue for servicing these loans.

If there are any questions we have not answered, please make a note of them and we will be happy to get you the answers.

                      Short Sale Agent

Debra Green, CDPE

Broker Associate

Sea Coast Exclusive Properties

DebraGreenHomes.com

760-828-8181-Direct

760-231-7222-Fax