We can help:
Many homeowners are caught in an unexpected situation. Their mortgage payments have increased, their income has been reduced and their homes have lost value. You may be experiencing a similar situation.

A Short Payoff or a Short Refinance is when your current Lender(s) reduce the principal balance on your mortgages and allow you to refinance or sale your home at current value. Over the past years fewer and fewer lenders have been willing to participate in this type of program. As a result the Short Payoff is becoming obsolete. If your lender specifically suggested this option to you, and you live in California, we may be able to help. Otherwise, your best option would most likely be a Short Sale.



How To Sell Your Home For Less Than What You Owe The Bank
(Called a Short Sale)

A Short Sale occurs when...

  • The SALE PRICE is less than the DEBT you must pay the bank

AND

  • The Lender/Bank allows you to sell for less than what you owe

Its crazy but the bank will allow you to sell the home now and take the $100,000 loss!


Why would the bank do this?

  • It costs the bank $50,000 to $75,000 to foreclose and hold a property for future sale
  • For every $100,000 foreclosed = $400,000 reduction in the loans they can make (eg $1,600,000)
  • The Banks lose power to raise money on wall street for every foreclosure

Bottom line: It’s a Win-Win

Does Your Property Qualify?


Q: Do you have any Equity in your property?

  • If YES, you qualify for a Traditional Sale.
  • If NO, you may qualify for a Short Sale.

1st Mortgage only - Best Chance
1st and 2nd Mortgage - Good Chance
Other liens - must be reviewed

  • Unemployment
  • Reduced Income
  • Excessive Obligations
  • Payment Adjustment
  • Unable to Sell
  • Military Service
  • Business Failure
  • Marital Problems
  • Incurable Problems
  • Unable to Rent
  • Serious Illness
  • Job Transfer
  • Death to Principal
  • Fraud
You understand you will not receive any money from the sale of the property.

Additionally, there is no guarantee, however, we will work diligently to close a successful short sale transaction.

Required Documents

  • Current Bank Statements for all of your accounts
  • Current Pay Stubs
  • Last 2 years Tax Returns & W2‘s
  • Personal Financial Statement
  • Hardship Letter
  • Last Mortgage Statement(s)

Benefits to You

A Short Sale greatly reduces the damage to your credit

  • The worst credit hit is foreclosure
  • Stays on credit for 10 years
  • Short Sale Results in late payments with satisfactory settlement of loan(s)
  • No embarrassing public notices and “Foreclosure For Sale” Signs
  • Generally no Deficiency Judgements
  • Can purchase again immediatly if payments are kept current

More Benefits to You

  • IRS income will be excused if this is your primary residence
  • IRS income may be excused for an investment property. (Form 982)
  • No cost to you! Realtor’s commissions, processing fee, and closing costs are paid by the lender
  • Outstanding Property Taxes are paid by the lender at closing

Consequences

  • Possible Deficiency Judgment (this is very uncommon)
  • If not your primary residence, 1099-C may be issued by the lender for difference between amount received and amount owed.
  • Always consult your Accountant or Tax attorney for any questions

Frequently Asked Questions

Q: How long does a Short Sale Take?
A: It may take up to 4 months and longer, and you may remain in the house.

Q: Must I clean up and fix the house?
A: No, but please provide detailed list of any problems or needed repairs.

Q: I’ve been served with Foreclosure papers
A: Notify us immediately, provide all the paperwork and we will assist you.

Q: I put money down when I bought this house...Can I get any money at closing?
A: No. If the lenders agree to accept less than what is owed to them, they will not allow you to benefit monetarily.

When/How do we start? NOW!

Action Steps:
  • Click HERE to begin.
  • Request paperwork
  • Listing Agreement
  • Borrower’s Authorization
  • Homeowner’s/Seller’s Disclosure
  • Provide us with mortgage statements, and HOA coupons (if applicable)
  • Get Required Documents together
  • We will begin processing your Short Sale immediately