Steven Spreafico´s SHORT SALE ADVANTAGES!
Steven is in Top 1% of CB Sunset Strips Agents
ARCHITECTURAL & ESTATES DIRECTOR
· HOW CAN I GET OUT FROM THE DEBT OF MY HOME?
· The SHORT SALE practice in today's softening real estate market, maybe a necessity. The SHORT SALE transaction is legal and can be a much more beneficial alternative to foreclosure or even bankruptcy!
· By saving your property from foreclosure, you carry a less of a burden. Allowing your home to proceed into foreclosure may adversely affect your credit for up to 7 years. For many sellers, the chance to buy another home in 2 years is the real motivation to do a Short Sale!
· Working with a knowledgeable professional knowing how to process , package and to present to the lender will increase your chances to a more successful transaction.
STEVEN'S CERTIFIED TEAM IS AN EXPERT IN SHORT SALES, CALL NOW!!!
Is any of this happening to you, Let Steven Spreafico help you?
· Have you been denied a loan modification?
· Do you owe more than your home is worth?
· Are your mortgage payments too high?
· Do you want to minimize damage to your credit?
· Did you experience a loss of income?
· Do you want to avoid a foreclosure and get a fresh start?
You are not alone... Due to the poor local Hollywood Hills, Sunset Strip, West Hollywood, Beverly Hills, real estate market in Southern California, and the nationwide Mortgage loan crisis, many California homeowners find themselves unable keep up with their increased mortgage payments, and many times the mortgage loan debt is more than the home is worth... in other words - No Equity left in the property. Many home owners are unable to modify the loan, nor re-finance the home. Unfortunately, many homeowners give up, because they think there is nothing they can do to stop the Foreclosure of the home. Well, there IS something you can do that's far better than a Foreclosure... it's called a Short Sale.
Drawbacks to Foreclosure Let Steven help you!
Few people, apart from the sellers who choose to buy and bail, really want to experience a foreclosure. Memories are made in a home, and losing it can shatter future dreams. Here are other drawbacks to foreclosures:
· The right of home ownership is stripped away.
· Homeowners return to the rental market as a renter.
· The bank may post a Notice of Public Sale on your front door.
· Your credit takes a nose dive, and a foreclosure will remain on your credit report for 10 years.
· Under Fannie Mae guidelines, without extenuating circumstances, you will not be eligible to buy another home for 7 years.
Benefits for Short Sale
· Retain some dignity in knowing that you sold your home.
· You won't suffer the social stigma of the "F" word: foreclosure.
· No mortgage payments to make, unless you choose to make them.
· You can meet the new owners.
· You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
· If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.
1.)Effective January 1, 2008, according to the "Mortgage Forgiveness Debt Relief Act of 2007," for those eligible, no taxes will be owed on any mortgage debt forgiven or written off as part of a short sale, foreclosure, renegotiation, bankruptcy or other such action on a principal residence. Please consult with your accountant, laws are always changing!
Wall Street Journal April 2008 Wall Street Journal April 17 08.pdf
Internet article about Short Sales Bankrate.pdf
MSNBC about Short Sales MSNBC ss.pdf
New Freddie Mac Guidelines short sales Freddie Mac.pdf
Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009)
Fannie Mae Short Sales Commissions Policy and Appeals Process
NAR´s Short Sales Website
Click here to view Steven's listings and sold inventory
Hollywood Hills, Sunset Strip Neighborhoods
· At one time, an occasional foreclosure didn't necessarily bring down the home values in a neighborhood. It was a deficiency on the homeowner's part. Perhaps the homeowner mismanaged his funds or was going through a nasty divorce. But when the number of short sales and foreclosures rise in an area, it is an indication of economic troubles, which can lower property values. Compared to a foreclosure, the short sale tends to be better for the neighborhood of Doheny Estates real estate, Sunset Plaza Dr., Hollywood Hills real estate, Sunset Strip real estate and Beverly Hills real estate! During a short sale, the property owner typically remains in the home until the new owners move in. With a foreclosure, the house may be empty and boarded up for months, bringing down property values.
Read more: The Advantages of a Short Sale & How Long it Takes to Close | eHow.comhttp://www.ehow.com/list_7342825_advantages-sale-long-takes-close.html#ixzz134hV621t
Want to Stop Foreclosure? Strategically Eliminate Mortgage Debt?
Steven knows your situation is unique, Steven will provide a FREE CONSULTATION to help you:
Explore your alternatives
Eliminate your mortgage debt
Protect your credit rating
Avoid common mistakes
Minimize your tax burden
Steven Short Sale is Free to Homeowners
Because short sales are often the best alternative to foreclosure, Steven´s certified team in Short Sale will work to provide the safest, most effective short sale program -- at no cost to you.
Free Consultation: We will spend time answering your questions and provide essential information to help you assess your options!
Complete Solution: We provide a full-service offering to give you the best chance to eliminate your mortgage debt without a deficiency.
Buyers are Interested in Short Sale Properties!
In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales in the Hollywood Hills, Sunset Strip neighborhoods!
For buyers, Hollywood Hills short sales and Sunset Strip foreclosures have become synonymous with "good deals." More specifically, international buyers are targeting these properties. Listing with an experienced agent, like Steven who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.
"How Long Does It Take To Complete A Short Sale?"
There are many factors that affect the amount of time required to complete a Hollywood Hills, Sunset Strip, & Beverly Hills short sale. The number of mortgages tied to a property is one major factor. For example, it normally takes longer to negotiate with two or more lenders than it does to negotiate with just one. The process also tends to take longer when a loan has private mortgage insurance (PMI). Nevertheless, homeowners have considerable control over both the result and the duration of a short sale. Success in all cases requires the assistance and participation of the homeowner throughout the process from start to finish. The actions of the homeowner more than any other factor determines success or failure as well as the time required to complete a Hollywood Hills short sale.
Contrary to popular belief, the bank´s decision is not exclusively based on the sale price. Banks review and evaluate short sale applications based on a host of criteria including the value of the property, the type and terms of the homeowner´s loan, the homeowner´s financial condition as well as the terms of the buyer´s loan. The amount of time any lender will spend to review a short sale application is not consistently predictable. In addition, the buyer and the buyer´s lender play an unpredictable yet decisive role in the process. To complicate things further, lender guidelines vary from bank to bank and foreclosure laws differ from place to place. Although these various elements make it impractical to accurately estimate the overall time frame, there are concrete steps you can take to significantly shorten the time required to complete a short sale. The following actions affect the duration of the process:
Actions That Delay a Sunset Strip Short Sale:
• Submitting incomplete homeowner paperwork or not providing required documentation timely. When facing foreclosure, time is not on your side-any delay reduces your chances.
• Overpricing the property. A property is worth what a buyer is willing to pay for it. You must put your property on the market at a price that will attract buyers--no buyer, no short sale!
• Hiring people who don´t know what they are doing. Banks routinely give priority to short sale applications that have the best odds of closing and discard applications when they are presented improperly or by someone who clearly has no prior experience. Steven's certifed team can help you!
• Loan transfers. Lenders often transfer mortgage loans to other banks. These loan transfers will normally delay the short sale process. By staying on top of your lender by calling or writing to them frequently, you can help to minimize the delays associated with a loan transfer.
Actions That Accelerate a Hollywood Hills Short Sale:
• Gathering all bank-required documents quickly.
• Giving realtors, who know the area like Stevn Spreafico, interested buyers, appraisers and home inspectors access to your property (These people need to get into your property in order to complete and close the short sale transaction).
• Continuing to pay all other property-related expenses not included in your mortgage payment (i.e. HOA or condo maintenance fees, utility bills etc.) When these expenses go unpaid, they often become liens against your property making it more difficult to close the Hollywood Hills, Sunset Strip short sale transaction.
• Terminating or not renewing rental leases with tenants. A vacant property is normally easier to sell than one with tenants. In addition, when your tenants move out, the loss of rental income will help convince your lender that your financial hardship is valid.
Your bank is not in the real estate business and does not want to own your Sunset Strip property. However, you originally applied to get a mortgage and you must also apply to get out of one--the process requires you to submit documentation just like you did when you bought the property. Failure to comply with your lender´s guidelines is a recipe for prolonging the process or getting your Hollywood short sale application rejected. The best way to speed your path to the finish line is to fulfill all document requirements quickly and completely, price your property competitively, work with experienced people like Steven and cooperate with everyone involved in the transaction.
"What Happens To The Unpaid Loan Balance After A Short Sale?"
Most people who are thinking about doing a Hollywood Hills short sale want to know what happens to the unpaid loan balance after the sale. Homeowners often ask me if they are going to be responsible for the difference between the reduced amount their bank receives at closing and the amount they actually owed for their mortgage. After a short sale, your lender will either:
1. Issue you a 1099C*
2. Pursue a deficiency judgment against you in court*
3. Do nothing
*A bank cannot issue a 1099C and pursue a deficiency judgment against you at the same time-they must choose one or the other
The unpaid loan balance after a Benerly Hills short sale will most likely result in a 1099C. By issuing you a 1099, your bank gets an immediate tax benefit from a short sale. The 1099 your bank sends you after a short sale can register as income, which may result in you owing taxes. However, there are many exceptions that exclude canceled debt for tax purposes , like maybe if your home is your primary residence, so a 1099 may not adversely affect you. You should speak with a competent accountant for advice on the financial consequences of a 1099.
After a short sale, your lender may pursue a deficiency judgment against you. A deficiency judgment only occurs if a bank sues a borrower for the unpaid loan balance after a short sale and wins the court case. If the bank wins, the borrower is legally required to pay the amount of the judgment (Note: retirement accounts are generally protected from creditors even if a bank wins a deficiency judgment in court).
Although it is a possibility, mortgage lenders rarely pursue deficiency judgments against borrowers after a short sale because the process is expensive and time consuming. Your lender would have to take you to court, hire local attorneys to file the lawsuit, get a judgment from the court and then have it enforced in the county where you live (assuming they can find you). If the lawsuit paperwork is filed incorrectly, the deficiency judgment can actually be overturned. Moreover from the bank´s perspective, if you had the money to pay a deficiency judgment, you probably wouldn´t have missed your mortgage payments in the first place.
Before a Hollywood Hills hort sale is completed, banks sometimes ask homeowners either to make a one time payment at the closing table or accept an unsecured promissory note for some or all of the unpaid debt being forgiven. Like collection calls, this is another attempt by the bank to reduce its losses. Sometimes bank representatives use scare tactics over the phone to threaten or intimidate borrowers. Aggressive collection agents have been known to lie in a desperate attempt to get more money from borrowers. It is always your choice whether to accept or reject a promissory note request from a lender.
So, how will you know what your bank will do with your unpaid loan balance after a short sale? Unfortunately, there is no way to know for sure. In most cases, it pays to be proactive and tell your lender exactly what you want them to do, which ideally is to accept the short sale as payment in full for your mortgage and give you a waiver of deficiency. You can call your lender and ask them to do this or simply write the request directly into the sales contract you sign with the buyer purchasing your property. There´s no guarantee, but your effort can only help your chances.
Steven has a super success rate in Short Sales!
"7 Tips To Writing A Persuasive Beverly Hills Short Sale Hardship Letter"
Most lenders require homeowners applying for a short sale to write a hardship letter. A hardship letter is a written explanation describing why a borrower is not able to make his or her mortgage payments. The thought of writing a hardship letter sometimes causes fear and anxiety in homeowners, but it´s really quite simple and if written properly, a good hardship letter can help a homeowner make a powerful case to their lender. Certain elements written into your hardship letter can help make your case to the bank while others can hurt your chances of getting a short sale approval. Here are 7 tips to writing a persuasive hardship letter:
1. Write it yourself. This is your story, only you can tell it convincingly, so make sure you write it.
2. Explain the events and personal circumstances that contributed to your inability to make your mortgage payments. Examples include: tenant problems, a medical condition or illness, job loss, job relocation, death in the family, divorce etc. Also, describe any additional circumstances currently making your financial situation difficult.
3. Describe all attempts previously made to sell your home either by you personally or through a real estate agent. Be sure to include all previous price adjustments. The fact that you´ve already tried to sell your home helps make a more compelling case to your lender that your financial hardship is real and that you are not just trying to walk away from your financial obligation.
4. Don´t blame the bank for your financial trouble in your hardship letter. Scapegoating the people that you are trying to convince to reduce your mortgage does not work to your advantage, so don´t do it!
5. Make sure your hardship letter makes logical sense. More specifically, make certain your hardship letter does not contradict any of the other personal documents your bank is examining as part of your short sale application (i.e. your bank statements, personal financial worksheet, pay stubs, tax returns).
6. Tell your lender that you want to avoid bankruptcy. If the bank believes that you intend to file bankruptcy, it will be less likely to seriously consider your short sale application.
7. Tell the bank what you want them to do. Although your ultimate goal in pursuing a short sale may seem obvious to you, it may not be to your bank. In your hardship letter, don´t forget to ask your lender to accept your buyer´s sales contract, approve your short sale application and forgive any deficiency that may arise as a result of the short sale
STEVEN'S CERTIFIED TEAM IS AN EXPERT IN SHORT SALES, CALL NOW 323 848 7755!
Steven's SHORT SALE ? REPRESENTING THE SELLER
Guidelines and Overview for Agents
The short sale proposal submitted to the lender must be prepared and packaged professionally to assist the lender in making an
informed decision. The following procedures should be adhered to when submitting an offer:
- Submit a complete proposal to lien holder(s)
- Provide an orderly presentation of documents as set forth below
- Include the borrower name, loan number and property address in the top right hand corner of each document
- Negotiate the offer to obtain the best price and terms prior to submitting the documentation to the lender
Preparing a well organized, professional package will ease the process for lien holder review and facilitate response time.
Note to Agent: This Guideline and Overview is intended to identify documents and forms that will be useful to lien holder(s) in facilitating short sale proposals. Nothing in the Guideline and Overview relieves the Agent(s) of the responsibility to maintain a complete file pursuant to the required check list of documents, disclosures and forms required by Coldwell Banker Residential Brokerage for this type of transaction.
The following identifies the documentation that should be included with every short sale proposal:
- Fax Cover (editable PDF included in this packet)
Please note, each page contained in fax contents should include the borrower´s name and loan number
- Agent Letter to Lien Holder (editable Word document)
- Table of Contents (editable PDF included in this packet)
Recommended order of documentation
- Borrower Authorization (editable PDF included in this packet)
- Borrower Hardship Explanation (normally provided by lender or lender´s website)
- Borrower Financial Statement (normally provided by lender or lender´s website) and Supporting Financial Documentation
- Synopsis of Offer to Purchase (editable PDF included in this packet)
- Executed Purchase Agreement
- Short Sale Addendum (C.A.R. Form SSA)
- Counter Offer(s) (if applicable)
- Buyer Pre-Approval Letter
- Buyer Verification of Funds
- Listing Agreement
- Short Sale Listing Addendum (C.A.R. Form SSL)
- Price Reduction History and Supporting Documentation (if applicable)
- Current one page "Agent" Multiple Listing System (MLS) summary print-out
- Broker Price Opinion (BPO) (if applicable)
- Comparative Market Analysis (CMA) (if applicable)
- Market Activity Report (editable PDF included in this packet)
- Property Brochure
- Copies of Advertisement
- Photographs (if applicable)
- Documentation supporting local market trends or statistics (if applicable)
- Property Inspection Report(s) (if applicable)
- Lien Holder´s Response to Short Sale Proposal (Fax Cover Sheet)