A “short sale” is a process where the property is selling for less than what
is owed on the property.

For Example:
Loan Amount:$700,000
Market Value:$550,000

A property is selling for $550,000 and the loan/loans on the property may
total $700,000.     The banks are going to take a $150,000 loss plus closing costs on the property.
The banks want to deal with an agent who is skilled in their language, a team of individuals who specialize in negotiations with banks and the marketing of short sale properties.  That is exactly the expertise that Donald Ross of Keller Williams Elite Realty brings to the table.

Banks can take anywhere from 60-90 days to look at a file.  If for any reason the file is incomplete, the bank can destroy the file.  Ensuring that the paperwork is properly filled out the first time greatly improves the chances of acceptance.
Why shouldn’t I let the house go to foreclosure?
It is quite simple…YOUR CREDIT!  Foreclosure is one of the biggest negative impacts on your credit.   The foreclosure will show up on your credit for many years to come.  We have resources to help repair your credit after the damage of being late for mortgage payments.      It has been shown that foreclosures have a negative impact on property values within your neighborhood.
What are the consequences of doing a short sale?
You won’t have a foreclosure on your credit report.  When a lender or other agency asks whether or not you have had a previous foreclosure, your answer will be “no.” There will be tax consequences.  These are discussed further in our conversation.

If the property does not sell, the property may end up being foreclosed by the lender.  Without an offer the bank will not be able to make a decision on how they can best help you.  Being a former real estate appraiser and a property valuation expert, Don can assist you in pricing the home for sale. Other options may also become available including: loan modification, deed-in-lieu, bankruptcy or bankruptcy and loan modification.
Our consultation is FREE!

Each lender has specific forms that need to be completed.  As a matter of fact, if there are two loans on the property, each form will probably be different.  The banks are usually asking for the following:

• Hardship Letter
• Recent Paystubs (minimum two) for all owners of the property
• Signed Tax Returns for the last two years
• Checking Account Information for the last two months, all pages
• Savings Account Information for the last two months, all pages
• The Lenders’ Financial Worksheet completely filled out
• Copy of Investment Accounts
• Copy of Listing Agreement
• Estimated HUD1 or Net Proceeds Statement
• Additional Liens on the Property
• Copies of Profit and Loss Statements if you are self-employed

Don and his team will guide you through all of the paperwork regardless of which bank and whatever form is required.

Unfortunately, the loss mitigation department does not speak with the foreclosure department.   Keep reading the letters and forward to Don for review.  Critical notices such as the Notice of Default (NOD) and the Trust Deed Sale must be dealt with.  Any phone calls with the bank should be forwarded to Don to eliminate your stress.

The hardship letter is a letter from you to the bank regarding what happened to you to make you late on your payments.  Hardships may include the following:

• Illness
• Loss of Income
• Loss of Job
• Reduction of Income
• Divorce
• Medical Bills
• Relocation

The Hardship Letter is a critical form in the bank evaluating hardship.   Don and his team will assist in reviewing the hardship letter.

Having two loans with one lender is usually better.  Having two loans with two different lenders can be a nightmare.  Having a trained negotiator on your side and them knowing what to do is imperative.

Bankruptcy can delay the sale of your home.  Consult with your legal counsel because they may have specific advice for you.  Give Don the attorneys’ phone number in order for us to consult with each other.

Yes.  The vast majority of banks will issue you a 1099 for the difference.  The difference or shortage may be forgiven under the Mortgage Debt Relief Act.  We recommend you speaking with your accountant, your tax advisor and your business/real estate attorney.

99% of the real estate professionals are not trained in the short sale process.  They are not trained on the short sale process where the property is worth less than the money owed against it.  Conversing with loss mitigation, the short sale department is tricky.  Whatever you say can be held against you.
Don and his staff are trained on how to deal with the negotiators.

Specialization is the key.  Why would you go to your regular doctor if you need a brain surgeon?  Don is a certified pre-foreclosure specialist whom has a team of trained personnel trained to handle all aspects of short sales.  Since the bank is losing money on their investment, they will decide what our team gets paid.  Our most important concern is doing what is right for our clients.  If you have questions, we will have the answer.  If we don’t, we will find someone who does.

NO!   If the bank wanted the property they would foreclose.  Banks are not property owners.  They will have to pay for the insurance on the property, the cost to rehabilitate the property, foreclosure proceedings and closing costs.  The bank will look at the bottom, determine if the seller truly has hardship and then analyze whether it is in their best interest to do a short sale or modification.