{ short sales part 1- the good, bad and ugly taught by: angela tina [email protected]...
TRANSCRIPT
What will I learn?Part 1-
Basic Info on Short SalesDifference between a short sale and foreclosureTypes of Short SalesWhat programs to sign up for
Part 2-The process of a Short Sale from Listing to ClosingPutting a system in place
Part 3- Navigating through Equator and DTS portal
Part 4- Short Sale HUDs and Approval LettersQuestions and Answers
{Short Sale-
A short sale is when the lender accepts a discount on a mortgage to avoid the property going to foreclosure.
{Foreclosure
The process of taking possession of a mortgaged property as a result of someone's failure to keep up mortgage payments.
Types of Short Sales
• Traditional• 3-6 Months• Agent will set listing price• Financials required• Negotiations will take place• Prom Note, Cash Contribution,
Waiver, Etc.
• Large/Small banks• Programs and packages• Equator• BofA• Wells• Nationstar• ASC• Homeward Residential• Carrington Mortgage
• Traditional- (continued)
Types of Short Sales
• HAFA (Home Affordable Foreclosure Alternative) • Two options- Short Sale or DIL (Deed in
Lieu)• About 30-45 days• Bank may set list price• Includes Waiver of Deficiency• Less negative affect on credit• Relocation incentive
• Some Eligibility Requirements• Hardship• Not purchased new home within 12
months• 1st Mortgage has to be less than
$729,750• Mortgage was obtained before Jan.
1st, 2009• RMA and RASS forms • Short Sale agreement form with DTS
• HAFA (continued)
Types of Short Sales
• Coop or Streamline• 120 marketing period – 30 day approval process• Bank sets list price – pre-approved• Price reductions every 21 days• NO financial documents are required• Waiver of Deficiency• Relocation incentive $5K-30K• DTS (Dignified Transition Solutions) and NDS (National
Default Servicing)• Some Eligibility Requirements
• BAI (Borrower’s Acknowledgement of Interest) Form
• Balance less than $3 million • Needs to be delinquent• No Foreclosure date set
Other reasons to do a short sale vs. foreclosure
Short Sale:-Seller can live in the property during the short sale process.-Plenty of time to make moving arrangements and relocation.-May be able to avoid BK. -May be able to re-purchase within 12-18 months.
Foreclosure:-Seller will have to wait for a sale date to be set then move out quickly.-Bank has right to file a deficiency judgment- 6 months-Credit can be affected between 250-over 300 points. -Typically can’t re-purchase for 7-10 years.
Questions to ask Sellers
1.) Who is your lender?2.) How many liens are on the property? Mechanic? HOA?3.) Are you current? HOA? Sewer? Etc?4.) Is the loan a Fannie or Freddie?5.) What is your current balance?6.) Have you attempted a loan mod? If so, what was the outcome?7.) Is this your primary residence? 8.) What is your hardship?9.) Are you aware of your other options?
Programs
www.equator.comwww.dignifiedtransitionsolutions.com
http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx