Real Estate Tips

MRA Short Sale Solutions

THE MRA ADVANTAGE

 

  •  Full Service Short Sale Facilitation Team…from Consultation to Close!
  • We handle all banks, liens, HOA’s, judgments, IRS, FTB, death & divorce
  • Trustee Sale Postponement
  • We have skilled CPA’s and attorney’s on our team
  • 100’s of Closed Short Sales
  • FREE Consultation – Identify Your Options
  • NEVER a fee to homeowners for our service. Our consultations have no obligation.

Our Track Record

As of January 31, 2012, 288 settled mortgages, over $19 million in deficiency waiversand counting!

Since inception MRA has helped 100’s of homeowners settle with their lenders through successful short sales. MRA’s most popular services are: short sale administration, debt settlement, and obtaining deficiency waivers for borrowers. MRA takes the guess work or uncertainty out of settling with lenders.

Our Short Sale Specialists

MRA was formed in 2008 by veteran Mortgage Consultant, Scott Piper, legendary Real Estate Broker, Janet Cristiano, and top producing short sale Agent, Sophie Aretta out of the growing need for homeowners and real estate professionals to have a partner for navigating short sales.

Short Sale Q & A

We understand that many homeowners are not familiar with what a short sale is or how the process works.  Below are some of the most common answers we are asked and the answers.

1. What do I need to do for a Short-sale?

You will be required to provide the following to show hardship to the bank:

2 most recent years of taxes, 2 most recent months of paystubs, 2 most recent months of bank statements, your most recent mortgage statement, and a written hardship letter explaining why the lender should work with The Churchill Team.  After the initial submission of the loan package to the lender, the only requirement is to set aside your bank statements and paystubs.  About every month or two, the banks will ask to see your most recent pay stubs and bank statements.  We will then communicate this request with you and you can send to us via fax, e-mail, or snail mail.

2. Should I get a loan modification?

If you would prefer to get out from underwater on your house, you may want to choose a short sale instead of a loan modification. In a short sale, the bank will allow you to sell the house for less than you owe. If your home is worth less than your note, it might make more sense to do a short sale instead of continuing to make payments on a losing asset.  Here are some things to consider about a short sale:

  • New loan programs are being introduced that state that if the homeowner stays current on their payments throughout the short sale process and successfully complete the short sale, they are eligible to purchase a home thevery next day!
  • If you fall behind on your payments but complete a successful short sale, then you may be able to buy another house after 2 years.
  • A short sale can relieve you of the burden of a house worth much less than you owe.
  • Both a loan modification and a short sale may negatively affect your credit, but both solutions are better than a foreclosure.
  • Loan modifications currently have a 75% default rate.
  • The majority of loan modifications do not reduce principal.

Also, it is expected that interest rates may begin to rise again.  Once interest rates rise, then loan modifications will become extinct.

3. Can I make money from my Short Sale?

If the bank is taking a discount on the note, then you will not be allowed to profit from the short sale of the house.

4. If I sell my home for less than the balance, will the bank sue me?

When we negotiate with the bank, we negotiate for the satisfaction of the loan, meaning that if they do accept our discounted offer, then they will not sue you for the difference.
5. Will I be taxed on the Short Sale Difference?

Yes.  Anytime the bank writes off more than $600 of debt, they are required to send the IRS this information and will send you a 1099-C form.  However, there is a form that you can fill out at the time that you file your income taxes that will allow you to ask for ‘debt forgiveness’.   We will provide our customers with this form to allow you to obtain debt forgiveness.
6. When do I have to leave my house for a Short Sale?

As soon as you are ready.  We cannot guarantee that we will stall foreclosure, so you are free to move anytime during the short sale process and get on with your life.
7. Can I sell my home myself and negotiate a short sale?

Yes a homeowner may perform a short sale on their own property, however, given the time, knowledge required, and skill set needed for success, most home owners prefer the assistance of a professional.  An outside, experienced, professional real estate company, like The Churchill Team, will have more success negotiating with the bank than the average homeowner.
8. What is the Short Sale process?

The entire short sale process is as follows: 

  • Fill out all paperwork
  • Offer submitted to bank by The Churchill Team
  • The Churchill Team coordinates with the bank on an appraisal
  • The Churchill Team gets results of the Appraisal
  • Both The Churchill Team and the bank negotiate the sales price
  • The Churchill Team receives the payoff letter, stating the sales amount and closing date
  • The Churchill Team communicates with the homeowner the closing date so the homeowner knows when to vacate the property
  • Close on the house at the title company’s office.  The homeowner will need to attend this closing as well as there is more paperwork to fill out.

After the initial submission of the loan package to the lender, the only requirement is to set aside your bank statements and paystubs.  About every month or two, the banks will ask to see your most recent pay stubs and bank statements.  We will then communicate with you and you can send to us via fax, e-mail, or snail mail.

9. Why would the bank do a Short Sale?

Banks are not in the business of owning property nor are they in the business of holding onto non-performing assets.  When an asset is performing, they are allowed to lend 7-9 times its value and collect interest on that amount.  When the asset is not performing, they cannot loan out eight times the amount loaned.  So a bank is motivated to rid itself of a non-performing asset even if it means taking an immediate, short term loss.  Plus, the foreclosure process is expensive to the lenders.  There are legal costs and holding costs in place.  According to the FDIC, losses for lenders on foreclosures range from 20 – 60%, or an average of $50,000 or more per foreclosure!  In fact, many consider a short sale a much more responsible action for the homeowner to take than letting the house go into foreclosure

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