John Morrison Can Help You Avoid Foreclosure…

This real estate market has caused unbearable stress and heartache.
As a Certified Distressed Property Expert and Realtor® I can give you the expertise necessary to save your credit, relieve the uncertainty, and most of all, help your family.
Contact me, John Morrison, and let’s get started towards the path of recovery.

Foreclosure Relief through Short Sale
John Morrison, CDPE, Realtor ®

The Term Short Sale…A “Short Sale” is a relatively new phrase and all too familiar to many homeowners, but this type of sale has been part of the Real Estate market for many, many years. Most Realtors® are not up-to-date with the process and that has caused much confusion in the community with homeowners and even real estate agents. Since I am a “Certified Distressed Property Expert” I thought it would be prudent to explain and dispel misunderstandings.

 What is a Short Sale? 
When a homeowner is authorized to sell for less than what is owed on the mortgage.
When the lender authorizes or accepts the sales price as a payoff.
When the seller avoids foreclosure and many times they can also avoid a judgment.
When the seller avoids a negative report, by the lender, to the credit bureaus.
The seller won’t get any money at closing, but they will avoid the emotional toll a foreclosure can cause. The negotiations include favorable wording for the forgiven debt on the mortgage that can help the recovery of the homeowner.
 Why would a lender agree to lose money? 

Financially, it’s a smaller loss to the bank to accept a short sale than it would be to incur the additional expenses of a foreclosure.
Banks are in the business to lend money not homeownership. The more resources they have tied up in a property the less they have to lend out.
With housing prices dropping so rapidly, even if the bank decides to foreclose they will lose more money when they finally try to sell the property later rather than sooner.

 How does a short sale help me? 

It helps you avoid an emotionally draining foreclosure process.
Avoiding foreclosure will help save your credit. Typically a foreclosure will drop your credit score up to 300 points per loan.
Avoid having a foreclosure on your credit report, which affects your future purchasing power and interest rates.
It could help you avoid a “deficiency judgment” from the bank after the foreclosure as they try to recuperate their loses.

 I have already received my foreclosure notice, is it too late for a short sale?  

The short answer is no, but there are a few variables that can affect the foreclosure timeline.
A qualified Realtor, or better yet, a Certified Distressed Property Expert can help you extend the foreclosure timeline up to 6 months and in many circumstances up to 8 or 9 months.
A sale of a home can be done and approved up to the day of the bank sale or auction of the home.

 I have not missed any mortgage payments; can I still do a short sale? 

Typically the bank will consider a short sale even if you have not missed a payment.  This can be accomplished by showing a compelling reason why the payments have been made, but that they are not sustainable into the near future.

 How do I pay the Realtor® commissions, taxes, and other expenses associated with a home sale? 

The homeowner does not pay any expenses associated with the sale of the home, such as commissions and other closing costs. These expenses are also paid by the bank.
In December 2007, President Bush signed into law “The Mortgage Forgiveness Debt Relief Act” which eliminates the income tax that used to be levied on the forgiven portion of a primary home sale. That tax is still in force for second homes and investment properties.