Jim Gatos is a
CERTIFIED DISTRESSED PROPERTY EXPERT ® (CDPE); perhaps the most widely recognized and distinguished certification for short sales in the country, with over 30,000 agents thoughout having passed stringent testing for this honor.
- Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
- Assistance from a HUD-approved housing counselor is FREE.
- Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make a mortgage payment to anyone other than your mortgage company without their approval
- NEW! AVOID THE NEWEST SHORT SALE SCAM! "HOUSE FLOPPING!
- With "HAFA" Short Sales, there may be a $3,000 cash incentive to the Seller (The Borrower). With FHA Short Sales, there may be a cash incentive of $750 to $1,000 depending on how fast the sale takes place.
Short Sales are Pre-Foreclosures ...
In a short sale situation, the seller owes more on the mortgage than the home will sell for. Many times the bank would rather lose some money now to avoid losing a larger amount later if they have to foreclose.
Foreclosure should be the last resort, when all other options fail.
Many homeowners can successfully complete a short sale if they:
1. Begin a soon as they are about to go delinquent on the loan
2. Complete the necessary paperwork and ...
3. Hire a competent real estate agent to handle the sale.
Some agents charge an upfront fee to take on the task of a short sale. We do not.
What's the point of a Short Sale?
Primarily, to protect your credit. If you simply pack up, walk away, and abandon both your property AND the obligation to make your payments, you are inviting the foreclosure process to come into your life. While both the short sale and foreclosure will affect your credit, a foreclosure will greatly impact your ability to purchase a home in the future.
Fannie Mae has announced changes that went into effect August 1st, 2008.
You cannot purchase a home under the following guidelines and time frames using Fannie Mae Conventional financing:
*Pre-Foreclosure (short sale of home); 2 years
*Deed in lieu of foreclosure; 4 years
*People who FORECLOSE will have the following Fannie Mae restrictions placed on them:
5 year time period from date of foreclosure completion in which you cannot obtain financing, after which you can finance with a minimum of 10% down and a credit score of 680.
7 year time period from completion to finance a second home or investment property.
7 year time period from completion to take cash out of a refinance on any property regardless of occupancy.
Additionally, some employers will not hire or retain an employee who has foreclosed on a home.
In a "nutshell" , the actions of a short sale may cause your credit to get "bruised" ...
In the actions of a "foreclosure process" your credit will probably get "ruined" ...
The emotional impact to borrower who has a foreclosure cannot be underestimated. Despite the time and potential stress involved in doing a short sale, there is an emotional benefit to doing the “right thing".
Also, where a homeowner has continuing liability for a loan (such as a Home Equity Line of Credit) after foreclosure, the borrower can take some measure of control and mitigate the loss with a short sale.
For More Information, including a complete list of frequently asked questions on the short sale process, options to KEEP your home, Scam Avoidance, and the necessary paperwork involved in beginning the short sale process please download our ...
"Mortgage Emergency First Aid Help Kit" PDF Format File. (Click Here For Download).
REMEMBER: We can "Short Sale" your property
AT NO COMMISSION COST TO YOU!
The "Lender" pays our commission.
Notice: Text based in part from content featured on http://www.nohasslelisting.com. Used with Permission 2009.
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