Short Sales

A little-known alternative, once more commonly used in the real estate downturn of the early '90s, is the "short sale," which works like this: A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. The homes mortgage exceeds its value due to the downturn of the market. Our goal is to work out a deal with your lender to sell the home for whatever the market will bear! AND, if the amount of the sale is for less than the amount owed on the mortgage, we negotiate with the lender to discharge the remaining debt.

In cases of short sales (as in foreclosures), a delinquent mortgage will negatively affect your credit rating, but with a short sale, you can avoid having a "debt discharged due to foreclosure" on your credit reports. Mortgage and credit experts say that, after bankruptcy, having a foreclosure on your credit report is the worst result and will reduce your credit score by over 250 points. You could also have to wait up to several years to qualify for a mortgage at a reasonable rate.

Short sales show up on a credit report as a "pre-foreclosure in redemption" status and are far less damaging to you credit scores. After the sale, the mortgage may show up as "discharged," or "settled." People who successfully complete a short sale may also maintain their creditworthiness for future home purchases.

If you are currently behind on your mortgage payment or predict that you will soon be unable to continue making your mortgage payments you're not alone: you do have an option. Let our team fight for you!! Call now for a free consultation!!

Sample of Foreclosure Timeline

Click Here To See Our Short Sale Approval Letters

Click Here To Download Our Short Sale Package

Click Here To See Your Bank's Contact Information

Click Here To Download Bank's Workout Application

Click Here To Download The Mortgage Forgiveness Debt Relief ACT

Home Affordable Foreclosure Alternatives Program (HAFA)

In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010?although some servicers may implement it sooner, if they meet certain requirement--and sunsets on December 31, 2012.

HAFA Provisions

  • Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
  • Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
  • Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
  • Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
  • Uses standard processes, documents, and timeframes/deadlines.
  • Provides the following financial incentives:
    • $3,000 for borrower relocation assistance;
    • $1,500 for servicers to cover administrative and processing costs;
    • Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
  • Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

Download HAFA Short Sale Agreement

Download HAFA Request for Approval of Short Sale

Download HAFA Borrower Frequently Asked Questions

HAFA Program Explained - Watch a VIDEO

Download HAFA Complete Supplemental Directive 09-09 REVISED

We will assist you to identify and implement the best possible solution, helping you to avoid foreclosure. Many distressed homeowners simply give up and give in to the foreclosure process, often without being fully aware of the option available to them. CALL NOW!