"Short Sale" May Be Your Best Option

      What is a "Short sale"? (Short Pay-Off)

* Mortgage balance is higher than current market value of the property
* Mortgage Balance had been discounted by the lender
* Written approval give by the lender for the sale of the property
* Zero net proceeds to the property owner

When does it apply?

* When property value is less than mortgage balance
* Lender needs to agree with the discounting of the mortgage 
   and paying of all closing costs including broker commission
* When notice of default is recorded/not required (Late payments are necessary)

How does it work?

* Apply to lender and needs an approval for short sale:
* Call to the Lender
* Send a written request to the Lender
* Submit an application

Things needed by the Lender: 

* Authorization letter
* Needs hardship letter
* Estimated closing statement
* Financial statements (2 years)

What is difference between "short sale" and "foreclosure"?

Short sale: 

credit report stays for 2-3 years
no recourse
1099 issued (possible) or others

Foreclosure: 

credit report stays for 10 years
non voluntary process
possible recourse for loss

What is N.O.D ? (Notice of Default)

* 3 months of delinquent in mortgage payments
* notified the public that payments are late
* possible to reinstate by paying up the delinquent amount
* 90 days after recorded date

Property is still under the individual ownership,
they have the right to sell the property.

What is N.O.T? (Notice of Trustee's Sale/Foreclosure)

* 21 days after 90 days of N.O.D Recorded
* Publish notice of sale
* Notice must be posted on the subject property
* Certified mail must be sent to owner
* 14 days prior to sale record notice of trustee's sale
* 5 days prior to trustee's sale date, Lender has right of refusal to reinstate the status.
* Auction process
* Auction at assigned court (or assigned place)
* Auction to the highest broker
* All junior liens will be drop 


Short Sale May Be Your Best Option if you: