Have an Account? Register for a homefinder account. With an account you can search the Multiple Listing Service for property. Save the search and have the homes sent to your e-mail.
|
Overland Park KS –  Should you walk away or should you stay? Here is how to determine whether or not you should walk away from your home. Because of the decline in the nationwide housing market, I doubt that your home is worth what you paid for it.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
First, determine the current market value of your home. Talk to a realtor. They will give you a market analysis, based on what other homes similar to yours are selling for.
For example, we recently helped a home seller who had paid around $700,000 for his home. We thought the home was worth about $400,000. His mortgage payment was a little over $4500 a month.
When you add in the property taxes and insurance his total monthly payment was around $5,300 a month. Similar homes were renting for around $2,500 a month.
If you compared rental payments, he was way upside down on his home. We ran the numbers and saw that he was on track to repay $1,697,000 over the life of loan.
Next, let’s look at how much he would save by short selling and renting a similar house for two years. First, he would be saving $2500 a month by renting a similar home. In addition when he bought a similar home for $400,000 then he would repay around $934,000 over 30 years.
$1,697,000 minus $934,000 is $763,000. That means he would save $763,000 in mortgage payments over the next 30 years. What can you do with $763,000?
Would it make retirement easier? You probably could completely pay for 3-4 kid’s college tuition. Most people could put 6-7 kids thru college with that kind of money.
Or, he could retire a few years early. Enjoy a little bit more of the “Golden Years.”
It appears that he would be doing better for himself and his family by short selling the house. The bank was probably bailed out by the American Taxpayers. If he pays taxes, then he helped out with that bailout.
This is why I recommend that you look at all the numbers when you are trying to determine whether or not you should walk away. How much money will you be repaying over the life of the loan? Just Google “amortization calculator” and run the numbers.
Add up how much money you would be paying back with your current home and compare it to how much you would pay if you short sold, rented for two years, and bought another home after that.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at RE/MAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realty. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of RE/MAX Best Associates. This information on Overland Park Short Sales: Walk Away or Stay? is provided as a courtesy to our viewers to help them make informed decisions.
Overland Park KS – “I can’t process this short sale without the TPS form filled out with the seller’s full name”, the short sale negotiator told him. “But, based on my calculations, this short sale will help your company avoid a $17,000 loss”, he replied.
“So, you’re telling me that unless I can get you the TPG form filled out, then you will reject this short sale and subject your company to a potential $17,000 loss,?”
“Yes, you are right”, she replied. “But $17,000 is a lot of money. Don’t you agree?”, he replied back. “I don’t care about the money. The TPG form is company procedure”, she said.
The story above illustrates just how crazy short sale lender bureaucracy is today. The guy who told me that story couldn’t remember the form name.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
He said it was about as dumb as the infamous “TPS Reports” from the movie Office Space. The reason is because many banks turn down short sales only to lose more money thru a foreclosure.
As an example, the house in question sold for $117,000 about 12 months ago. Today, comparable homes are selling for $90,000 (not a typo.)
In that 12 months, the home’s value dropped by $27,000. The bank’s foreclosure process was on track to foreclose on the house in 6 months. It would have taken another 3-6 months to sell the foreclosed house.
That means the value would have dropped by a minimum of three quarters of $27,000. That mean the lender would have lost $20,000 because they turned down the short sale offer.
Here is what was wrong with the TPS form. One form had “John Arthur” entered for the seller’s name. The short sale negotiator was going to reject the short sale unless his name was changed to “John W. Arthur II.”
Everyone else was ok with the existing paperwork. The title company, the buyer’s mortgage company, and everyone else.
The bottom line: A large, nationally know lender was willing to risk losing $20,000 because they needed a document to be perfect. Nobody ever asked the stockholders for their opinion.
That’s what short sale bureaucracy does. It hurts the economy. It is also why you need an experienced, competent short sale agent. You need someone who knows how to work with the bureaucracy and get things done.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at RE/MAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realty Short Sale Realtor. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of RE/MAX Best Associates. This information on Overland Park Short Sales: Will your short sale be killed by bureaucracy is provided as a courtesy to our viewers to help them make informed decisions.
Overland Park KS –  I read an interesting book that was written by a former real estate agent. The author, Robert Ringer, talked about persistence and how it helps you be successful. He told a story about phoning a call center.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
The first person he talked to told him that he couldn’t buy something in bulk for a certain price. Rather than argue with her, he instead hung up and called back in.
The next person he talked to agreed to sell him the product in bulk for the price he wanted. He got what he wanted a lot faster and easier than if he had spent time arguing with the first person.
He gave another example of trying to change his account info with a phone company. The first person tells him he needs to print and sign a form. Then, he must have it notarized and mailed to the company.
The company will then change the account information. Does he willingly go along with her? No.
Instead, he hung up the phone, called in again, and talked to another rep. In just a few minutes that rep had changed the information in the computer system. Goal accomplished.
So what does this have to do with short sales?
We will use this same strategy when we negotiate your short sale. If the first person won’t give us what we want, then we will ask someone else. Now, this can’t be use in all stages of the short sale.
But, it can be used to increase our odds of success. Remember, our goal is to help you wipe out the upside down debt, get rid of any tax liability, and keep your credit intact. We might even be able to get you a $3,000 short sale incentive from your lender.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at RE/MAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City MO short sales. Kansas City Short Sale Realty Short Sale Realtor. Overland Park Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of RE/MAX Best Associates. This information on Kansas City Short Sales: Deed-In-Lieu of Foreclosure or Short Sale is provided as a courtesy to our viewers to help them make informed decisions.
 Overland Park KS – One of the short sale documents that your lender will require is a Financial Statement. When you fill it out, don’t make the mistake of not including all your monthly expenses and total debt owed.
Many sellers don’t include all of their debt or monthly expenses. I recommend you include the debt and the monthly payment even when you are behind on payments. In addition, you should include anything that you pay for each month.
Education, groceries, and credit cards that that are behind six months should be included. This may not seem important. But it can have big, long term consequences. Let me explain.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
If you make this mistake, you could be liable for income taxes on the loss. You can be liable for income taxes when short selling a house that you don’t live in. However, some experts say income taxes can be avoided. How?
If you can show that you were “financially insolvent.” I have seen this definition of “financially insolvent” thrown around a lot. The definition is when all of your assets are worth less than your total debt.
According to the experts you are technically insolvent if your house, car, personal possessions, etc are worth 300k, but you owe 380k. Remember, I am not giving you these examples as tax advice.
(Talk to a qualified tax professional before making any financial decisions.) I am simply telling you the reason these mistakes should be avoided.
Here is the other reason you want to avoid this mistake. Many short sale guidelines state that a short sale can only be approved when you cannot afford a property.
This is the case for VA Short Sales, FHA Short Sales, Fannie Mae Short Sales, and Freddie Mac Short Sales. In addition, Fannie Mae & Freddie Mac recently changed their deficiency guidelines.
They state that they will completely release the debt if you are short selling and have a legitimate hardship. However, if you do not have a legitimate hardship, then they may pursue you for the loss.
A legitimate hardship is when you cannot afford your house payment. Not adding 1-2 bills to your financials could tip the scale where you could afford the house. In that case, Fannie or Freddie might pursue you for the loss.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realtor. Overland Park KS Foreclosures Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on avoid this mistake on your financial statement is provided as a courtesy to our viewers to help them make informed decisions.
 Kansas City Short sales Overland Park KS – People often ask me, “How does a short sale work for the seller?” A short sale is usually very beneficial for the seller. Here is how the process goes.
First, the seller will put the home up for sale with an agent. It will usually take 1-3 months for the house to sell. During that time buyers will come with their agents to look at the house.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Once a buyer makes an offer and you decide to accept it, then we will begin negotiations with your lender. The good news is that you won’t have people looking at the home anymore.
We will gather all of your financial paperwork. That will be submitted to the lender along with a copy of the sales contract and an estimated closing statement. The closing statement lays out all the sales cost and what the lender should expect to net from the sale.
The lender will review everything and give us an answer. They will either approve the short sale offer, or give a counter. If they accept it, then you will have between thirty and forty-five days to move out.
If they don’t like the offer or terms, they will issue a counter offer. Here are some commons counter offers that we have seen. “We want the buyer to pay $123,000.” Or, they might ask, “Before we can review the file, we need copies of the seller’s bank statements for the last 2 months.”
After we provide them with the necessary documentation they will usually issue an approval. Sometimes they gather all the stuff they think they need and then turn around and submit that to the actual owner of the loan.
In an estimated 80% of cases the loan is not owned by the bank or lender we negotiate with. So the short sale will be approved or denied based on their criteria.
After the final approval, the buyer will do their standard stuff. They will often order a home inspection, survey, and appraisal. After that is complete the closing will be scheduled.
The closing will be handled by either a title company or a real estate attorney. You will move out before the closing and bring your keys to the closing. Depending upon your situation it might be a sad day, or a happy day.
A short sale means many different things to people. Some people are unhappy that they are moving out of what was their dream home. If that is the case, we will be there to help. You can cry on our shoulder. Because we have worked with other people in your situation, then we will understand how you feel
Others are happy that they were able to get rid of an unwanted house without owing any money. If that is the case, then great. We will be happy because we helped you get rid of the burden of debt.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realty. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on How does a short sale work for the seller is provided as a courtesy to our viewers to help them make informed decisions.
 Kansas City MO – Many people avoid buying a Overland Park Short Sale. This is because they have heard a horror story about short sale purchases.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Tip #1: Make sure an experienced short sale agent is representing you. Consult with an agent that has short sale experience before you make an offer on a short sale listing.
An experienced agent will tell you if your offer is realistic. They will guide you away from listings that have a low chance of being approved.
They know the good short sale agents who can get your offer approved by the lender and the extra contract clauses that have to be added.
Tip #2: Ask for updates every week or two. Regular updates will let you know that everything is progressing on schedule.
It will take between 30 and 60 days for the short sale lender to give an answer to the offer. So be prepared to wait it out for that long.
Tip #3: Always do a visual inspection before you start the 30-60 day wait. Some short sale properties are not in good condition. Before you start the waiting process walk around the house and do your own visual inspection.
You can spot a lot of potential issues before you waste 30-60 days waiting for an answer on the short sale. Look for water leaks, foundation cracks, and aged roofs, etc.
Tip #4: Always reserve the right to an inspection. Don’t give up the right to get the home inspected when you make the offer. You don’t want to be locked in with no inspection clause after the short sale is approved.
Tip #5: If you are buying a short sale or bank owned property, then pay the extra money for a top notch inspector. Some (not all) of these properties have problems that don’t stand out.
You don’t want to be stuck with a lemon after you purchase. The best, most qualified home inspectors usually have a waiting list. They charge top dollar for their services.
They might charge 20-50% more than other inspectors. But, it is worth it. They might save you on a $5,000 or $20,000 repair that another inspector would miss.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realty. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on tips when buying a Overland Park Short Sale is provided as a courtesy to our viewers to help them make informed decisions.
 Overland Park KS – A hardship letter is one of the most important items in a short sale. This is your opportunity to explain why your lender should approve your short sale and let you walk away from the debt. In clear terms, you need to layout exactly why you can no longer afford to keep the property.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Under no circumstance should you say any of the following. “I don’t want the house anymore.” “It doesn’t make sense to keep the house because it isn’t worth what I owe on the mortgage.” Or, “I can afford the house, but I think paying the mortgage is a bad investment.” Absolutely do not say anything like that. Instead, say the following.
“Our income went down and we can no longer afford the house.” “I lost my job and we are running out of money fast.” Or, “I would love to keep the house, but in our financial state forbids that.” Your hardship letter is your best shot at selling the short sale negotiator on approving the short sale and releasing you from the debt. What you say matters.
Here is a sample layout for a hardship letter.
Your name and the address of the property.
Your mortgage company info and your loan number.
State that you are having problems and would like to sell your property as a short sale.
State the reasons you are having financial problems.
Explain your situation in a little more detail.
Finalize the request.
Put your name down.
Sign and date above your name.
Here are some of the acceptable hardships you can put in your hardship letter.
Loss of job.
Loss of income.
Business Failure.
Unexpected medical bills.
Military Duty.
Death in the family.
Imprisonment.
Illness of breadwinner.
Forced relocation for work.
Please keep in mind that a real person will read your hardship letter on the other end. That person is probably super busy. It is helpful to bold certain items and keep the letter under 2 pages long.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realtor. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on how to write a Hardship Letter is provided as a courtesy to our viewers to help them make informed decisions.
 Kansas City MO – An Overland Park real estate Short Sale is an option to sell your home when you owe more than it’s worth. You may have bought your home only to see it drop in value. If you want to sell and don’t have enough money to cover the loss, then you need to consider a short sale.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
This is where your lender agrees to take a loss. Obviously, they don’t like to do that. If you have money in savings, they might ask for it. However, federal law forbids them from asking for money in your 401k or IRA.
Here is why lenders will accept a loss thru a short sale. They know that people often have financial problems and the home will have to be foreclosed upon. They have run the numbers and calculated that short sales cut their losses. This is because the home is sold faster. Most foreclosures take 12-18 months, if not longer. It is better to sell the home today versus selling it 12-24 months down the road.
The lenders use several methods to see if a short sale will be better for them financially. They will ask for you to write a letter describing your situation and explaining the hardship that is causing you to sell. This is called a hardship letter. They also also ask for your financial information.
This paperwork is submitted along with a sales contact, HUD-1 settlement statement, and any other documentation needed. The lender will order an appraisal or opinion of value. After they analyze all the information they will approve or deny the short sale request.
In some situations they will ask for more documentation. After the short sale is approved the closing proceeds. The buyer gets an inspection, appraisal, and survey. The final closing settlement statement is submitted to the lender for approval. After the lender approves the sale closes. You are free to move on with your life without a huge debt and without a foreclosure on your record.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City real estate Short Sale Realtor Short Sale Realty. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on how a Kansas City Short Sale works is provided as a courtesy to our viewers to help them make informed decisions.
Kansas City Short sales Kansas City MO – There are many reasons to use a short sale to stop foreclosure. If you want to keep your home, then you need to attempt a loan modification. If you do not want to keep your home, then you need to consider your options.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
There are 3 options if you do not want to keep your home. Option #1: Do nothing and the lender forecloses on the house. Option #2: Deed in Lieu of Foreclosure. I don’t recommend this as detailed in yesterday’s column on Deed in Lieu. Option #3 is a short sale.
Here are the benefits a short sale offers over a Foreclosure or Deed in Lieu.
Will you be able to buy another home in the future?
Current Fannie Mae Guidelines allow you to purchase another house 2 years after a short sale. Fannie Mae is the most common loan people get and most lenders have policies similar to them. After a foreclosure, the current Fannie Mae Guidelines require you to wait 5-7 years before getting a new loan.
How will a short sale or foreclosure affect my ability to get a loan in the future?
If you short sale, then you can state “No” because you short sold your home. You only have to say yes if the bank completes the foreclosure. After a foreclosure any future application will require you to answer the question, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” you’ll have to answer that question yes.
How will my Credit Score be impacted?
After a short sale, the mortgage is normally reported as “paid in full, settled.” So the biggest impact will be from late payments. This lowers your score as little as 50 points if all other payments are being made. Most lenders review late payments in the last 12-18 months. After that, they become less important.
After a foreclosure your score is typically lowered by 250 to 300 points, or even more. This often stays on your credit score for over 3 years.
Will I owe my lender any money for the shortfall?
Few lenders ask for a promissory note on a short sale. In the rare case they do ask for one, then they usually request the borrower repay them a percentage of their loss. As an example, a property we short sold, the bank lost over $120,000. They settled with the seller for $25,000 to be repaid over 15 years with zero interest. The seller’s monthly payment was only $138.89.
Many lenders take 12-18 months to foreclose upon a property and resell it. This dramatically increases the loss and makes any deficiency judgment potentially bigger.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realty. Overland Park KS Short Sales. Overland Park Realty.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information on how to use a short sale to stop foreclosure in Overland Park is provided as a courtesy to our viewers to help them make informed decisions.
Kansas City MO – Fannie Mae stands for Federal National Mortgage Association. Fannie Mae was placed into conservatorship by the US government in June, 2008.
Fannie Mae short sales are much simpler than other short sales. Around half of all US mortgages are owned by Fannie Mae or Freddie Mac. That means the company you have been mailing your mortgage payment to does not actually own your loans. You might mail your check to Bank of America, Wells Fargo, or Chase. But, they act as a “Servicer” on behalf of Fannie Mae.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Fortunately for most homeowners, Fannie Mae does not pursue deficiencies or promissory notes. The only exceptions are if it were a strategic default or the loan has Mortgage Insurance. Even in these cases, you can usually avoid a deficiency judgment. A Fannie Mae short sale has to be approved by Fannie Mae.
That means you will send all your paperwork to your lender. They will process your paperwork and then send the final paperwork to Fannie Mae for final approval. In some cases, the lender will be “delegated.” This means that Fannie Mae has “delegated” the authority to make decisions on the short sale to the lender.
Click here to research if your loan is owned by Fannie Mae.
Click here to research if your loan is owned by Freddie Mac.
Fannie Mae is fairly reasonable with their short sale process. Unlike certain lenders, they don’t demand more than is reasonable. They adjust their policies from state to state to make the process easier. In addition, they have a great policy for negotiating with second mortgages.
Short sales with two mortgages can be very tough. The first and second mortgages fight over the available funds. This usually throws a wrench in the short sale negotiations. The second will get zero in a foreclosure. But, the first is willing to give the second something because a foreclosure costs them money.
However, the second wants more than the first is willing to give. Fannie Mae has gotten rid of all the issues with a straight forward second mortgage policy. They pay $3,000 to the second mortgage, regardless of what they are owed. This streamlines the process and makes everyone happy.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at kcflash@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 913-339-0630.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Overland Park Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Ken Flaspohler.
Ken is a Real Estate Broker at REMAX Best Associates.
Phone: 913-339-0630. kcflash@gmail.com.
View My homes for sale at www.kansascityhomes4u.com.
Ken Flaspohler specializes in loan modification assistance and short sales in Kansas City Missouri. Kansas City Loan Modification Help, Kansas City short sales. Kansas City Short Sale Realtor Short Sale Realtor. Overland Park KS Short Sales. Overland Park Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Flaspohler’s personal views and do not reflect the views of REMAX Best Associates. This information is provided as a courtesy to our viewers to help them make informed decisions.
|
RE/MAX Best Associates Hi, my name is Ken Flaspohler, broker at RE/MAX Best Associates. Welcome to my blog. I want to share my experiences and knowledge so you can better understand the real estate world. After doing this for over 20 years I have come to realize I will never fully understand or know the nuances of buying and selling real estate. If I can share some of those with you I have succeeded in making my industry better.
If I can help with a particular question or issue, make a post...
I look forward to helping with your buying and selling needs. Referrals are an important part of my business.
|
