Do you fear your home will go into Foreclosure in Rockland County?
A Short Sale may be your best option
Do you owe the bank more than you feel your Rockland County property is worth?
Are you behind in your mortgage payments?
Do you have more than 1 mortgage on your home or condo?
Is your lender refusing to accept your payments?
Are you worried foreclosure will ruin your credit for the next 7 years?
If you owe more than the house is worth, I have a Short Sale Program to get you out from under.
Lenders prefer to work with REALTORS. Not Investors or these so called Loss Mitigation companies. The Question is why?
• I have a License with the state.
• I subscribe to a Code of Ethics
• I have E/O Insurance.
• I have a lot to lose
I will help you by negotiating the sale of your property and securing the best deal possible with you lenders, while minimizing the negative effects on your credit. Which we will achieve with expertise, commitment and integrity.
I study the market every day, I know the marketplace. I study lender requirements.
• Every lender will have different criteria for accepting a short sale proposal. In many cases, you won’t know what their requirements are up front. In the case of FHA or VA loans though, you do know what some of those requirements are.
• In addition to the homeowner having a demonstrable hardship and being financially insolvent, in the case of an FHA loan
•
• The net proceeds from the home must be at least 82% of what the home is appraised for as is.
• The FMV must be at least 63% of the total current amount of the loan.
• The second mortgage (if there is one) can only receive $1,000.
• If the home requires repairs, these must be less than 10% of the home’s after repairs value.
•
• If you are working with a VA loan, the net proceeds must be at least 88% of the home’s appraised value.
You are not alone, and since the banks and lenders created this mess, that has put so many people in trouble, in some cases will accept less than the what you owe them.
• What about our example? How would it work if it were an FHA Loan?
• FMV = The home required $10,000 worth of repairs. Comparable homes in good condition were selling for 180,000. Let’s say that our home’s appraised “As Is” value was $170,000.
• The seller owes $200,000.
• It requires $10,000 of repairs.
• Closing costs are estimated to be about $15,000.
• Repaired, the home would be worth $180,000.
• The lender must net at least 82% of FMV. 82% of $170,000 is $139,400. Commissions, costs of sale, taxes, or other liens can come out of the proceeds, but after these costs the lender must net $139,400. In our example, we’re selling the home for $170,000. $170,000 minus $15,000 in closing costs nets the lender $155,000, so we are good. (Incidentally, with a VA loan the net proceeds must be at least 88%. Using our figures, the lender would have to net $149,600. We would still be good.)
• The FMV also had to be at least 63% of the loan amount. In our example, we can divide the FMV ($170,000) by the loan balance ($200,000) to get 85%. This percentage is larger than 63%, so we are good.
• Repairs can only be 10% of the after repaired value. Our after repaired value is $180,000. 10% of $180,000 is $18,000. Our house required $10,000 of repairs, so again, we are good.
IF YOU ARE ALREADY IN PRE-FORECLOSURE, DON”T WASTE TIME-THE BEST THING TO DO IS ACT RIGHT AWAY-CALL ME 845/596-3975 |