Columbus Ohio Short Sale Agent Scott Marvin 614-581-9497
This is a MUST READ if you are considering a Short Sale in Columbus Ohio on your House!
For Short Sale Help on Your Home in Central Ohio Call
Scott Marvin with Remax Champions 614-581-9497
This Blog is part of the Columbus Ohio Short Sale Web Page. I am a Columbus Ohio Short Sale Agent and I specialize in keeping distressed home owners out of foreclosure . I have a complete understanding of short sales in Ohio and deliver quick results. To start your short sale in Central Ohio call:
Scott Marvin at 614-581-9497.
Short Sale Defined – A short sale is a situation where a distressed seller must sell their house for less money than the mortgage balance. A short sale is suitable for owners whose financial situation requires that they sell their interest in their home and are unable to qualify for other loss mitigation techniques. A simple definition of a short sale is when the owner must sell their property and the property value has fallen below the loan amount.
Will my bank allow a short sale? – Banks DO NOTwant to do a foreclosure. A foreclosure cost the bank lots of money and data has shown that after a bank gains a property by foreclosure it is in much worse condition than other solutions because of unhappy owners who leave the property a mess or in damaged conditions. A short sale helps the bank preserve losses and helps the home owner maintain their credit. When you are in a distressed situation your bank is more willing to allow a short sale as opposed to foreclosing on your home.
Will my FHA loan be considered for a short sale? – Yes a bank will allow a short sale on an FHA loan. In fact FHA has introduced the Pre-Foreclosure Short Sale Program or PFS that will pay the seller up to $1,000 at the end of the short sale just for participating in the program. This allows you to transition to more affordable housing without the impact of foreclosure.
Can I do a short sale if I’m current on my payments? – No you do not need to be late on your payments to to get short sale approval. There is additional info below on what is required for short sale approval but it is important to know that a short sale can be done simply because the value of the house has fallen below the mortgage value or if the seller has faced hard times. Basically you don’t need to be late just in a hardship situation. A short sale will not be approved if you want to move because the house next door has a loud barking dog or if kids keep running through your yard. A distressed situation is necessary for short sale approval.
Will I have to pay a tax loss if I do a short sale? – In most cases you will not be required to pay taxes on the loss. in 2007 the Mortgage Debt Relief Act was passed that did away with taxes paid on the loss in a short sale. It was common practice for banks to deliver a 1099 tax form to the recent short seller that ordered the seller to pay a tax on the banks loss. These activities have been temporarily halted due to our current economic state. Currently the Mortgage Debt Relief Act has been scheduled to last through 2012. It is important to consult a certified accountant in regard to your personal situation because not all short sales are protected. For example investors selling an investment home through a short sale are not exempt from paying this tax.
How many months will a short sale last? – A well thought out short sale plan will get fast results. Many uneducated real estate agents will fumble through a short sale for 7 months to over a year and at frequent times fail in attempt to ever get a short sale approval. A good short sale real estate professional will rapidly finalize the short sale process and get your home sold in about 60 days from contract date. Short sales are a highly technical business and it takes qualified experts who will finalize the process at a quick pace. Our Columbus Ohio Short Sale Package is designed for quick results.
Call (614) 581-9497 for an informative phone consultation.
We are ready to help.
I am a Columbus Ohio Short Sale Realtor and my goal is to get your home sold and keep you out of foreclosure. I will also discuss other options with you that you might consider before starting a short sale.
Let us now dig a little deeper into what a short sale is and some other possible alternatives.
When a seller must sell and there is not enough equity in the property to pay off the mortgage it is call a short sale. A short sale is needed for home owners whose financial situation or predicament dictates that they sell their home and they are unable to qualify for other loss mitigation options. A short sale is when the value of the property has dropped below the current mortgage balance that needs to be paid off.
Knowing your options before a short sale is important to know. Often times if you are behind on your loan it is "curable" and there is a good possibility that you are able to replace lost wages or cut your expenses. Here are some curable options to consider before a short sale:
Special Forbearance – A special forbearance is a payment agreement between you and your lending bank that comprises of a plan to reinstate your loan after it is in non-payment status. Some options could include repayment over a time period, a reduction of your monthly payment for a limited time, or a plan for you to resume complete monthly payments but holding off on missed installments. In a sense your bank is allowing you to get caught up on your missed payments.
Loan Modification – A loan modification is a permanent alteration to your mortgage. It designates that your loan will be reinstated and sets in place a monetary obligation that you can afford. Loan modifications allow for a number of options such as decreasing your interest rate, or expanding the time available to pay back the mortgage by re-amortization the amount owed. It’s similar to applying for a new loan but be forewarned not all will get approved for a modification.
Combining Options – Your lender can also combine the above to accomplish a preferred conclusion. All mortgage companies are a little different on how they deal with these issues. The idea behind the mitigation process is to keep you from losing your property and help you recover from a adjustment in your economic condition.
So what happens when there is no way of helping you recover and keeping you in your home? If mitigation doesn’t work or can not be considered you are looking at a potential foreclosure. If you are in this situation don’t give up too quick because there are still some options that remain.
Deed-in-Lieu – Deed-in-lieu of foreclosure is when you as the property owner deed your house over to the bank. Basically you hand over your property to your lender. This sounds like an easy out compared to foreclosure but there are some things to consider.
1) A deed-in-lieu effects your credit just like a foreclosure.
2) Mortgage companies don’t want your house. It results in a property on their books and selling properties is not what they are in business to do. Many banks will not accept a deed-in-lieu and suggest you try some other option and will often tell you to do a short sale.
Short Sale – This is what I do in Columbus and Central Ohio. A short sale will eliminate most of your mortgage loan and your bank will charge off the balance with no further obligation from you. Most lenders are willing to accept a short sale instead of going through a lengthy and expensive foreclosure. As previously stated this option is for borrowers whose financial situation demands that they sell their home.
A short sale is a highly technical procedure and requires a huge be filed with your lender. As Columbus Ohio short sales realtors our short sale service makes the process simple for you. We handle the fine details while you simply provide us with the information we need to start the process and then relax knowing your short sale is in good hands. As for your lender they will tell you to find a realtor who does short sales and put your house on the market. We are able to do this for you quickly and put things into motion so that you don’t sit for months with little or no activity.
Below are a few circumstances that will allow for a short sale:
A declining home market – This motive does not take into effect your credit or your financial situation. This is when you are just upside down in your home and owe more than it’s worth. Don’t forget a short sale means you must sell your home. This does not apply if you want to move because of crime in your neighborhood.
The loan is in default or close to it – This is an obvious situation where a bank will do a short sale. There was a time when lenders would not do a short sale if all the payments were current. Mortgage lenders have now realized that in many circumstances it makes sense to do a short sale before the payments are in default.
The Seller has Faced Hard Times – This is a short sale condition where there is a real hardship the home owner is facing. A hardship letter is required in all short sales explaining the reason you are in need of a bank short sale. Sometimes a hardship letter can go over the top. It’s good to know the guidelines for writing a good hardship letter. You should always cite that you seek a short sale so that you won’t have to do a foreclosure. Here are a few common hardships: (Divorce, Illness, Unemployment, Death). Our Columbus Short Sale Package details how to write a good hardship letter.
Assets are something to consider when doing a short sale. Part of the short sale paper work is to fill out a sheet detailing all of your assets. If your lender finds that you have a bunch of money lying around they could deny the short sale because they see that you have funds to get caught up on payments. It is still possible for you to be granted a short sale but they could demand that you to pay back the shortage with a promissory note. This can still become a win win option for homeowners who need to sell their home and has the ability to pay back a reduced amount of their mortgage loan.
Negative Amortization – Some loans that were put in place prior to the housing bubble allowed for negative amortization. This means that each month the amount the borrower pays is not enough to cover the interest on the loan. A lender will consider a short sale in these situations.
Aggressive Secondary Financing – During the housing expansion period some lenders were creating second mortgages for more than the house was worth. When a seller is in this situation it is often a scenario that will get approved for short sale. These types of loans situations get a bit more difficult but can still be considered as a short sale.
The importance of a knowledgeable realtor cannot be overlooked when doing a short sale. Our Central Ohio Short Sale Service and staff is equipped to handle your situation.
AVOID FORECLOSURE…
GET YOUR HOME SOLD…
PRESERVE YOUR CREDIT…
STOP THE BANK FROM CALLING…
MOVE ON WITH LIFE…
Call Today (614) 581-9497
for an informative phone consultation.
We are ready to help.
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Hi Scott
I am a cash buyer seaking some investment properties /short sales in colombus city university area .Properties must be in good condition and in rental demand areas
Could you pls assist .
Thanks
I will call u once you have responded
“A short sale will eliminate most of your mortgage loan and your bank will charge off the balance with no further obligation from you. Most lenders are willing to accept a short sale instead of going through a lengthy and expensive foreclosure. As previously stated this option is for borrowers whose financial situation demands that they sell their home.”
How much is realistic?
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