Nov 2, 2010

Why Choose Our Team?

Why Choose South Shore Home Solutions To Work Your Short Sale?
  • Our team has a decade of experience and have closed HUNDREDS of short sales.
  • Our team has been successfully negotiating and closing short sales since this downturn in the market began. We are not new to the process.
  • Each member of our team holds a Massachusett's Real Estate License, which means we have the experience, have taken the additional education and are held to a higher standard.
  • We have a Real Estate Attorney and Tax Professional that specialize in short sales and foreclosures available to answer your questions.
  • All of the negotiations are handled by our team, not a processor or outside third party.
  • We know the verbiage to put in the contracts to make sure you are fully protected and it has been reviewed by an attorney.
  • We DO NOT charge upfront fees. You do not pay us anything out of pocket. We are only compensated by the bank, WHEN it closes.
  • We have a record of successfully closing our short sales and can prove it.
  • When you call or email, you will always be able to reach a member of our team. If you leave a message it’s because we’re in an appointment and you will hear back the same day.
  • When your property is listed, there won’t be any embarrassing signs advertising it as a “short sale” or “foreclosure”. It will be disclosed to interested buyers, but to your neighbors and everyone else your property will look like a standard real estate transaction.
  • We can provide you with names and phone numbers of current and past clients that you can contact to hear firsthand the service we provide.
  • We have a large pool of buyers looking for properties throughout Massachuetts and may have one that is looking for a home just like yours.
  • Each family has unique circumstances and we will work with you to tailor a plan specific to your needs.

If You Are Considering a Short Sale Contact Us TODAY for Free, NO Obligation Consultation!


Nov 1, 2010

Foreclosure v. Short Sale - 9 Issues Answered

SHORT SALE vs FORECLOSURE
What You Need To Know To Make An Informed Decision



Below is a table to help break down the difference of how a foreclosure and short sale will affect you. Remember Knowledge is Power!

Issue #1 - Credit Score

Foreclosure
A foreclosure will show up as a public record on your credit report, the same as a bankruptcy will show. The impact of a foreclosure can be anywhere from 200 to over 300 points. The foreclosure with typically will affect score for a minimum of 3 years and will report for 7 to 10 years. With a short sale, only late payments on mortgage will show on your credit report. Once the short sale is completed, it will be reported as settled for less than full amount due (or similar verbiage). Depending on the number of other trade lines you have, balances on credit card accounts and if everything else is kept current, the impact can be as little as 50 points. A short sales affect can be a brief as 12 to 18 months.

Successful Short Sale
Credit History Along with the late payments, the foreclosure will remain as a public record your credit history for 7 to 10 years. Only the late payments will be reported on your credit. The short sale will appear the same as a charge off on a credit card and will be reported as settled for less than full amount due (or similar verbiage).

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Issue #2 - Future Home Purchase (Primary Residence - Fannie Mae Loan) (effective May 21, 2008)

Foreclosure
Any individual that loses their property to foreclosure will not be eligible for a Fannie Mae backed mortgage for a period of 5 years. Any individual that successfully completes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Successful Short Sale
Future Home Purchase (Non Primary Residence - Fannie Mae Loan) (effective May 21, 2008) Any investor that loses their property to foreclosure will not be eligible for a Fannie Mae backed mortgage for a period of 7 years. Any investor that successfully completes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

** NOTE – Fannie Mae is currently the largest insurer of residential mortgages with Freddie Mac as the second. Freddie Mac’s guidelines are typically the same as Fannie Mae.
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Issue #3 - Future Loan with any Mortgage Company

Foreclosure
On any future loan application that is completed, the prospective borrower will need to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this may affect future rates after the 5-7 waiting period.

Successful Short Sale
There currently are not any questions related to a short sale on the loan application.

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Issue #4 - Deficiency Rights

Foreclosure
In Massachusetts many loans give the lender the right to pursue the homeowner for a deficiency after the foreclosure has taken place. (each state’s laws are different)*

Successful Short Sale
During the short sale negotiations, in most cases we are able to have the lender agree in writing to release the homeowner from any future deficiency right after the close of escrow.*

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Issue #5  - Amount of the Deficiency Judgment

Foreclosure
In a foreclosure, the final sales price is lower than in a short sale and the fees involved for the bank are higher. If the lender does have deficiency rights, this can result in a higher amount that they will be able to pursue.*

Successful Short Sale
The sales price in a short sale is typically at market value or just bellow. In most cases, the amount of the right off is smaller than in a foreclosure, which would result in a smaller amount that the lender could pursue if a deficiency judgment was available. *
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Issue #6 - Taxes


Foreclosure

At the end of the year, the lender will send out a 1099-A for the amount that they have written off. The 1099-A will show that amount as income in which the home owner may or may not be responsible for paying. Insolvency may be an option to have the amount forgiven. *

Successful Short Sale

At the end of the year, the lender will send out a 1099-C for the amount that they have written off. The 1099-C will show that amount as income in which the home owner may or may not be responsible for paying. The Mortgage Debt Relief Act of 2007 protects many homeowners that have completed a short sale. If the homeowner does not qualify under the Mortgage Debt Relief act, insolvency may be the other option to have the amount forgiven. *
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Issue #7 - Current Employment

Foreclosure
Employers have the right to check the credit of all employees who are in sensitive positions. In some positions, a foreclosure may be grounds for reassignment or termination.

Successful Short SaleA short sale is not a public record and is reported separately on a credit report. The employer will only see late payments and an account that has been settled. This shows that you worked with the lender towards a resolution and typically looks much better to the employer.
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Issue #8 - Future Employment

ForeclosureMost employers require a credit report and background check on all job applicants. A foreclosure may pose as one of the most significant hurdles when seeking employment.

Successful Short SaleA short sale is not a public record and is reported separately on a credit report. The employer will only see late payments and an account that has been settled. This shows that you worked with the lender towards a resolution and typically looks much better to the potential employer.
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Issue #9 - Security Clearances

Foreclosure
Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.

Successful Short Sale
A Short Sale on its own does not challenge most security clearances.

** We are not tax experts or attorneys. The information provided is for informational purposes ONLY. It will serve in a starting point to further investigate how a short sale or foreclosure may affect you. We HIGHLY RECOMMEND that you consult a CPA/tax advisor and/or and attorney regarding your specific situation BEFORE you consider a short sale, deed-in-lieu-of-foreclosure or foreclosure. **


If You Are Considering a Short Sale Contact Us TODAY for Free, NO Obligation Consultation at SSHomeSolutions@Gmail.com