Start Your Research Here: Short Sales Realtor
Short Sales Process Simplified! The Ratliff/Pittenger Group know how difficult it may be to short sale your home. We have simplified the process!
What is Provided for Short Sales:
- Full Time Attorney Negotiator
- Avoid Foreclosure
- Avoid Bankruptcy
- Protect Credit Score from “Foreclosure”
- Be free of financial & emotional burdens
Ratliff /Pittenger Group are professionally trained who have the experience along with an attorney at no charge to you. We will negotiate a settlement with your current lender so that you can sell your own home at current market values, even if you owe more than the property is worth.
Short Sales is a timely process that requires a trained professional who has experience negotiating with a bank to save you from future liens and credit judgments.
Las Vegas Realtor
It is a negotiated settlement in which a short pay occurs, and a lender agrees to accept less than the amount owed to payoff a home loan as an alternative to foreclosure. The lender often agrees because they know if they take the property back through they will often incur and even greater loss. Mortgage Payments Behind?
Five Things Not To Do! Convincing lenders that they will do better if they take less than what is owed now, rather than taking the property back through foreclosure and trying to sell it later.
Keep in mind, not all lenders will accept or discounted payoffs, especially if it would make more financial sense for the lender to foreclose. Example: The Las Vegas homeowner has an unpaid home loan balance of $200,000. The Ratliff Group completes the short sale package with the seller. Once an offer is received, our attorney negotiates with the lender on behalf of the seller at no cost to you.
We get the lender to agree to accept an offer of $115,000 as payment in full. The home is sold to the new buyer and the seller’s credit shows loan paid in full. Many lenders are now reporting as ‘paid as agreed, less than what was owed’. The bottom line however is you did not simply abandon your debt, you settled it. In some cases, a second or even a third mortgage may exist on the property. When this occurs, the process becomes much more complex.
We will need to negotiate between the existing lenders as to the actual payoff amount they are willing to accept in relation to the other lenders . We will negotiate directly with the bank for all real estate agent commissions, which incidentally, are taken out of the sales proceeds and not added on top.
In most cases, the bank will offer the listing agent a smaller than average fee for performing the marketing and negotiation responsibilities associated with representing a seller.
We have foreclosure help!
How Long Will it Take? The Las Vegas Short Sales negotiation process can often be a lengthy one. Remember, it is actually two different elements. The first is the traditional real estate side (listing the home, choosing offers, etc.). The 2nd element is the negotiation with your current lenders. Both of these take place simultaneously. It may take several weeks to months before a lender and home owner can agree on acceptable terms. Many lenders have thick layers of bureaucracy, insurers and investors that we will have to maneuver through in order to get your short sale approved.
We understand how painful your original situation may be, so we make a special point to communicate with our sellers on a regular basis as we go through this grueling process. But My House Is Going to Foreclosure, Will I have Enough Time? Starting a Las Vegas Short Sales will not automatically stop the lender from starting the foreclosure process.
We have successfully convinced lenders to postpone a foreclosure while we negotiate a short sale. While there are no guarantees, we will do everything that we can to get your Las Vegas area home sold before the lender follows through with their foreclosure. It is important to contact us as early as possible to increase the opportunity for a successful outcome, but even if you’re well behind, there may be a chance to help you.
One thing we will do is monitor the situation with your lender closely, so you are not displaced without knowing the timeline. Can I Stay in the House? The key word in Las Vegas Short Sales. The purpose of short sales is to get the property sold. So, you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. It will be easier to sell the house if it is vacant, but if you cannot move out of the home for financial reasons, at least make sure the home is easily accessible to potential home buyers.
How Do I Know This Will Work? Be very cautious of anyone who offers a guarantee. We will not make any promises to you that a short sale will work. Once you missed a payment, the lender is in charge and can proceed with foreclosure if they decide on that option.
However, in light of the current real estate market, lenders are aware that they might have a better chance of selling a home via short sale instead of reclaiming the property in a foreclosure. Will I Get Any Money From the Sale? No. A universal requirement of the lenders in granting a Las Vegas Short Sales is that the borrower will not get any proceeds from the sale of the property. What Happens if This Does Not Work? If you are facing foreclosure, the mortgage lender may be willing to work out a payment arrangement plan with you.
Ultimately, if nothing is worked out, the home will foreclose. What is a Release? A lender may offer to release its security interest against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligations of the note. However, the note is not satisfied. Advantages: This success will allow the property to be sold and thus avoid foreclosure. Disadvantages: The remaining debt on the property (sometimes called a deficiency*) still exists.
You are still liable for the note – in other words – you still owe the money. What is a Satisfaction? A lender may agree to accept less than it is owed as complete and total satisfaction of the note and release its lien against the property. In the eyes of the lender, the debt is now completely settled. Advantages: Your note and obligation to the lender are satisfied for less than you owe. When the property is sold, the debt is paid off completely. Disadvantages: You may have some tax consequences that you should discuss with your tax adviser due to the fact that the lender is making money you owe disappear.
Sometimes our negotiations are successful in obtaining a satisfaction. Sometimes all we can get is a release. Will This Have Any Impact on my Taxes? On December 20th, 2007, President Bush passed “The Mortgage Forgiveness Debt Relief Act of 2007” which allows homeowners a (3) year window to avoid paying taxes on the loss the lender takes.
Before this act took affect, “If the value of your house declined, and your bank or lender forgave a portion of your mortgage, the tax code treated the amount forgiven as income that can be taxed.” According to “The Mortgage Forgiveness Debt Relief Act of 2007” if you sell your home by December 20th, 2010, the loss the lender takes may not be considered taxable income by the IRS.
The IRSoften gets involved with short sales because they are seen as a relief of debt and may be treated as income. Please check with your tax professional and let them know about “The Mortgage Forgiveness Debt Relief Act of 2007.” You will need a tax adviser who is proficient with the ramifications surrounding a short sales, and we encourage all of our clients to see competent tax and legal advice. What type of paperwork do I need? The lender will require a view of the financial package that usually includes:
- (2) Months’ bank statements
- (2) Months’ pay stubs
- (2) Years’ IRS tax returns
- (1) Hardship Letter
- (1) 3rd party authorization form, allowing your agent to contact your lender on your behalf
The leading cause of delay and even denial of our offer to the lender is caused by the seller failing to deliver these items in a timely manner. We provide a complete packet for you along with a checklist outlining the exact requirements your lender will need—less hassle, increased efficiency.
Call The Ratliff Group @ (702) 508-8262 to schedule a free consultation regarding a Las Vegas short sales.