The Short Sale Process Guide by Marshall Carrasco Reno NV

8/2/2019 The Short Sale Process Guide by Marshall Carrasco Reno NV

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The Short Sale Process Guide

What is a short sale?

Benefits of a short sale

Why choose Marshall Realty?

Short Sale Vs. Foreclosure

Why walking away is not the answer

Loss mitigation tools for delinquent mortgages

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Call : 775-525-1205
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What separates

Marshall Realty

from the

rest

is our resources and

contacts. We have developed relationships with Consumer Credit

Affiliates, The Bank of America Reno help center, Wells Fargo Executive

Offices for Loss Mitigation, Senator Reid's Foreclosure Prevention

Taskforce, among others.

www.renohelp.org

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We have direct contacts with Fannie Mae, Freddie Mac, and HUD.

Our goal has

been to become a total resource for homeowner's in

the

entire Washoe Valley. Our testimonial page

highlights our success.

Let us put our resources and expertise to work for you.

www.renohelp.org

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What is a short sale?

A short sale is when a home is sold for less than the amount owed to

the lender or lenders. The majority of homes in Nevada currently listed or recently sold have

been in the form of a short sale.

www.renohelp.org

Call : 775-525-1205


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Selling your home for less than what is owed is not an easy decision.

However, if you are in a position where you are extremely upside downin your mortgage or facing a foreclosure, a short sale may be an option

to consider.

Benefits of a short sale

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Benefits of a short sale often include

Less damage to your credit than a foreclosure. A short sale is not

reported on your credit history. A foreclosure is reported and stays onyour credit for up to 10 years.

A homeowner who successfully negotiates a short sale may be

considered for a Fannie Mae backed mortgage after only 2 years.

A foreclosure makes the homeowner ineligible for a minimum of 5

years.

Lenders may consider the sale price as paid in full

forgiving the

deficiency.

You can move forward to a brighter financial future in considerablyshorter time.

www.renohelp.org

Call : 775-525-1205


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Why choose Marshall Realty?

By working with Marshall Realty you will benefit from the experience

of over 4 years in successful short sales. Longer than any other agentin the Washoe Valley.

We are familiar with the short sale requirements of each lender.

Your calls will be answered! You will be kept up to date every step ofthe way.

Your property is listed in MLS and available to all interested buyers.

You will not have a sign advertising it as a "Short Sale" or

"Pre-foreclosure".

You never pay a fee. Lenders pay the commission from the proceeds

of the sale.

www.renohelp.org

Call : 775-525-1205


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Short Sale Vs. Foreclosure

www.renohelp.org

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Foreclosure

Issue 1

Successful Short Sale

Future Fannie Mae Loan-

Primary Residence 1

A homeowner who loses a hometo foreclosure is ineligible for a

Fannie Mae-backed mortgage

for a period of 5years.

A homeowner who successfullynegotiates and closes a short sale will

be eligible for a Fannie Mae-

backed

mortgage after only 2 years.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 2


Future Fannie Mae Loan-

Non-Primary2

An investor who allows aproperty to go to foreclosure is

ineligible for a Fannie

Mae-backed investmentmortgage for a period of 7 years.

There is no similar declaration orquestion regarding a short sale.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 3


Credit Score

Score may be loweredanywhere from 250 to more

than 300 points.

Typically will affect a creditscore for over 3 years.

Only late payments on a mortgagewill show, and after sale, mortgage

is normally reported as 'paid as

agreed', 'paid as negotiated', or'settled'.

This can lower the score as little as

50 points if all of the other

payments are being made.

A shore sale's effect can be as brief

as 12 to 18 months.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 4


Credit History

Foreclosure will remain as apublic record permanently, and

on a person's credit history for

10 years or more.

A short sale is not reported on acredit history.

There is no specific reporting item

for 'short sale'. The loan is typically reported 'paid

in full, settled'.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 5


Security Clearance

Foreclosure is the mostchallenging issue against a

security clearance outside a

serious misdemeanor orfelony conviction.

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 clearancewill be revoked and position

will be terminated.

On its own, a short sale does notchallenge most security clearances.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 6


Current Employment

Employers have the right andare actively checking the

credit of all employees who

are in sensitive positions. In many cases, a foreclosure is

reason for immediate

reassignment or termination.

A short sale is not reported on acredit report and therefore not a

challenge to employment.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 7


Future Employment

Many employers are requiringcredit checks on all job

applicants.

A foreclosure is one of themost detrimental credit items

an applicant can have and in

most cases will challenge

employment.

A short sale is not reported on acredit report and is therefore not a

challenge to future employment.

www.renohelp.org

Call : 775-525-1205


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Foreclosure

Issue 8


Deficiency Judgment (Not Applicable in California)

In 100% of foreclosures (exceptin those states where there is

no deficiency), the bank has the

right to pursue a deficiencyjudgment.

In some successful short sales, it ispossible to convince the lender to

give up the right to pursue a

deficiency judgment against thehomeowner.

www.renohelp.org

Call : 775-525-1205

( )


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Foreclosure

Issue 9


Deficiency Judgment (amount)

In a properly managed short sale, thehome is sold at a price that should be

close to market value, and in almost

all cases will be better than an REOsale resulting in a lower deficiency.

In a foreclosure, the home willhave to go through an REO

process it does not sell at

auction. In most cases this will result in

a lower sales price and longer

time to sale in a declining

market.

This will result in a higher

possible deficiency judgment.

www.renohelp.org

Call : 775-525-1205


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Why walking away is not the answer

Recently, there have been reports claiming that a "strategic default"

can be an appropriate and even beneficial reaction to an upside-downmortgage or impending foreclosure.

While this idea has spread rapidly, the truth is that a default

is never

an easy road to choose, and rarely is it ever strategic.

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Call : 775-525-1205


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Why walking away is not the answer (cont.)

In fact, defaulting on your mortgage can be incredibly dangerous and

irresponsible when handling the financial future of you and yourfamily.

Unfortunately, the ramifications of a "strategic default" are rarely-if

ever-explained, leaving many homeowners stranded on an island ofmisinformation.

www.renohelp.org

Call : 775-525-1205


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Why walking away is not the answer (cont.)

If this is your situation, first understand that you are not alone. Millions

of homeowners nationwide are in similar circumstances. The onlydifference between them and you is that you're looking for answers

...contacting Marshall Realty is a great place to start!

The best part is, we never charge our clients a fee, ever!

www.renohelp.org

Call : 775-525-1205


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Allows you to make a regular full payment plus a portion of the delinquencyeach month over a period of months to cure the delinquency.

Conventional Mortgage -

Repayment Plan

VA Mortgage -

Repayment Plan

Allows you to make a regular full payment plus a portion of the delinquency

each month over a period of months to cure the delinquency.

Allows you to make a regular full payment plus a portion of the delinquency

each month over a period of months to cure the delinquency.

FHA Mortgage -

Repayment Plan

Loss mitigation tools for delinquent mortgages

www.renohelp.org

Call : 775-525-1205

C ti l M t L M difi ti


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The delinquency is added to your loan balance in order to bring your loan

current. The interest rate and terms may be modified.


Loan Modification

VA Mortgage - Loan Modification

The delinquency amount is added to your principal balance, which

may result

in fully reinstating your loan. A change in interest rate and/or

the loan term

may also be considered. Late, foreclosure, attorney fees may be waived.

A lender may consider adding the delinquent amount to your principal

balance, which may reinstate your loan. A change in interest rate and/or the

loan term may also be considered.

FHA Mortgage -

Loan Modification

www.renohelp.org

Call : 775-525-1205

C ti l M t F b


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Allows the repayment of part of the delinquency each month along

with your

regular mortgage payment. If you are temporarily unable to meet

your

mortgage payment, suspended or partial payments may be accepted until you

have the ability to resume the payment schedule.


Forbearance

VA Mortgage - Forbearance/Repayment Schedule

Suspended or partial payments for a short period of time followed by

repayment plan, modification, reinstatement, or full pay off.

You must prove

your hardship is temporary and will resume ability to pay mortgage.

Suspended or partial payments for a short period of time followed by

repayment plan, modification, reinstatement, or full pay off.

You must prove

your hardship is temporary and will resume ability to pay mortgage.

FHA Mortgage -

Forbearance

www.renohelp.org

Call : 775-525-1205

Con entional Mort a e Short Sale/Pre fore los re sale


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If you have the ability to make mortgage payments or will have the ability in

the future, but your lender has decided it cannot extend further forbearanceor a repayment plan, VA may buy a loan from the lender and take over theservice.


Short Sale/Pre foreclosure sale

VA Mortgage -

Refunding

Your lender may work with you to obtain a one-time payment from the

FHA-Insurance Fund to reinstate your loan. You must be at least 4 monthsdelinquent and able to make full mortgage payments. You will execute a

promissory note & subordinate mortgage payable to HUD. This note

carries no

interest & is payable at time of home sale or refinance.

Allows the borrower to sell the house and use the proceeds to satisfy the

mortgage debt even if the proceeds are less than the amount owed.

FHA Mortgage -

Partial Claim

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Conventional Mortgage Deed in lieu of foreclosure


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If there are no liens on the property and VA agrees, you will sign legal documents

to make VA the owner of your property. VA will have to pay your lender a claim

for the difference between the value of your home and the mortgage balance.

If a

deed is accepted, you may be released from further liability or asked to repay thegovernment for all or part of the claim VA paid.


Deed-in-lieu of foreclosure

VA Mortgage

Deed-in-lieu of foreclosure

Allows the borrower to sell the house and use the proceeds to satisfy themortgage debt even if the proceeds are less than the amount owed.

If you are not eligible or failed at other Loss Mitigation Tools, including a Short

Sale, you could voluntarily deed or surrender your property to HUD in

exchange for a release from all obligations under the mortgage.

FHA Mortgage -


www.renohelp.org

Call : 775-525-1205

Conventional Mortgage


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Conventional Mortgage

If you are not eligible or failed at other Loss Mitigation Tools, including a Short

Sale, you could voluntarily deed or surrender your property to HUD in

exchange for a release from all obligations under the mortgage. There must be

no liens on the property.

Lender participation is voluntary. These programs are subject to

lender/service

approval. Lenders are not mandated to provide these options. Each lender has

qualifying criteria a borrower must meet before they will consider offering

these Loss Mitigation Tools. Please contact your lender for a workout packet

to apply for delinquency.

FHA Mortgage -


www.renohelp.org

Call : 775-525-1205

f h b l bl b


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Trying to figure out the best solution to your problem can be very

frustrating and overwhelming.

We offer resources completely FREE!

Don't wait until it's too late and more importantly DO NOT PAY

anyone to help you and your family.

Let us help you find the best resource for you.

www.renohelp.org

Call : 775-525-1205

C MARSHALL CARRASCO
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9740 S. McCarran Blvd #103, Reno,

NV 89523

Call Us : 775-525-1205

Contact

MARSHALL CARRASCO

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The Short Sale Process Guide by Marshall Carrasco Reno NV