Can I Do A Short Sale If I Don’t Know Who Owns My Loan?

Here at Virginia Short Sale Advice, we get a lot of questions and encounter situations that a borrower can’t make sense of.

We recently had a potential seller tell us that they no longer wished to own their property, and had in fact walked away from the home almost 4 years ago. The lender never foreclosed on the property, but they had not paid the mortgage in years. They knew their loan had been sold multiple times, but didn’t even know who owned their loan currently!

So they asked: Can I short sell my home if I don’t know who owns the note? The answer is: YES. In fact, a short sale is probably the only option in a situation like this.

The first thing your short sale agents will do is run a Title Search with a title company. This will tell us who owns the note.

From there, we need to track down the loan servicer, which we can do by contacting the note-holder. We can then get the appropriate disclosure packet and short sale packet to be able to negotiate with the loan companies.

After we know the servicer and note-holder, the process turns into a usual short sale. Though there is no exact formula for a short sale as every case is different, we would put the property on the market, ratify an offer, negotiate the sale, wait for approval, and schedule/prepare for settlement.

If you don’t know your loan company and need help getting out of your complicated home ownership system, we can help. Call Rob Chevez at 703-587-0995.

 

Senate Approves Short Sale Tax Break

Good News for Homeowners who had a Short Sale in 2014!

From HousingWire.com:

Homeowners who had short sales in 2014 are now one giant step closer to receiving tax relief on any money they received as the result of the sale of their home, after the Senate passed the Mortgage Debt Forgiveness Act by a wide margin on Tuesday.

In a vote late Tuesday, the Senate passed an extension of the Mortgage Debt Forgiveness Act by a vote of 76-16. The extension applies to any short sale conducted in 2014.

The Mortgage Debt Forgiveness Act also passed by a wide margin in the House of Representatives two weeks ago. In the House, the short sale tax break passed by a 378-46 margin.

If Congress had failed to act on the renewal of the tax breaks, any mortgage forgiveness achieved in a short sale would have been counted as income for homeowners whom banks allowed to sell their homes for less than the amount of their mortgage.

RealtyTrac also estimated that the potential taxes on the average short sale to be $22,114, which would have brought the total tax liability to $2.7 billion.

The Mortgage Debt Forgiveness Act now heads to President Obama, who is expected to sign the bill into law.

But the extension only applies to short sales conducted in 2014. Any further extension of the short sale tax break will have to be taken up by the newly elected members of Congress when the Congress begins its 2015 session in January.

South Riding Short Sale Approved

Screen Shot 2014-12-22 at 9.15.22 AM

Another Short Sale Approval from Rob and his team!

This Chantilly/South Riding short sale had a first mortgage with Ocwen and a second with Chase. The Chase Mortgage Lein was completely released and all deficiencies were waved! The bank even agreed to give a $3000 Relocation assistance credit to the homeowner.

This short sale took place as part of the HAFA Home Affordable Foreclosure Alternatives program.

If you are considering a short sale for your home, please let Rob and his team help! Call today at 703- 587-0995.

Short Sale Hardships: What does the bank consider a hardship?

Short Sales happen when the homeowner owes more than the house is currently worth and can no longer afford to make payments. The homeowner wants to sell the home, but the amount the home could sell for won’t cover the principal balance of the mortgage.

There may be plenty of situations where the homeowner owes more than the house is currently worth due to a change in the market, but this alone does not qualify you for a short sale. If you can still afford to make your payments, the best course of action is probably to wait until the market turns around and/or you have enough equity in the property to no longer sell at a loss.

So just having an underwater mortgage doesn’t qualify you for a short sale, but what does? Hardship.

Hardship is some extenuating circumstance that has made making your mortgage payments unfeasible. There are many things that constitute hardship, but ultimately you will need to plead your case to the bank in a hardship letter. The hardship letter is a one to two page document explaining the hardship situation that mentions, includes, and elaborates on any of the following hardships the mortgager is experiencing.

Some examples of hardship include:

  • Death or illness of principal mortgagor
  • Death or illness of mortgagor’s family member
  • Marital difficulties, separation, or divorce
  • Reduction of income
  • Unemployment
  • Excessive obligations
  • Job Relocation
  • Property problem (roof leaks, construction litigation, etc.)
  • Incarceration
  • Inability to rent property
  • Military Service
  • Casualty loss (such as a Hurricane, etc.)
  • Energy-Environmental costs
  • Servicing problems
  • Payment adjustment (ARM Adjusting)
  • Payment dispute
  • Transfer of ownership pending
  • Fraud
  • Abandonment of property (due to condition of property, for instance)\
  • Bankruptcy

If one or more of these hardship situations applies and the mortgage is more than the property can sell for the homeowner is likely a candidate for a short sale.

If you are experiencing a hardship and can no longer afford to pay your underwater mortgage, Rob’s team can help. Call him at 703-587-0995 today to learn if this is an option for you.

 

Just Listed: Centreville Short Sale

Check out this new short sale listing from Rob and his team.

6917 Compton Valley Ct, Centreville, VA, 20121

IMG_2350

This spacious end-unit townhome in South Centreville looks out onto pristine forrest views. The upper level’s 3 bedrooms include vaulted ceilings in the master and a deep soaking tub. The walkout basement has a fully legal bedroom suite with attached full bath, and wet bar with mini fridge. With a little work, this house could be perfect!

This short sale was an investment property that the owner found to be more costly than she could manage. Rob and his team has been working for months to get this property ready for sale, and it’s finally on the market!

Liens are with Chase and Ocwen.

If you need advise about getting your potential short sale on the market, call Rob at 703-587-0995 today.