Another Virginia Short Sale Approved!

Excited for my client! She had owned this property for many years as a rental and the value had just not come back. Every month she bleed money on this rental and it caused her extreme hardship. We were able to get a full deficiency release ( which means they won’t come after her for the 100K difference between the loan amount and the sales new sales price)!

703-651-6735 Office.

Green Tree Short Sale Approved – Short Sale Case Study

Short Sale Case Study: 12338 Knightsbridge Dr, Woodbridge, VA 22192

Find out how this Woodbridge, VA homeowner was able to avoid foreclosure on his home by getting his lender to accept a short sale.

Property Location: 12338 Knightsbridge Dr, Woodbridge, VA 22192

1st Lender: Ocwen Loan Servicing, LLC

2nd Lender: Green Tree Mortgage (Ditech Financing,LLC).

Hardship: The man had been affected by a series of bad events which were unprecedented. First, the devaluation of homes in Knightsbridge county. Seven months after he bought his house, he was underwater. He also made a mistake by not reading the terms of the loan and opted for a wrong choice of fixed mortgage.

This got complicated in mid 2009 when he got hit by an uninsured motorist. He had to have plastic surgery on his face and nose. It was so serious that it left him with a severe head and neck trauma and his foot was torn completely off the ankle. He was taken to the hospital but couldn’t complete surgery due to financial reasons, as he had no medical insurance.

To download a copy of the 1st short sale approval letter, click here

In 2011, his daughter also had an accident in which her ACL was torn. They had to promptly come up with $15,000 since there was no medical insurance. Being a self-employed man, his business started dwindling during this time coupled with mortgage payments draining his savings and IRA.

He and his family had no other option but to do a short sale, as foreclosure was already looming.

Result
  1. First lender

Purchase price of the property: $340,000.00

Discounted payoff: $269,910.50

Deficiency: $70,090

A total of $70,090 waived

  1. Second lender

Total second mortgage debt: $75,436.95

Settlement accepted: $5,868.00

Debt forgiveness: $69,568.00

Summary: After two serious accidents in his family, this homeowner’s business went down and he found himself unable to pay his mortgage. He had significant debt on two mortgages. We worked together and he was able to negotiate a successful short sale with Ocwen. Getting up to $140,000 waived by his two lenders, the seller was also able to receive an Occupant Relocation Assistance amount of $10,000.00 from Ocwen.

We are a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. In the last 6 years, we have negotiated over 65 short sale approvals, and discounted $19 million of mortgage debt for distressed homeowners. In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. If you are a homeowner who is struggling to make ends meet, it is important to find out about what options are available to you, For a free, no-obligation consultation, tell us about your situation or call us directly at (703) 212-3344.

Nationstar Short Sale Approved – Short Sale Case Study

Short Sale Case Study: 21764 Tottenham Hale Ct, Sterling, VA 20166

Find out how this Sterling, VA homeowner was able to avoid foreclosure on his home by getting his lender to accept a short sale.

Property Location: 21764 Tottenham Hale Ct, Sterling, VA 20166

1st Lender: Nationstar Mortgage

2nd Lender: Fulton Bank

Hardship: This homeowner got laid off in June 2015 after years of working as an IT professional. He wasn’t able to find a new job and his wife was not working. So, paying up his mortgage became difficult as even meeting daily needs was becoming tough.

To download a copy of the 1st short sale approval letter, click here

His savings had been exhausted and there was no other way to avoid foreclosure but to pursue a short sale.

Result
  1. First Lender

Approved selling price: $380,000.00

Payoff: $329,778.00

Deficiency: $50,222.00

A total of $50,222 waived

  1. Second lender received $12,000.00

SUMMARY: After the homeowner got laid off, he found it hard to secure a new job and since his wife was also not working, he couldn’t make his mortgage payments. We worked together and he was able to negotiate a successful short sale with his two lenders.

We are a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. In the last 6 years, we have negotiated over 65 short sale approvals, and discounted $19 million of mortgage debt for distressed homeowners. In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. If you are a homeowner who is struggling to make ends meet, it is important to find out about what options are available to you, For a free, no-obligation consultation, tell us about your situation or call us directly at (703) 212-3344.

11 Reasons Why Most Short Sales Aren’t Approved

A short sale in real estate is when a property is sold at a price less than the amount owned by the homeowner to the mortgage company, and the mortgage lenders accept the short payoff. A mortgage lender will take the ‘short’ payment if the borrower can continue making monthly payments on the loan if they do not have money to pay the loan all at once.

So why do homeowners opt for short sales?

  • To avoid foreclosure – If a lender cannot make their mortgage payments, they are likely going to face foreclosure, and they can undergo the proceedings of a foreclosure. They opt to sell the property at a lower price than go through foreclosure.
  • They do not have money to continue paying the mortgage – If a homeowner does opt to have money to pay their mortgage, they choose to short sales the property and use the money to pay their loan debt. If the money is not enough, they can continue making monthly payments until their debt is cleared.
  • The homeowner may be moving to a new location – Sometimes a homeowner may want to move, but they cannot find a buyer to buy the price at its original buying price or higher. This may lead them to opt for a short sale. Since they will be selling at a lower price, it will not be difficult to find a new buyer.

11 Reasons Why Most Short Sales Aren’t Approved

1. The homeowner does not have a valid reason for not paying the mortgage
For a mortgage lender to accept a short sale, the seller must have a valid reason for selling. Usually, it could be they cannot afford the mortgage payment, or they are moving and want to sell the home. If the seller does not have this kind of reasons, it will be difficult to convince a mortgage lender to a short sale, and undergo the losses.

2. The mortgage lender prefers foreclosure
Sometimes the prices of the short sale may be too low than the original price, making the lenders opt to foreclose. If the lender determines that the payout from a private mortgage lender will be a much larger loss, they prefer foreclosure. This way your short sale will not be approved.

3. Property title is unclear
The property title must clearly state that you are the homeowner. If the details are unclear, the mortgage lender will not approve your short sale. You could be running a con game. You as the seller must have all the necessary documents, title inclusive that prove you are the homeowner, the buyer or someone left that particular property in your name, making it yours.

4. The homeowner has filed for bankruptcy
Bankruptcy declaration is grounds for disapproval. A lender will not approve the short sale if you are declared bankrupt. This is because in the case that you cannot pay the full amount at once you are expected to make monthly payments. If you are bankrupt, you cannot make these payments. Therefore, your short sale request will be denied. The lender must be certain that you can pay your loan balance.

5. The mortgage lender may have approved the short sale by the homeowner refused to make payment to reduce loss the bank will incur
By approving a short sale the lender will be making a big loss since the property is being sold at a lower price. However, the homeowner and the bank could agree that the homeowner will make payments to cover the loss the lender will suffer after the short sale. If the homeowner is not willing to make these payments, their short sale will not be approved.

6. Unreasonable second lenders
It is important for the bank to meet with the second lender who in this case is the buyer. All property details will be smoother if the two met and discussed terms, including the prices. Sometimes the second lender is too difficult and refuses to meet the first lender. The first lender has no choice but to deny the request for short sale.

7. Tax liens, UCC filings and judgments
The homeowner must pay all liens before they can short sale because any liens under the homes name or the seller’s name will follow them even after foreclosure or short sale. The bank/lender will deny short sale until these liens have been paid.

8. The home is not in good condition
If the home is damaged and requires too many repairs, the mortgage lenders will not approve a short sale. If you are planning to sell it’s important to ensure you repair all damages and leave the home in good shape for the next homeowner.

9. Short sale price is too low
Sometimes the short sale price is too low and too big of a loss that the lender refuses to short sale. If they think they can make more money and avoid the losses by going through the foreclosure process, the lender will often opt for the latter.

10. The bank/lender sold the loan
Sellers fail to understand that at times the bank/lender that gave them the loan could have sold it to another bank/lender. This means that the bank may be servicing the loan and sending payments but not own it. If the bank sold the loan it has no authority over the loan, therefore, it could not approve the short sale.

11. The seller does not qualify
The bank requires a hardship letter from the seller to state why he/she cannot afford to continue paying their debt. If the seller refuses to work out a plan to pay the bank, then the bank will deny the short sale.

Conclusion
A short sale could succeed if the homeowner meets the necessary conditions from the bank. However if not they will be due for foreclosure unless they van manage to make the payments required by the lender. If you intend on short selling, ensure you go through each small detailed that you will require for your request to succeed. Pay your taxes, repair all damages and look for a second buyer that will not be impossible to work worth. Also, ensure the offer made by the second buyer is reasonable enough for the lenders to accept.

Alexandria Short Sale Approved

Wells Fargo Relocation Short Sale Approved!

This short sale approval has been a long time coming! After months of hard work, the bank rejected our initial offer and countered $40,000 above contract price! While those buyers weren’t able to continue, we found another buyer who was able to come in at bank asking price. Now, we finally have the approval!

Remember: when doing a short sale, patience and a willingness to negotiate with the bank is MUST. Agents who aren’t experienced in short sales don’t always understand this. If you are looking for an experienced agent to handle your short sale, our team can help! Call today at 703-212-3344 for a free phone consultation today!

 

Military Deployment + Hardship = Approved Short Sale

We just got the 1st approved on this short sale and we expect the 2nd to be approved any day!

Hardship: Military Deployment

Financial: Stayed current through the entire process to minimize impact on credit.

Challenge: The banks typically put you at the bottom of the pile when a client is current on the mortgage but with persistent effort you can get them to listen.

If you are in the military and you are experiencing financial hardship give me a call to discuss your options!

BOA Short Sale Approved – Over 400K Deficiency Waived!

400K in deficiency debt waived and 30K in seller relocation approved!
400K in deficiency debt waived and 30K in seller relocation approved!

There was a 1st and 2nd on on this beautiful home in Fairfax County.  Both were owned by BOA .  After 4 months of negotiation we were able to get the seller 30K in relocation assistance and all his deficiency debt waived.   The CAZA Group of Keller Williams Realty has a division specifically dedicated to helping clients that need short sale assistance, for more information visit our short sale blog www.virginiashortsaleadvice.com or contact us at 703-212-3344.