FAQ

The Following are reasons why many decide to short sell their properties: 1.If you owe more than your property is worth, and it does not make financial sense to keep the house. 2.If you are struggling to make your mortgage payments. 3.If your interest rate, monthly payments, or mortgage balance has been increasing. 4.Relocating to a new area and paying for the current property and a new living situation is not feasible.

Unlike some companies, we charge absolutely nothing to the homeowner. The lender pays the Realtor commissions and all traditional seller fees and costs. Neither Realtor, nor do we, earn anything unless we successfully complete your short sale.

We understand that as a homeowner, falling behind on your mortgage payment or dealing with the dreaded possibility of foreclosure can be a traumatic experience and an extremely stressful prospect. If for whatever reason you are currently behind on your mortgage payments or foresee that you will soon be unable to continue making your payments take heart: you do have options. The best thing you can do in this situation is to get fully educated on your options and to be proactive about solving the problem. Real Estate Solutions Inc. is here to help you identify and implement the best possible solution and to help you avoid foreclosure. Following a thorough analysis of your situation by our specialists, we will work with you and your lender to come up with the appropriate solution for your particular situation. Real Estate Solutions Inc. will diligently work on your behalf to negotiate and secure a fair agreement with your lender. Quite understandably, many distressed homeowners simply give up and give in to the foreclosure process, often without being fully aware of the options available to them. Depending on your particular situation, the following options may be available to you: "Short Sale" Deed-in-lieu Also known as a real estate short pay-off or a pre-foreclosure workout, a short sale is an agreement with a lender to accept less than the amount owed by a borrower via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure. Also known as voluntary conveyance, with a deed-in-lieu of foreclosure the borrower voluntarily transfers title back to the lender to avoid foreclosure. The lender then releases the borrower from the mortgage and repossesses the property. Keep Your Home Options "Loan Modification" Reinstatement "Forbearance" Repayment Plan A Loan Modification is a change in one or more of the terms of a borrower's loan, and results in a payment that the borrower can afford. With a reinstatement, the homeowner brings the mortgage current by making up for all missed payments and paying any late fees and penalties. Typically, when foreclosure is a result of a temporary loss of income, the lender may agree to a forbearance wherein they will allow the homeowner to delay payments for a short period or negotiate a payment plan to make up for missed payments over the course of several months. The lender may also agree to some combination between reinstatement and forbearance, enabling the homeowner to delay payment for a short period and then bring payments current by a specific date. A repayment plan enables the homeowner to submit payment of a portion of the past-due amount and penalties with future payments until the past-due amount and penalties are paid-off.

A real estate short sale is a process in which the lender allows a homeowner to sell a property for less than the mortgage balance. The proceeds of the sale go to the lender.

For example, John Q currently owes $500,000 on a property, but due to current market conditions, the property is now worth $300,000. John might be able to short sell the property, i.e..sell the property for market value. All of the money from the sale would go to the bank, title, escrow real estate brokers, etc. and John would be able to walk away without a foreclosure and without owing the bank anything.

Lenders only agree to a short sale if it is requested, submitted and properly negotiated.

Minimize damaging impact to credit: Foreclosure can remain on your credit for up to seven years while a short sale usually gets reported as a settled debts and is significantly less damaging. With a short sale, your FICO score will not be as negatively impacted as it would be with a foreclosure, and you will be able to get into a new home much sooner as well. Minimize financial exposure/liability: In many foreclosure situations, the lender will ultimately sell the property at a significant discount once they foreclose and repossess the property. The homeowner can then be financially liable to the lender. While the same may be true with a short sale, the difference is with a short sale the homeowner is still involved in the process and can therefore contribute their input and have more control over the sale price of the property and the potential associated liabilities. In a foreclosure, however, once the lender repossesses the property, the homeowner is typically defenseless with respect to what follows next.

In order to be eligible for a short sale, a homeowner must be able to prove to the lender that they are a victim to a "hardship" and are therefore unable to continue making payments on their mortgage. A hardship situation is one that is the result of some extenuating circumstance that forced the borrower into a position where they can no longer afford their mortgage payments. While every situation is unique, some common examples of hardship include: "Unemployment or loss of primary income source" Inability to work due to health crisis "Mounting medical expenses "Employment relocation "Failure of business " Bankruptcy "Death of spouse or significant other " Divorce or separation.

In addition to the homeowner proving hardship, lenders require a specific set of supporting financial documents to consider a short sale. Contact Real Estate Solutions Inc today and one of our specialists will help you get started.

As soon as you possibly can. Foreclosure situations tend to be extremely time sensitive. The sooner we can begin the negotiations with your lender, the greater the chances of a successful resolution. There is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings against you. Time is of the essence! Please contact us today for a free consultation with one of our specialists.

The Following are reasons why many decide to short sell their properties:

• If you owe more than your property is worth, and it does not make financial sense to keep the house.
• If you are struggling to make your mortgage payments.
• If your interest rate, monthly payments, or mortgage balance has been increasing.
• Relocating to a new area and paying for the current property and a new living situation is not feasible.