Troy began his career in real estate by specializing in short sales to assist both agents and homeowners. While working at two different short sale companies -one of which was a law firm, Troy handled thousands of short sales and obtained approvals on many of them, making him a veteran to the real estate industry. His attention to detail, tenacity and devotion to clients resulted in closing over $400 million worth of short sale properties in 5+ years and alleviating hundreds of thousands of dollars worth of homeowners’ debt.
Short Sales Explained
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved and roughly 50 % of the time the seller gets paid to do the short sale!
But to be technical, here’s a more official definition:
- A homeowner is ‘short’ when the amount owed on his/her loan(s) is more than what the sale will net the bank(s).
- A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship – There is a situation (minor OR major) causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: “You have more monthly debts than money to cover your debts .” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Several banks have allowed short sales without meeting the above criteria, don’t let this stop you from pursuing a short sale if you owe more than your home is worth. I HAVE completed short sales when the homeowner is current on their mortgage payments.
This seems simple enough, but it is a complicated process that takes the expertise of an experienced Real Estate professional and paralegal. Feel free to browse the “Testimonials” page for just some of the HUNDREDSof past short sale clients I have helped over the Years.
Short Sale Benefits
You may ask yourself, “what are the benefits of completing a short sale”, OR “why not just let it foreclose”? Well, here are the anwsers:
- IT COSTS YOU NOTHING TO DO A SHORT SALE!!!!
- Use me as the REALTOR and be represented by a law firm at NO COST to you!!
- Most banks are now offering short sale seller(s) anywhere from $2,000 to $35,000 to complete a short sale if you fall into their program criteria.
- If you are behind on your HOA dues, most of the time I can get the bank to pay for some or all of the delinquent dues.
- I have saved countless seller(s) from filing a bankruptcy by helping them complete a successful short sale.
- Protecting you from potential tax liability following a foreclosure.
- Protecting you from potential liability following a foreclosure.
- Being able to purchase a new home sooner than later (there are programs available NOW that allow you to buy IMMEDIATELY AFTER A SHORT SALE!!!!!).
- STOP your foreclosure sale Date AND keep you in the home longer while I negotiate the short sale.
- Credit impact can be as minimal as 50 points.
- We can do a short sale while the seller(s) is in a ACTIVE bankruptcy (chapter 7 or 13).
- I handle EVERYTHING all while giving you the “white glove” service you expect from a proffesional!
- Lender/Bank pays ALL closing costs and commissions (again NO COSTS TO YOU!!).
- Can lower credit score by 200 points or MORE.
- Foreclosure remains a public record and on credit history for 7 Years.
- Red flag to future creditors.
- Unable to obtain a Fannie Mae OR Freddie Mac loan for 4 – 5 Years.
- Unsettled delinquent HOA dues.
- If vacated, vandalism and theft is a common occurrence.
- Potential financial liability with the loans attached to the property (even after the foreclosure).
- Lenders/Banks would rather do a short sale.
It is my hope that the above information helps you! If you have questions or feel you want to pursue a short sale, please contact us for a free consultation at 480-750-9420 or 952-412-7233 OR send us a confidential email on our contact page.
Understanding your options now could mean all the difference in the worl