Home Selling in 08527>Question Details

Jane Carol, Home Seller in 08527

we can no longer afford to live in our home. should we consider ashort sale?

Asked by Jane Carol, 08527 Mon Sep 26, 2011

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33
Jane,

In this volatile situation, beware of those with a "paid" designation "SFR" (Short Sale and Foreclosure Resource) without any realtime experience.

There are those who have done a short sale or two and others who have done beau coup short sales since the decline of the market, yet others who have been doing short sales since before this recent market decline.

Be wise, and make sure they provide you with documented proof of experince not jut words.

Francesca Patrizio, Broker Sales Associate, ePro, SRES
Francesca@PatrziioRE.com
732.606.2931 (I'm not a short sale expert, but will refer u to one! - I can take a short sale, but it wouldn't be doing u justice!)
Web Reference: http://www.PatrizioRE.com
3 votes Thank Flag Link Wed Sep 28, 2011
Thanks John for the quick response. I've been involded in 40+ short sale option situations and found that very few owners qualify for the option or would benefit short or long term financially. I've been involved in short sale options (15+ years in the banking industry) and feel confident in my skills and competence as an agent in this area business. I'm still intrigued by your comments---please elaborate. How many sales? Thanks again!
2 votes Thank Flag Link Mon Oct 3, 2011
I'm sorry John I must have missed what you wrote, how many sales did you say you have assisted homeowners in performing?
2 votes Thank Flag Link Mon Oct 3, 2011
Hi Jane -

Again, yes, you can list your home and we would list it subject to third party approval (a short sale) and work towards a loan modification in the process.

Look for a local agent that has short sale experience and understands the process of helping you with your short sale. I suggest you look for a Realtor that has the SFR designation and can explain the process to you in detail from beginning to end to help you understand what is about to transpire.

There are too many agents that move from company to company, give themselves a catchy, "with the times name" to try and procure business for themselves. When in fact, all they do is just turn the buyer information over to an attorney, enter a false attorney review period and wait for the results.. Doing nothing more to close the transaction. You need an agent that knows the process and how to sell the short sale property from beginning to end.

Which is the main reason I suggest you search for a Realtor that has experience in short sales, one that has taken the initiative in seeking out all that is available to them.. like the SFR designation. Given my Wall St financial background, I have offered much to the class in training myself, but that is really not necessary to brag about. You would be surprised as to what this class /information offers the motivated agent over the average agent. Something more than the kind of agent that moves from company to company following a buck, claiming to know the market. You need a Realtor that has experience in closing short sale transactions. Period.

The point is to seek the information to help the client achieve the goal.
I manage the Freehold Boro office and I am a local expert in the short sale and foreclosure market.
Give a call and we can work on helping you get your home sold.

John Sacktig
Broker / Manager
SFR (Short Sale and Foreclosure Resource)
Orange Key Realty
Direct: 732-213-1409
JSacktig@orangekeyrealty.com
2 votes Thank Flag Link Thu Sep 29, 2011
Hi Jane -

Yes you can list your home and we would list it subject to third party approval (a short sale) and work towards a loan modification in the process.

Look for a local agent that has short sale experience and understands the process of helping you with your short sale. I suggest you look for a Realtor that has the SFR designation and can explain the process to you in detail from beginning to end to help you understand what is about to transpire.

Please call or email and we can meet and discuss your situation. I manage the Freeehold Boro office and we can meet at he office or I can visit to discuss.

Let me know!

John Sacktig
Broker / Manager
SFR (Short Sale and Foreclosure Resource)
Orange Key Realty
Direct: 732-213-1409
JSacktig@orangekeyrealty.com
2 votes Thank Flag Link Tue Sep 27, 2011
Jane,

There are many options available to you as everyone has discussed below. Be sure you know all your options and meet with multiple professionals to see who can assist you best and with whom you feel most comfortable.

Feel free to visit my website at http://www.thehomeownerbailout.com and visit the tab "foreclosure solutions" to see all the options available to you. If a short sale is the best option out of all the possible avenues you can take than feel free to give me a call as one of the agents you interview. My team and I have closed over 50 short sales and as Jennifer mentioned, there are programs available that will give you relocation assistance. I have seen as much as $15,000 offered to homeowners.

Be sure you do your homework and know your options.

Best Regards,

Thomas Zdanowicz
Broker-Associate, CDPE
"THE OCEAN'S SIX GROUP" http://www.osmls.com
ReMax Real Estate LTD.
C. 732-644-9084
O. 732-920-1900
E-Fax. 888-466-2248
E. tzhomes@yahoo.com
NJAR Circle of Excellence Award Winner
2 votes Thank Flag Link Tue Sep 27, 2011
Jane,

Your question is a bit vague. I'd ask:

(1) have u applied for a loan modification, I understand they are giving them out more freely than in the recent past

(2) Are u current on your payments?

(3) What is the market value of your home vs. the amount owed.

Keep in mind that short sale while it sounds like an easy way "out" causes one alot of grief. Loan mods hit the credit score about 100k, short sales 2 years and foreclousres 7 years. There is no guarantee that you can sell in a short sale giving the current inventory of homes for sale and may wind up in foreclosure, therefore do u really want to rent for the next 7 years or so?

Call me if you'd like and we can talk about the best move. Ultimately I will refer you to an account and financial advsior, but in this way you can get a perspective of your house value via a Realtor, usually the best way to start in the decision making process.

Francesca Patrizio, Broker Sales Associate, ePro, SRES
Multple sales in Jackson, Freehold over the years
732.606.2931 (24/7)
Web Reference: http://www.PatrizioRE.com
2 votes Thank Flag Link Mon Sep 26, 2011
J - And the fancy name team person..

Sure, I know that you would love to know what I know and where it comes from, But, why would I need to help you along with your business? it is flattering that you want a lesson, but I'm not interested.

I am positive that Jane would be more that satisfied with my information when presented to her. The service and experience I offer would surely exceed Jane's expectations!

John Sacktig
Broker / Manager
SFR (Short Sale and Foreclosure Resource)
Orange Key Realty
Direct: 732-213-1409
JSacktig@orangekeyrealty.com
1 vote Thank Flag Link Mon Oct 3, 2011
Hi John,

I too am very interested in reading more related to your expertise with short sale options. What is your percentage of listings/sold within the past 24 months. Thanks so much!
1 vote Thank Flag Link Mon Oct 3, 2011
John, you do sound like an expert on Short Sales. Please enlighten us on how many Short Sales you have sold, we would all love to hear about your expertise.
1 vote Thank Flag Link Mon Oct 3, 2011
Ocean's Six,

I enjoyed reading your answer! After a 15+ career in banking I started working in RE early 2007. Once in the RE field I was amazed and shocked as too how many agents were claiming (legally claiming) to be "experts," in RE---and now experts in distressed property sales. I have never witnessed so many type disgnations in my life. I started closing short sale deals in Jan. 2007 and rather quickly at that time. Although I have found through seller consultations that few actually qualify for a short sale option, I then find those properties being listed as a short sale options. Maybe I'm missing something and need to take a 4 hour course and get disignated. Perhaps a 2 day course will make up for the years I spent in the industry related to typical and distressed residential and commercial property sales :). Thanks so much and good luck to you!
1 vote Thank Flag Link Thu Sep 29, 2011
J and Francesca, I am so glad you brought up that point. There is no substitute for experience. I received my CDPE (Certified Distressed Property Expert) designation a few years back which was a 2 day class and that was at a point where I had already closed 20 short sales. I found it to be rather helpful. And after talking to a few agents on here and since it is backed by NAR (National Association of Realtors) I decided to get the SFR designation a month ago to add a few letters after my name. It was a 7 hour class that taught me everything I already knew from the CDPE seminar, in fact I found myself suggesting things to the rest of the class that would help with the negotiations. I would be lying if I said it was money well spent. You can't teach some of the things learned in the field because to be able to teach those tricks you have to be a Full Time Short Sale Expert and unfortunately those instructors are Full Time Teachers (through no fault of their own, its just the way it is).

It brings me back to college where I was a Finance major. I took so many classes taught by professors but the one class that stands out the most and was by far my favorite and most informative class was my Derivatives Class. The reason being is that it was taught by an adjunct which is a professional who teaches a class or two on the side. The instructor was a hedge fund manager with an investment firm in Red Bank. He made the class fun with real world experiences and more information than any class I had ever had.

Moral of the story is to be weary of designations for they do not make an expert in and of itself.

Best of Luck in your situation and rest assured that you are not alone, there are many homeowners in your situation and there is help for you.

Regards,

Thomas Zdanowicz
Broker-Associate, CDPE
"THE OCEAN'S SIX GROUP"
http://www.osmls.com
ReMax Real Estate LTD.
C. 732-644-9084
O. 732-920-1900
E-Fax. 888-466-2248
E. tzhomes@yahoo.com
NJAR Circle of Excellence Award Winner
1 vote Thank Flag Link Thu Sep 29, 2011
I totally agree with Francesca! As some agents continue to proclaim being "experts" in general real estate there are those who also claim to be "experts" through certificated distressed property designations. Without realtime experience and several short sale deals under the belt, success may very well be limited for this reason. Proving "action" speak far louder than words. There are valid reasons why majority of short sale options do not make it to the negotiation stage much less a closing table. This "action" is felt across the US---that in itself is credible proof in my opinion. Good luck!
1 vote Thank Flag Link Thu Sep 29, 2011
Before thinking of letting go of the home, try the first alternative of having a short sale. Check first the value of your home in the neighborhood. And if you think the value is much less than what you owe, call your lender and check if they have a Loan Modification Program you can work out with them. For sure someone from your lender can guide you through it if ever they have one. Normally they have a website that you can visit and make you more confident in your decisions. If you can not be approved of the Loan Modification if ever they offer it, that's the time you have to consider Short Sale.

At this point, you have to recognize at what stage you are in if ever you already defaulted in your payments. Ask for professional advice about your tax and credit ramifications when doing a short sale. For sure a professional can point you on the right direction if you decide on doing a Short Sale.

There are other options, you can visit government websites like http://www.makinghomeaffordable.gov and decide for yourself if Short Sale is the right thing to do.
0 votes Thank Flag Link Sat Oct 8, 2011
If you can no longer afford to live in your home, contact your lender. This should be your first step. Simply call the number listed on your monthly mortgage statement and ask to speak to someone that can help you keep your home. Ask them for their special programs to help you keep your home AND ask them for government programs designed to help you keep your home.

There are Home Loan Modification Programs available. They are designed to help you keep your home. For example, I have one client who owned a home with a $615,000 first mortgage with a monthly payment of nearly $4000 per month. Her 2nd mortgage was an additional $750 per month.

She applied for a Loan Modification from her first mortgage lender. It took nearly 5 months to complete, but she successfully got a Loan Mod that reduced her principal (amount she owes) on her first mortgage from $625,000 to just over $400,000. And it reduced her payment to $2200 per month at a 2% fixed rate for 25 years. The new mortgage payment also INCLUDED an impound account for real estate taxes and insurance.

She also applied for a loan modification from her 2nd mortgage, which took about 30 days to process. The awarded her a temporary loan modification reducing her payment to $175 per month for 2 years. She qualified for that loan because her husband was on unemployment and her lender had a special program for people on unemployment.

IF your financial situation does not allow you the time it may take to qualify for a Loan Modification, which may or may not be approved, then ask your lender for other options like a Short Sale Package or Deed in Lieu of Foreclosure.

No matter what you decide to do, it's a good idea to consult with a free debt counselor through HUD (U.S. Department of Housing And Urban Development). You can find lots of FREE INFORMATION at their website: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_for…

Be very suspicious of any service offering to help you with loan mods, short sales, or foreclosure avoidance that charge a fee. It is illegal in many areas and even attorneys need to be registered/certified to offer services and are not allowed to charge up-front fees.

I hope this helps! Let me know if I can be of further assistance.
0 votes Thank Flag Link Sat Oct 8, 2011
Without knowing your particular info, YES, you should consider a short sale as 1 of your options. But there any many other options available to you. Most of these options depend if you have equity in the home or not. If you do, I highly recommend that you re-fi your home, Intrest rates are at all time lows.
A Loan Mod is another avenue to consider. But be weary of scam artists out there. you must do your homework to avoid these crooks. if you need I have a very trustworthy gentleman that I can pass on to you. He doesnt charge you until you have the Loan Mod in place.
A short sale is a valuable tool if you are upside down with your home, i.e. no equity. At this point you have options with your lender to rectafy your shortage of payment. You should call them as soon as possible after you recieve your NOD letter to start talking about such options.
0 votes Thank Flag Link Sat Oct 8, 2011
Dear Jane,

Consider all options available to you.

HOMEOWNER OPTIONS TO AVOID FORECLOSURE



1. Short Sale

A short sale is an agreement between the lender and the borrower to put your house up for sale for an amount that is less

than the remaining balance of your mortgage. You have to give up your property and buy or rent another place to live in

after the sale’s closing. It may totally eliminate your loan or reduce it a considerable amount and you may get assistance for

relocation. Although it will still have a negative impact on your credit score, a short sale lets you recover your credit score

faster than a foreclosure.


2. Refinance

If the homeowner’s credit allows for a refinance and if the homeowner meets

the eligibility criteria, an option is HOPE for Homeowners (H4H) a program

available through the U.S. Department of Housing and Urban Development

Real estate professionals should also urge homeowners to visit the Making

Home Affordable Web site for information: http://www.MakingHomeAffordable.com.

3. Lender Workout

Lenders often will work with distressed homeowners to help them keep their

homes by reducing or rolling back interest rates, forgiving back payments, adding

them to the loan amount, or possibly recasting the entire loan and wrapping all

fees into a fixed‐rate mortgage.

Loan Workout Options

• Forbearance. Lenders may let you make a partial payment, or skip payments, if

you have a reasonable plan to catch up. Tell your lender if you expect a tax

refund, a bonus, or a new job.

• Reinstatement. Reinstatement refers to making a payment that covers all your

late payments, usually at the end of a forbearance period.

• Repayment Plan. If you can’t afford reinstatement, but can start making

payments to catch up, the lender may let you pay an additional amount each

month until you are caught up.

• Loan Modification. Your lender may agree to amend your mortgage to help you

avoid foreclosure. The options include:

o Adding all the missed payments to the loan amount and increasing the

monthly payment to cover the larger loan.

o Giving you more years to pay off the loan, lowering the interest rate,

and/or forgiving part of the loan, to lower your monthly payment.

o Switching from an adjustable‐rate mortgage to a fixed rate mortgage, so

you aren’t exposed to increases in your monthly payment.

o Requiring amounts for taxes and insurance to be included with your

monthly mortgage payment so you avoid big bills in addition to your

mortgage.

• Sign Over the Property to the Lender in Exchange for Debt Forgiveness. This can

hurt your credit, but is better than having a foreclosure in your credit history.

Source: Reprinted with permission from the National Association of REALTORS® and the

Center for Responsible Lending.

4. Sell and Bring Cash to Closing
0 votes Thank Flag Link Thu Oct 6, 2011
The first step would definately be to decide whether you want to keep the property or now. If you want to stay with the home then, yes, contact your lender and see what options are available to you. Once option could be a Loan Modication.

If your Modifciation is not getting approved and you have decided that you want to consider giving up the home, then yes a Short Sale could be a suitable option. Once there is an interested buyer, to have a smooth short sale transaction you need a great team. By this I mean a realtor experienced in negotiating short sales and also an experienced attorney as these transactions can be a little more complicated and may be under a greater time restraint than a regular transaction.

With a decent offer by a Buyer, a well rounded realtor and attorney should be able to negotiate with your lender for a Short Sale approval that will allow you to sell the property without having any futher obligations to your lender in the future. A perfect transaction is one where you pay no costs out of pocket and end up owing no money to the bank . You lose the property but you don't have to lose anything else.


----
Rifah Manasra, Esq.
Manasra & Manasra, PC
1169 Summit Avenue
Jersey City, NJ 07307

(201)222-3838
Manasralaw@gmail.com
0 votes Thank Flag Link Thu Oct 6, 2011
You should talk to your lender and explain your circumstances. You should also consult your attorney. A short sale is less damaging to your credit score than a foreclosure. However, the lender must agree to a short sale.
0 votes Thank Flag Link Thu Oct 6, 2011
I would first call the bank and let them know and then ask them that you are interested in a loan modification program. make sure they explain to you the do's and don'ts, plus' and minus', and most importantly, CONSULT WITH YOUR ATTORNEY BEFORE YOU DO ANYTHNG,
0 votes Thank Flag Link Tue Oct 4, 2011
Look into a Loan Modification if you can so you could keep your home but I would advise a Short Sale. It's better for all parties.
0 votes Thank Flag Link Tue Oct 4, 2011
If you cannot afford your home, call the bank in question and ask if you can do a short sale or ask them what are your options. If your only opton is a shortsale, this process takes a little while for the bank to approve, so doing it sooner than later is best. Once the shortsale is approved you should list your home for sale. If you list your home before short sale process is a approved and you have a buyer sometimes it will take too longer (dependant on buyer) and the deal can fall through. This way when you have an approved buyer the shortsale process won't be that long to go in contract and to close. I hope this helps and good luck.
0 votes Thank Flag Link Tue Oct 4, 2011
A short sale would be right, especially if you owe more on the home than it is worth. See http://www.shortsalespeople.com
0 votes Thank Flag Link Tue Oct 4, 2011
I'm very sorry to hear this. It depends on the market value on your home and what you actually owe. Just because you may not be able to afford living in your home does not necessarily mean that you have to go through the process of a short sale. It's a tough question to answer given the amount of information presented. Make sure you continue to exhaust all available resources to determine the best situation for you now and in the long term. There are may be many types of creative ways to tackle a problem, and it's great that your on here to learn how to choose the correct one. Best of luck.
0 votes Thank Flag Link Wed Sep 28, 2011
Jane you have a number of options that may or may not be practical for you or acceptable to your lender. Short sale is one, as is deed in lieu of foreclosure, loan modification etc. Specifics such as market value, the particular investor who owns your loan, your verifiable income, assets etc all go in the mix. I have seen the process take quite a long time with much uncertainty. I suggest you speak directly with agents familiar with short sale process. Also speak with your lender. If they are merely servicing the loan be prepared for the run around. Feel free to email me for at length discussion. I have both assisted clients with this and personally seen the lunacy that is going on. Good luck.
0 votes Thank Flag Link Wed Sep 28, 2011
Hi Jane,

I would advise before going through the lengthy process of a short sale option to be sure you indeed have a legitimate hardship, and most importantly, please contact your lender first to see if you qualify for a number of other options based on your personal situation. It would be very disheartening to move forward with a short sale option without knowing if you truly qualify which may result in a worse situation for you and your family. I have learned over several years that most home owners do not qualify for a short sale option. Good luck!
0 votes Thank Flag Link Tue Sep 27, 2011
You must first speak to an accountant to see if a short sale is in your best interest.
Laureen Coup
Broker-Salesperson
Weichert Realtors
732-674-7506
0 votes Thank Flag Link Tue Sep 27, 2011
Hi Jane

The first thing you should do is try for a loan modification. Unless you are coming short on your mortgage because you lost your job and don't see you finding a comprabable one soon. If the bill of the house and weight of the mortgage are just to stressful for you then you should call you back and start the short sale process. They will then advise you to contact a Certified Distressed property Expert (CDPE) which I am and I would be happy to assist and go through all the option that are out there. They have programs that you might qulify for that give you relocation assistance up to $3000. If you have an y questions feel free to contact em at 732.300.5630. My office is Century 21 Action Plus Realty right in Jackson. I've been doing almost nothing but short sales since 2007 and I would be happy to help.

With warm regards,
Jennifer L. Kuhn, ABR, CREN, CDPE
Certified Distressed Property Expert
NJAR Circle of Excellence Sales Award, 2007-2010
2009 Quality Service Award
2009 & 2010 Top Producing Agent
C21 Action Plus Realty
10 North County Line Road
Office 732-905-1495
Fax 732-719-9847
Cell 732-300-5630
Direct 732-719-1095
Email JLKHomeSearch@yahoo.com
0 votes Thank Flag Link Tue Sep 27, 2011
Hi Jane
Sorry to hear of your financial situation, unfortunately in todays economy many families are in the same position. Everyones circumstances are different. Typically a short sale in real estate occurs when the amount you owe on your home is greater than what the property can be sold for. It is a way to avoid foreclosure and to still be able to pay off your mortgage by settling with the lender. If you have been turned down for a loan modification or are facing financial hardhip & / or can show that you have made an effort to sell unsuccessfully then you will probably be an ideal candidate to do a short sale. I live in Jackson, have sold many homes here & have assisted many sellers with short sales. I can help you if you'd like Feel free to call me if I can be of assistance

Best,
Joan Congilose
RE/MAX Central
Cell (732) 232-5277
0 votes Thank Flag Link Mon Sep 26, 2011
To help you make the best decision I would suggest you speak with an attorney that specializes in real estate law. You want to understand all the tax liabilities, financial liabilities, etc. Did you know that some employers will not hire a person that has gone through a shortsale or foreclosure depending on your career?

You should be able to get consultation from a trusted real estate attorney for just a few hundred dollars. Well worth the peace of mind.

Good luck!
0 votes Thank Flag Link Mon Sep 26, 2011
Hi Jane,
The goverment has a web site http://www.knowyouroptions.com that you might find helpful.
Good luck,
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Mon Sep 26, 2011
Hi Jane,

First you should contact your lender(s) to see about a possible loan modification. If this is not an option for you, a short sale may be your best option. Talk with your lender first and then contact a local Realtor.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Sep 26, 2011
Hi Jane,
Have you tried to speak with your lender about a modification? If you have & it has failed, you may want to consider a short sale. I am experienced in foreclosure prevention & have helped many families avoid foreclosure. Please call me so we may talk privately if you like.
Kim 732-567-4001
0 votes Thank Flag Link Mon Sep 26, 2011
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