understanding short sales-

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UnderstandingUnderstandingUnderstandingUnderstanding

Short SalesShort SalesShort SalesShort Sales

Is it a good option for me/us?Is it a good option for me/us?Is it a good option for me/us?Is it a good option for me/us?


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What is a Short Sale?What is a Short Sale?What is a Short Sale?What is a Short Sale?

A short sale is the process by which a homeowner can sella house for less money than he actually owes on the mort-gage(s). This is best accomplished by using the servicesof a skilled Mortgage Negotiation Specialist AND a REAL-TOR who provide the and market expertise that mortgageholders need to consider whether to reduce the mortgagebalance and allow the sale to occur. The mortgage lender(or bank) may actually agree to take a loss on the mort-gage because the market value of the home has fallen

below the mortgage balance AND the homeowner has ahardship that is not temporary and is therefore in a poorfinancial condition that will not allow him to continue tomake regular mortgage payments. If the bank approvesthe discount on the mortgage, the home can be sold for alower price without the seller having to come up with cashto cover the shortfall. In that case, the mortgage is satis-

e an any orec osure process s ops


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e an any orec osure process s ops.

Why would a bank or mortgageWhy would a bank or mortgageWhy would a bank or mortgageWhy would a bank or mortgagelender want to do a short sale?lender want to do a short sale?lender want to do a short sale?lender want to do a short sale?

Banks do not want to own real estate, they want to lendmoney and collect interest. When a bank takes a propertyback via foreclosure, it is a long and expensive process

and often results in holding the property in their inventoryas a non-performing asset. Banks have a limit to theamount of non-performing assets they want to hold. Oncethis limit is exceeded, they have strong incentive to get ridof the properties at discount prices. For a lender, doing ashort sale avoids many of the costs associated with theforeclosure process. Attorney fees, delays from borrowerbankruptcy, damage to the property, costs associated withresale, property tax, insurance, etc. all must be paid by the

bank during a foreclosure. In a short sale scenario, thelender is able to cut its losses by getting rid of the propertyfaster. This is particularly true right now, not only becausethe real estate market is so slow, but also becausethe foreclosure rate is high.


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How do I know ...

if a Short Sale is agood option for my

property????

Answer this first set of questions.

Can the house be sold for enough to pay offwhat you owe on it, pay the real estatecommission, closing costs, taxes, and other costsof sale? Do you have the means to solve the financial situation on yourown? Do you have money available in a bank account or equity inanother property that you can use to catch up or pay off yourmortgage(s)? Has your temporary financial hardship been resolved?

Do you intend to stay in the house (even when you know you will have to


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Do you intend to stay in the house (even when you know you will have tomove if the house forecloses)?

If you answeredyes toany of the above, you

may NOT be a goodShort Sale candidate,and you should pursue

other options

If you answered NO..

TURN THE PAGE PLEASE


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Are you willing to move out of the house (after it issold, don't need to move right away)?

Have you attempted a loan modification or forbear-ance with your lender and were not successful?

Is any foreclosure sale more than 10 days away?

Do you owe more on the house than the house isworth in todays market?

Does the house have more than one mortgage onit? Do you have a home equity loan?

Consider these questions...Consider these questions...Consider these questions...Consider these questions...

? ff f


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Does the house need work? Does it differ from the

norm in a way that would make it difficult to sell?

Might the house be difficult to sell because of itslocation?

If you answeredyes to anyanyanyanyof these questions above,your home may bemay bemay bemay bea viableShort Sale option.


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Possible Benefits ofPossible Benefits ofPossible Benefits ofPossible Benefits of

Doing a Short SaleDoing a Short SaleDoing a Short SaleDoing a Short Sale

1. You will keep a full blownforeclosure off your credithistory. Typically a Short Salewill impact your credit less thana foreclosure. Before and afterstudies have shown that aforeclosure will lower your creditscore more than a Short Sale will lower your credit score.You don't have to say "Yes" when asked on future loan

applications whether "you have had a house go toforeclosure"

2. You will be eligible, under Fannie Mae guidelines, to buyanother home in 2 years instead of 5 years for aforeclosure. FHA and VA have no published waitguidelines, and if you get your credit score back up with aone year good pay history, you can qualify for a new

.3 W ti t ith th l d f FULL SATISFACTION


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3. We negotiate with the lender for FULL SATISFACTIONof all debts. If the house goes all the way to foreclosure,costs continue to add up until the lender gets the houseresold. The deficiency will be much higher than if they doa Short Sale, and the lender could pursue a deficiencyjudgment against you.

4. Working out a Short Sale may allow you to avoid filingbankruptcy.

5. Retain some dignity in knowing that you sold yourhome.

6. You won't suffer the social stigma of the "F" word:Foreclosure.

7. Although you won't receive any funds at closing, it won'tcost you anything either. All costs of the sale come out ofthe lender's proceeds.

8. Typically homes sold in a Short Sale are sold "As-Is", soyou won't need to spend any money fixing anything,

unless you choose to do so.


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Possible DrawbacksPossible DrawbacksPossible DrawbacksPossible Drawbacks

of Doing a Short Saleof Doing a Short Saleof Doing a Short Saleof Doing a Short Sale

1) Waiting for the bank to approve a shortsale offer can be frustrating.

2) The bank will want to exam-ine personal records such as

tax returns, bank accounts,pay stubs, assets and li-abilities, in addition to ask-ing for a hardship letterfrom you.

prospective buyers will


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p p ymean showing your

house. If you have alreadymoved, or plan to move soon,

this is not an issue.

4) There is no assurance the bank willaccept a Short Sale offer.

5) As a short sale represents a loss for the lender, they can report theamount lost as debt forgiveness to the borrower. They could issue a1099-C as income to the borrower. However, the Mortgage Debt ReliefAct of 2007 allows borrowers to exclude this income for a principal resi-dence (Refer to IRS Publication 4681 and IRS Tax Form 982 for moreinfo). It should be noted the lender can do this in a foreclosure as well.

6) If you have significant assets, you are giving information to the lenderthat they might use to try and get some of those assets.


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Why should you work with TheVeenstra Team and our Professional

Mortgage Negotiation Specialists?

You get the benefit of a veteran REALTORand real estate team (TheVeenstra Team) with over 22 years of home selling experience and topnotch marketing strategies.

We have partnered with a Professional Mortgage NegotiationSpecialist and his team who are getting the job done!

We list the home at a price that the market will bear, and work theShort Sale with the lender to create the discount needed to get thehouse sold. You don't have to waste your time trying to sell a housethat will never sell because it is priced too high for this market.

You do not have to pay any costs or fees for negotiating the short saleor selling the property. You pay nothing.

We handle all of the headaches. Negotiating Short Sales can be time


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consuming and frustrating.

We work with investors who will make a guaranteed offer on yourhouse. Most lenders require an offer before they will even consider aShort Sale. You dont have to wait weeks or months for a qualifiedbuyer before you can even start the Short Sale process our investorswill buy your home and we can start the process immediately!

Our Mortgage Negotiation Specialist partners are highly trained andexperienced and bring the highest level of professionalism andexpertise to our Short Sale negotiations. They know exactly what tosay and who to say it to. They even have inside contacts at many ofthe major banks to expedite the process. Your chance for success willbe much higher when you work with us.

We are committed to customer service and helping you make the bestchoices for your situation.

We respect your privacy. All information will be kept strictlyconfidential


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How does the process work?How does the process work?How does the process work?How does the process work?

1.The Veenstra Team and our Mortgage Negotiation Partners will analyzeyour situation and let you know if your situation meets the criterion and is agood short sale candidate.

2. Most lenders will not consider a short sale unless an offer has beenmade for them to consider. We have investors who will make an offer tobuy your property, so long as it is in our "sweet spot". Our investorsactually bring an offer to purchase!

A good short sale candidate includes:

Decent selling condition (Ugly is ok, but no major problems) Generally not over 50 years old NO condos, town homes, lots, unfinished new homes, or mo-

bile homes Good chance for resale (at the right price) You have experienced a long term hardship and cannot pay

off the note or continue to make payments-

ing You are not a candidate for a loan modification or forbearance


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You are not a candidate for a loan modification or forbearance Foreclosure sale is more than 10 days away The property is over-leveraged (no equity) The property is not included in any current bankruptcy pro-

ceedings. If so, call us when it is dismissed or discharged.

3. We will meet with you to execute documents which allow our negotiatorsthe authority to initiateand negotiate the Short

Sale, and give us per-mission to begin mar-keting the house so ourinvestors can resell itafter the Short Sale isaccomplished.


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Is a short sale a guarantee that I

will not face foreclosure?No, The worst case scenariois that the offer made(after we drop the price to what the market willbear) is not enough to satisfy the lender fora short sale. In that event, nothin we

4. Once a short sale is accepted by the lender and while the short sale isbeing processed, the house will be listed on the Multiple Listing Service bythe Veenstra Team and will beaggressively marketed. The house will be listed at or below market value but

this does not impact the short sale settlement for you. The investors will belooking for a buyer to purchase the home from them. The Veenstra Team willearn a commission for the sale but this is paid by the investor group. Thereare no fees to the short sale home seller.

could have done would haveprevented the house from going to


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p g gforeclosure. There has been nocost to you, and you are in noworse a position than you werebefore we started the short sale.

The best case scenariois that the foreclosure isprevented, the house gets sold,you get on with your life without adeficiency hanging over your head, the lenderdoesn't have to take the house back (and saves money), TheVeenstra Team makes a full commission and our MortgageNegotiating Specialist Partner makes a profit for putting it all

together. That's a win-win-win-win.


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CarolandI

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mo

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DonandCa

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Ijustwantedtowriteaquicknoteofthanksforyour

mostneeded(andappreciated)negotiationservices.

YousavedmeaTONoftimeandmoney,butmostof

allSTRESS:-))Iknowalltoowellhowmuchtimeand

aggravationshortsalescanbe(sittingonthephonefor

HOURSjusttobedisconnected,tellingthesamesce-

nariototendifferentpeopleandstillnotgettingtothe

rightperson,"youdidn'tgetthefax....that'sfunnyI

havemy60thconfirmationrighthereinmy

hands...nowWHATnumberdoIneedtosendthis

to?"),sohavingsomeonewhohasbeen"ontheother

side"nowonMYsidehasproventobeoneofthebest

businessdecisionsIcouldhavemade.Yourknowledgeandhands-ontobeagreat

ncehaveproveneingabletomaneuverthruthe

nutiaofrulesandregulationsthelenderskeep

changingonus.Iwouldhighly revicestoanyone


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keepighlyrecommendyourser-

oanyoneouttherewhoislookingtooutsource

thispartoftheirbusiness.Andmostimportantly(and

thosepeoplewhohavedonenegotiationswillappreci-

atethis),Iwouldhavetorecommendyoubasedon

yourprofessionalismandpromptnessinwhichyougot

thedealsdone.

Thankyousomuchandpleasefeelfreetousethisasa

testimony!!

BrianaWeaver


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So whats next?

How do we getstarted?

Complete the enclosed form and submit itto the Veenstra Team by fax or email.

Email: [email protected]

FAX: 773-751-2206

We will get back in touch with you andexplain the rest of the details!

If the form is missing from


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this booklet, call us at269-350-5514.

We are eager to serve!We are eager to serve!We are eager to serve!We are eager to serve!

Check out our websitesat www.VeenstraTeam.com orwww.KzooNeighbor.com

Follow us on Twitter.com/VeenstraTeamFriend us on Facebook Facebook.com/VeenstraTeam

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