what is a short sale - marshall carrasco short sale expert reno nv

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What is a Short Sale What is a short sale? Benefits of a short sale Why choose Marshall Realty? Short Sale Vs. Foreclosure Why walking away is not the answer Loss mitigation tools for delinquent mo www.renohelp.org Call : 775- 525-1205

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Marshall Carrasco Reno's #1 Short Sell Expert www.renohelp.org. A short sale is when a home is sold for less than the amount owed to the lender or lenders. The majority of homes in Nevada currently listed or recently sold have been in the form of a short sale.

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Page 1: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

What is a Short Sale

• What is a short sale?• Benefits of a short sale• Why choose Marshall Realty?• Short Sale Vs. Foreclosure• Why walking away is not the answer• Loss mitigation tools for delinquent mortgages

• What is a short sale?• Benefits of a short sale• Why choose Marshall Realty?• Short Sale Vs. Foreclosure• Why walking away is not the answer• Loss mitigation tools for delinquent mortgages

www.renohelp.orgCall : 775-525-1205

Page 2: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

What separates Marshall Realty from the rest is our resources and contacts. We have developed relationships with Consumer Credit Affiliates, The Bank of America Reno help center, Wells Fargo Executive Offices for Loss Mitigation, Senator Reid's Foreclosure Prevention Taskforce, among others.

www.renohelp.orgCall : 775-525-1205

Page 3: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

• We have direct contacts with Fannie Mae, Freddie Mac, and HUD. • Our goal has been to become a total resource for homeowner's in the entire Washoe Valley. Our testimonial page highlights our success. • Let us put our resources and expertise to work for you.

www.renohelp.orgCall : 775-525-1205

Page 4: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

What is a short sale?• A short sale is when a home is sold for less than the amount owed to the lender or lenders. • The majority of homes in Nevada currently listed or recently sold have been in the form of a short sale.

www.renohelp.orgCall : 775-525-1205

Page 5: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Selling your home for less than what is owed is not an easy decision. However, if you are in a position where you are extremely upside downin your mortgage or facing a foreclosure, a short sale may be an option to consider.

Benefits of a short sale

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Page 6: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Benefits of a short sale often include• Less damage to your credit than a foreclosure. A short sale is not reported on your credit history. A foreclosure is reported and stays on your credit for up to 10 years.• A homeowner who successfully negotiates a short sale may be considered for a Fannie Mae backed mortgage after only 2 years. • A foreclosure makes the homeowner ineligible for a minimum of 5 years.• Lenders may consider the sale price as “paid in full” forgiving the deficiency.• You can move forward to a brighter financial future in considerably shorter time.

www.renohelp.orgCall : 775-525-1205

Page 7: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Why choose Marshall Realty?• By working with Marshall Realty you will benefit from the experience of over 4 years in successful short sales. Longer than any other agent in the Washoe Valley.• We are familiar with the short sale requirements of each lender. • Your calls will be answered! You will be kept up to date every step of the way.• Your property is listed in MLS and available to all interested buyers.• You will not have a sign advertising it as a "Short Sale" or "Pre-foreclosure".• You never pay a fee. Lenders pay the commission from the proceeds of the sale.

www.renohelp.orgCall : 775-525-1205

Page 8: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Short Sale Vs. Foreclosure

www.renohelp.orgCall : 775-525-1205

Page 9: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 1

Successful Short Sale

Future Fannie Mae Loan- Primary Residence 1

A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period of 5years.

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae- backed mortgage after only 2 years.

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Page 10: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 2

Successful Short Sale

Future Fannie Mae Loan- Non-Primary2

An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae-backed investment mortgage for a period of 7 years.

There is no similar declaration or question regarding a short sale.

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Page 11: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 3

Successful Short Sale

Credit Score

• Score may be lowered anywhere from 250 to more than 300 points. • Typically will affect a credit score for over 3 years.

• Only late payments on a mortgage will show, and after sale, mortgage is normally reported as 'paid as agreed', 'paid as negotiated', or 'settled'. • This can lower the score as little as 50 points if all of the other payments are being made. • A shore sale's effect can be as brief as 12 to 18 months.

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Page 12: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 4

Successful Short Sale

Credit History

Foreclosure will remain as a public record permanently, and on a person's credit history for 10 years or more.

• A short sale is not reported on a credit history. • There is no specific reporting item for 'short sale'. • The loan is typically reported 'paid in full, settled'.

www.renohelp.orgCall : 775-525-1205

Page 13: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 5

Successful Short Sale

Security Clearance

• Foreclosure is the most challenging issue against a security clearance outside a serious misdemeanor or felony conviction. • If a client has a foreclosure and is a police officer, in the military, in the CIA, security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated.

On its own, a short sale does not challenge most security clearances.

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Page 14: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 6

Successful Short Sale

Current Employment

• Employers have the right and are actively checking the credit of all employees who are in sensitive positions. • In many cases, a foreclosure is reason for immediate reassignment or termination.

A short sale is not reported on a credit report and therefore not a challenge to employment.

www.renohelp.orgCall : 775-525-1205

Page 15: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 7

Successful Short Sale

Future Employment

• Many employers are requiring credit checks on all job applicants. • A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.

A short sale is not reported on a credit report and is therefore not a challenge to future employment.

www.renohelp.orgCall : 775-525-1205

Page 16: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 8

Successful Short Sale

Deficiency Judgment (Not Applicable in California)

In 100% of foreclosures (exceptin those states where there isno deficiency), the bank has theright to pursue a deficiencyjudgment.

In some successful short sales, it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.

www.renohelp.orgCall : 775-525-1205

Page 17: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Foreclosure

Issue 9

Successful Short Sale

Deficiency Judgment (amount)

In a properly managed short sale, thehome is sold at a price that should beclose to market value, and in almostall cases will be better than an REO sale resulting in a lower deficiency.

• In a foreclosure, the home will have to go through an REO process it does not sell at auction. • In most cases this will result in a lower sales price and longer time to sale in a declining market. • This will result in a higher possible deficiency judgment.

www.renohelp.orgCall : 775-525-1205

Page 18: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Why walking away is not the answer• Recently, there have been reports claiming that a "strategic default" can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. • While this idea has spread rapidly, the truth is that a default is never an easy road to choose, and rarely is it ever strategic.

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Page 19: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Why walking away is not the answer (cont.)• In fact, defaulting on your mortgage can be incredibly dangerous and irresponsible when handling the financial future of you and your family. • Unfortunately, the ramifications of a "strategic default" are rarely-if ever-explained, leaving many homeowners stranded on an island of misinformation.

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Page 20: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Why walking away is not the answer (cont.)If this is your situation, first understand that you are not alone. Millions of homeowners nationwide are in similar circumstances. The only difference between them and you is that you're looking for answers ...contacting Marshall Realty is a great place to start! The best part is, we never charge our clients a fee, ever!

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Page 21: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Allows you to make a regular full payment plus a portion of the delinquency each month over a period of months to cure the delinquency.

Conventional Mortgage - Repayment Plan

VA Mortgage - Repayment Plan

Allows you to make a regular full payment plus a portion of the delinquency each month over a period of months to cure the delinquency.

Allows you to make a regular full payment plus a portion of the delinquency each month over a period of months to cure the delinquency.

FHA Mortgage - Repayment Plan

Loss mitigation tools for delinquent mortgages

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Page 22: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

The delinquency is added to your loan balance in order to bring your loan current. The interest rate and terms may be modified.

Conventional Mortgage - Loan Modification

VA Mortgage - Loan Modification

The delinquency amount is added to your principal balance, which may result in fully reinstating your loan. A change in interest rate and/or the loan term may also be considered. Late, foreclosure, attorney fees may be waived.

A lender may consider adding the delinquent amount to your principal balance, which may reinstate your loan. A change in interest rate and/or the loan term may also be considered.

FHA Mortgage - Loan Modification

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Page 23: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Allows the repayment of part of the delinquency each month along with your regular mortgage payment. If you are temporarily unable to meet your mortgage payment, suspended or partial payments may be accepted until you have the ability to resume the payment schedule.

Conventional Mortgage - Forbearance

VA Mortgage - Forbearance/Repayment Schedule

Suspended or partial payments for a short period of time followed by repayment plan, modification, reinstatement, or full pay off. You must prove your hardship is temporary and will resume ability to pay mortgage.

Suspended or partial payments for a short period of time followed by repayment plan, modification, reinstatement, or full pay off. You must prove your hardship is temporary and will resume ability to pay mortgage.

FHA Mortgage - Forbearance

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Page 24: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

If you have the ability to make mortgage payments or will have the ability in the future, but your lender has decided it cannot extend further forbearance or a repayment plan, VA may buy a loan from the lender and take over the service.

Conventional Mortgage - Short Sale/Pre foreclosure sale

VA Mortgage - Refunding

Your lender may work with you to obtain a one-time payment from the FHA-Insurance Fund to reinstate your loan. You must be at least 4 months delinquent and able to make full mortgage payments. You will execute a promissory note & subordinate mortgage payable to HUD. This note carries no interest & is payable at time of home sale or refinance.

Allows the borrower to sell the house and use the proceeds to satisfy the mortgage debt even if the proceeds are less than the amount owed.

FHA Mortgage - Partial Claim

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Page 25: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

If there are no liens on the property and VA agrees, you will sign legal documents to make VA the owner of your property. VA will have to pay your lender a claim for the difference between the value of your home and the mortgage balance. If a deed is accepted, you may be released from further liability or asked to repay the government for all or part of the claim VA paid.

Conventional Mortgage - Deed-in-lieu of foreclosure

VA Mortgage – Deed-in-lieu of foreclosure

Allows the borrower to sell the house and use the proceeds to satisfy the mortgage debt even if the proceeds are less than the amount owed.

If you are not eligible or failed at other Loss Mitigation Tools, including a Short Sale, you could voluntarily deed or surrender your property to HUD in exchange for a release from all obligations under the mortgage.

FHA Mortgage - Short Sale/Pre foreclosure sale

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Page 26: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

Conventional Mortgage

If you are not eligible or failed at other Loss Mitigation Tools, including a Short Sale, you could voluntarily deed or surrender your property to HUD in exchange for a release from all obligations under the mortgage. There must be no liens on the property.

Lender participation is voluntary. These programs are subject to lender/service approval. Lenders are not mandated to provide these options. Each lender has qualifying criteria a borrower must meet before they will consider offering these Loss Mitigation Tools. Please contact your lender for a workout packet to apply for delinquency.

FHA Mortgage - Short Sale/Pre foreclosure sale

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Page 27: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

• Trying to figure out the best solution to your problem can be very frustrating and overwhelming. • We offer resources completely FREE! • Don't wait until it's too late and more importantly DO NOT PAY anyone to help you and your family. • Let us help you find the best resource for you.

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Page 28: What is a Short Sale - Marshall Carrasco Short Sale Expert Reno NV

9740 S. McCarran Blvd #103, Reno, NV 89523

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