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Ed Leavy

Sales Associate

Short Sale Option

How RE/MAX First Coast of Georgia can help you...                                                   


The Home Affordable Foreclosure Alternatives (HAFA) Program is the government?s newest tool to help homeowners avoid foreclosure. HAFA provides incentives for lenders and homeowners to carry out a short sale or deed-in-lieu of foreclosure.

As a homeowner, I can help you list your home; I am someone who understands your unique situation and I will utilize my short sale expertise to have a quick as possible resolution. I utilizes a company, PMH Financial, to assist you with your short sales but they are also a company that helps home sellers, to educate and answer any questions homeowners have, whether they list their property or not. 

RE/MAX First Coast of Georgia can assist you through the navigation of the lender?s backlog of cases, ensuring you are submitting the proper information for the optimal timeline.  Ed Leavy can also provide those lenders with an independent value to show them that your offer and closing costs associated with the sale are acceptable and reasonable.

Homeowner Short Sale Information

No one wants to sell their home when that was not in the plan for the property. Homeowners should consider listing their property for sale when it is initially realized that a financial situation will not correct itself within a very short period of time. This could be due to unemployment, divorce, extended illness or death. If your lender?s loss mitigation unit was unable to assist you in keeping your home with another loss mitigation option such as a loan modification; it is now time to attempt the sale of the property to avoid a foreclosure sale that can devastate credit and even cause embarrassment with friends and family since this is a publicly published event in your area.


If you already realize that the sale of the property will not generate enough money to pay off your existing mortgage debt, you then only have three options;

    * One ? sell the property and pay the difference in cash at the closing.
    * Two ? do nothing and allow the property go to foreclosure. The lender will then go
      through the process of auctioning off the property to a bidder at the foreclosure sale.
      If no one buys it at the auction, the lender will then proceed to eviction so they can
      sell the property due to non-payment of the debt.
    * Three ? sell the property and pursue the short sale approval
through your lender.

A short sale is an agreement in which your mortgage lender agrees to accept a payoff on the loan for less than the balance. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property following a foreclosure. This process also aids in maintaining home values in the community the property is located and helps the homeowner maintain a better level of credit compared to a foreclosure. In most instances, homeowners considering a short sale must meet specific criteria to qualify: you must be behind in your mortgage payments, provide evidence of economic hardship, and have little or no equity in the property.

short sale is not a typical real estate transaction. Most real estate transactions involve the home seller and their real estate agent, the buyer and their lender, and their real estate agent. In a short sale situation, all of those parties in addition to the seller''''''''s loan servicer, a housing counselor, any junior lien holders, mortgage investors, and insurers may be involved too.


Let?s say the property is worth $100,000 and has $105,000 worth of mortgages and lien against it. How much equity is in the property? None. Minus $5,000, actually, if the loan is recourse, that is, the lender can go after the borrower personally (collect the remaining money from the other assets of the borrower like cars, second home, garnish wages) for the amount remaining after a foreclosure sale. That amount is called a ?deficiency? and the lender sues for a deficiency judgment to get the right to collect it. June 23 2011; Fannie Mae VP Maecel Bryar stated on a national news show (CDPE Web news)that they will not pursue a deficiency judgement on an approved short sale.


With so many parties involved in a short sale, the process can be difficult to complete without a qualified REALTOR? to help guide you and act as a liaison between all of the parties involved. You will want the advice and expertise of a REALTOR? who has your best interests in mind and will expedite the short sale transaction. It is essential to have a REALTOR? who won''''''''t allow you to miss a detail that could delay closing the transaction in a timely manner and to the specifics required by all parties involved. A qualified REALTOR? with experience in short sales will also be able to find a buyer to complete the transaction. Homeowners agreeing to a short sale should also consult a tax expert and obtain the services of an attorney to help protect themselves from any future claims by the lender.

    It is possible to reduce the amount it costs charged to a property owner by selling a property by owner. This is never a recommended course of action due to all the expertise for selling property that is required. Every area in the country has different requirements that must be met when selling a home. Unless your buyer is a real estate professional themselves, you will always have a faster and better result using the right real estate professional to help you find a buyer.

One note of warning, beware of any company claiming that they guarantee they can stop any foreclosure no matter what you owe. The Federal Trade Commission recently compiled a list of warning signs that a "foreclosure fixer" company may be a scheme. Those warnings include any company that requires you to pay for services upfront, tells you to send mortgage payments to it directly, or asks you to turn over the property deed, or tells you to avoid contacting your lender directly.


If you believe that you are a victim of a scam, you should contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or visit their Complaint Assistant https://www.ftccomplaintassistant.gov



RE/MAX First Coast of Georgia CAN HELP YOU... the homeowner. If you would like RE/MAX First Coast of Georgia to help you Call Today 912-552-3436 Ask for Ed Leavy