Short Sale Foreclosure Resource | Jim Ngo, Realtor - Ontario CA

Short Sales Foreclosure Resource - SFR®

• Mortgage stress and foreclosure threats can have you asking yourself, What can I do? As a Short Sale Specialist I can help you answer all your foreclosure questions and share with you the solutions that can help lead you out of the tough times and into peace of mind.
• Today’s real estate market is dynamic. Through short sales and foreclosure properties, sellers and buyers have additional opportunities to sell or purchase homes that are a great value.
• REALTORS® who have earned the SFR® certification have the necessary knowledge and tools to maneuver through short sale and foreclosure processes. With their comprehensive training, an SFR® has the ability to represent either the seller or buyer during the distressed property transaction and see it through.
• By understanding both sides of the distressed property transaction, an SFR® can anticipate the unique needs of clients while reducing any possible risk.

Sellers Who Think They Are Out Of Options

For many home sellers, foreclosure is a dark time in life. Through my work, I provide a much needed beacon of hope for my clients to lift out of such a crisis.

A REALTOR® with the SFR® certification can assist owners in understanding all their options.

• Explain the differences between a short sale and a foreclosure
• Recommend finance, tax, and legal specialists
• Suggest the seller to seek foreclosure avoidance assistance
• Alert homeowners of rescue scams

Buyers Who Are Open To Unique Opportunities

A REALTOR® with the SFR® certification can guide a buyer through the distressed property transaction.

Through the process, the SFR® will:

• Describe the differences between a short sale and a foreclosure
• Counsel buyers and reduce risk
• Guide the transaction from start to finish, including closing dates, inspection and appraisal expectations
• Prepare the buyer for expected time frames for lender approval

If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale - even if you don’t think you can (or haven’t been able to) sell your home.

As you know, the economic recession has left many home owners in a challenging financial position. Navigating the foreclosure process can prove stressful, and identifying alternatives to foreclosure is tricky.

Why use an SFR® ?

Members of the National Association of REALTORS® who have earned the Short Sales and Foreclosure Resource certification understand distressed property transactions, and everything that is included.
Working with an SFR® takes the stress out of distressed property transactions. We know that selling or buying a home in uncertain times can be scary, but we know how to make it happen. With unexpected opportunities everywhere, now is the time to sell or buy.

What is a short sale?

A short sale is one alternative to foreclosure. In a short sale, the home owner, real estate professional, and lender work together to form an agreement to sell a home at current market value; this agreed upon value is typically below the existing balance on the home owner’s mortgage. The property is able to transfer hands to a new owner, removing the overhead and risk from the lender’s portfolio and relieving the existing home owner of the burden of an underwater mortgage. The short sale process can prove challenging, stressful, and time consuming; it requires persistence and dedication. As a specialist in short sales and foreclosures, I am well-versed in the ins-and-outs of this process, and knowledgeable about the ways to move such transactions to completion. My work allows my clients to realize the freedom they desire from the unwanted weight of an underwater mortgage.
Depending on your situation, you may be required to make a financial contribution to receive a short sale.

A short sale is an option if:

• You are ineligible to refinance or modify your mortgage
• You are facing a long-term hardship
• You are behind on your mortgage payments
• You owe more on your home than it's worth
• You have not been able to sell your home at a price that covers what you still owe on your mortgage
• You can no longer afford your home and are ready or need to leave

Buyer Counseling

• Price - The price you offer to the seller of a short-sale property should reflect what’s termed fair market value. Fair market value is the price a buyer will pay and a seller will accept for a property under reasonable and ordinary conditions. We will provide with a comparative market analysis (CMA) that includes listings of comparable properties that have sold in the last 6 months as well as pending listings so that you can make an informed decision on how much to offer. However, please note that the listing price of the short-sale property may or may not reflect market value. Some short-sale properties are priced extremely aggressively with the goal of creating a bidding war, which may still backfire if the offer accepted by the seller is not approved by the lender.
• Length of Time for Approval - Each lender has its own protocol for approving short sales. We will need to allow a sufficient amount of time in the contract to assure both the seller and the seller’s lender that they are not wasting their time with your offer.
• Earnest Money - This deposit at time of contract indicates to the seller that you are acting in good faith and will attempt to satisfy all contingencies within your control within the time frames agreed to in the contract. It also shows the lender that your contract has a reasonable chance of closing.
• Home Inspection - Most short sales are sold “as is.” All buyers should complete a home inspection. The purpose of the home inspection is to determine, based upon condition, if the property is acceptable on the terms offered to the seller. You will want to complete a home inspection within a few days following the signing of the contract. You should not wait to complete the home inspection until after the contract is approved because you may possibly waste months in a contract that ends up failing because of property condition. If the inspection report alerts you to defects prior to the seller’s lender receiving the contract, you may be able to renegotiate terms with the seller based upon the defects.
• Mortgage Application - Frequently, seller’s lenders give limited time to close after approval and if you have not started your mortgage process, you will not be able to meet the required date for closing. Often, buyer’s lenders are reluctant to order the appraisal prior to approval by the seller’s lender. Although an appraisal will need to be updated if more than six months had passed, many buyers have found that ordering it and possibly paying for an update have saved them money since the appraisal done by their mortgage lender was a major influence on the seller’s lender when the seller’s lender expected to negotiate a higher sales price than what was offered. This is your decision and you need to instruct your lender on how you want to proceed.
• Attorney Modification - If there is an attorney modification clause in the contract being used you will want your attorney to look over the contract and make modifications within the time frame allotted—starting from the signing of the contract by you and the seller—not from the time the lender approves it. Whatever time frame is agreed to must be provided for both sides, and allowing a seller to get out of the contract after it is approved by the lender puts you in jeopardy. As a reminder, it is important that you choose an attorney who understands the short-sale process.