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FORECLOSURE RESCUE
Click here for a complimentary market analysis of your home.
Foreclosure Rescue section of our web site will let you know about new services George Saab and his Team now provide to stop
foreclosure. As you know the housing market is in crisis. We cannot avoid hearing it on the
news everyday. Foreclosure rates are skyrocketing, the federal government is spending billions,
and house values are declining. In response to the crisis, our team has taken the steps to
become the Washington D.C. Area's Short Sale Specialists. A short sale is a way for homeowners,
maybe even your friends and neighbors, to sell their home for less than they owe.
If you were forced to walk through one of two doors (a life changing experience)
and one of them led you to foreclosure disaster and the other led
you to foreclosure freedom... Wouldn't you like to know which door
led to freedom? Call us today! We will take you by hand through
the correct door.
Unfortunately, there are thousands of people every month who are facing this exact
situation. That's why we want to arm you with the knowledge to make the best decisions
about your property. Once you know all of your options, you can make wise and informed
decisions that will impact the rest of your life.
Our goal is to put power back in your hands and getting you back in financial
control. A brief phone conversation with us may actually be life-changing.
We can provide references from others who benefited from our expertise in dealing
with: Foreclosure, Bankruptcy, Relocation, Little or No Equity, and many other complicated
real estate problems. Know the facts and understand your options. Don't wait
another minute to call us! All consultations are completely confidential
and absolutely free. We look forward to assist you.
To Find out more read our "Why Saab?" section.
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Are you falling behind on your mortgage payments?
Have you received a Notice Of Default?
We will sell your home and save your credit.
Do you have a few mortgages and negative equity?
At SAAB we still be able to sell your house and
pull you out of the position you are in.
Need to sell your home and WALK AWAY DEBT FREE?
We will take care of that with the Short Sale.
Time is running out!
Many agents don't have the training and experience to help - but we do!
Call us TODAY at (703) 288-4877!
You may qualify for a Short Sale!*
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Is Foreclosure the only option? May be not...
Do not let the bank take Your Home!
Today we are in a buyer's market.... Many people paid more for their homes in recent
years than they can be sold for now. The market will adjust over the next 3-5 years,
but it will be too late for many of us...
At SAAB we can take care of that with the SHORT SALE. Let George Saab and his Team
to pull you out of the difficult position you are in. Why us? George Saab
is a Real Estate Broker with 22 years of experience in Real Estate Business and
Mortgage Lending combined. George Saab have lived in the Washington Metropolitan
area for over 30 years. Our REO Team and I are effective Short Sale negotiators,
because we use our established relationships with numerous banks to solve your situation.
In 2008 we have helped banks to sell over 400 distressed/foreclosed listings in
our service area. We will negotiate with your current lenders so you can sell
the property and walk away debt free.
Find out more about "Foreclosure VS Short Sale"
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Buying a Short Sale?
Search the Entire Washington D.C Area.
Are you looking for a great deal in the Washington DC Metropolitan Area? Short sales
offer a fantastic buying opportunity on our market today. Priced Below Market Value!
Make HUGE Real Estate Investing Profits!
Are you 1st Time Home-Buyer?
Signed into law has been an $8,000 tax credit available for First
Time Home-Buyers! Qualifying taxpayers who buy a home this year before Dec. 1 st
can get up to $8,000, or $4,000 for married filing separately.
more...>>
Check what should you know before buying a Short Sale and Search the Entire Washington DC area.
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Search BANK OWNED / FORECLOSURES
Immediate Liquidation!
Dear Buyers and Investors,
Search www.SaabRealtors.com to find the best deals! Check the Liquidation Prices
on many homes. All Bank Owned / Foreclosures in the Washington D.C. Metropolitan
Area are here! The Lenders that own theses homes MUST SELL them
immediately. To view our company's listings
click here. Do not delay and submit fast your best offer! When search, we
encourage you to Create and Save Your own search and subscribe for dynamic alert,
so you will be notified instantly when property with your search criteria will be
just listed on the market.
To search Bank Owned and all other properties for sale and for rent for 24 x 7 absolutely
FREE with NO obligations in real time click here.
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The Short Sale Process
Dear Homeowner,
We understand that you are facing some tough decisions about your financial future
and that includes the decision to sell your home. Due to your current financial
situation and /or the market conditions in your area, you need to sell for less
than you owe. To sell your home, you need a short sale. To find out more about:
What is a Short Sale?
What are the Benefits of a Short Sale?
Who Qualifies For a Short Sale?
Knowing Your Options. Foreclosure VS Short Sale
What Will Be Required of You?
What Should You Expect in the Process?
Why Working With George Saab Team is a Great Decision?
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Frequently Asked Questions
How much time do I have? Do I have to start now?
Do I need to be in default to qualify for a short sale?
What will happen If I do nothing?
Will I get any money when the property sells?
What if I file bankruptcy?
What is better on my credit: Foreclosure or Short Sale?
Will I be liable for my lender's financial loss?
What other advice should I seek?
What about the federal government bailout programs?
Find out more - read our F.A.Q.section
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SAAB, REALTORS'
Video Newsletter
click here to view and subscribe
Press
Housing Bailout News will affect millions of homeowners. "New administration endorses Loan Modification as a part of Housing Plan"...
Feb 18th, 2009 - Phoenix, AZ
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation.
All the Top News, selected by SAAB, REALTORS posted on our "Breaking News" section.
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All Real Estate Top News
Visit Breaking News Section to read more...
or check All Top Real Estate News Selected by SAAB, REALTORS.
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Click here for a complimentary market analysis of your home.
The Short Sale Process
Click here for a complimentary market analysis of your home.
Dear Homeowner,
We understand that you are facing some tough decisions about your financial future
and that includes the decision to sell your home. Due to your current financial
situation and /or the market conditions in your area, you need to sell for less
than you owe. To sell your home, you need a short sale. As a Short Sale Specialist,
George Saab and His Team will be able to assist you through the process. Short sales
can be stressful and a time-consuming process. But in many cases they are necessary
in order to get you out from under mortgage debt, especially with property values
are declining. By performing a short sale, you will be able to take a large bite
out of the money you owe to your mortgage company.
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What is a Short Sale?
Glossary
U.S. Securities and Exchange Commission
What are the Benefits of a Short Sale?
Who Qualifies For a Short Sale?
3 Most Commonly Asked Questions
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What is a Short Sale?
A Short Sale is when your mortgage lender(s) and/or lien holder(s) agree to take
less than is owed so that you can sell your home.
A Short Sale is a sales transaction in which the seller's mortgage lender agrees
to accept a payoff of less than the balance due on the loan.
According to Distressed Property Institute handbook:
A homeowner is 'short' when:
When a borrower owns an amount on his property that when combined with closing costs
and commission is higher than current market value.
A short sale occurs when:
A negotiation is entered into with the homeowner's mortgage company or companies
to accept less than the full balance of the loan at closing. A buyer closes on the
property and the property is 'sold short."
Your home may be over-leveraged or “underwater” You may behind on payments and
cannot sell for high enough to cover what you owe plus other required fees to close.
Lenders created short sales as a foreclosure alternative Lenders would rather allow
you to short sale versus foreclosing. Foreclosing on properties costs lenders money.
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The Benefits of Short Sale?
- NO Foreclosure on Credit;
- Generally NO money needed to close;
- NO repairs necessary – Sell AS-IS;
- NO taxable event for those that qualify;
- NO deficiency judgment if negotiated;
- Out from underneath your mortgage debt;
- NO Need to file bankruptcy;
- A positive step towards home ownership in only 24 months.
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Who Qualifies? And How?
Most homeowners that are facing foreclosure or who are in a ‘must sell’ situation, but cannot sell for the amount owed, do qualify.
However, each Lender and Loan Type has a different set of requirements. Please
be sure to tell us: Your Lender and Loan Type This information can be found on a
current mortgage statement or the settlement papers from your closing. If you do
not know the loan type and lender, be sure to give us authorization to call your
lender.
In General, to Qualify you must simply:
- Be experiencing a True Financial Hardship
- Be in default on your mortgage
- Facing imminent default while in a ‘Must Sell’ situation
- Have NO Equity in your home
- Have NO available assets
- Have a lender and loan type with a clearly defined short sale process
- Be in a market where you cannot sell the home for enough to cover your debt and all other associated closing fees.
You need help to avoid foreclosure!
The mortgage companies have programs available if you qualify so that you can stay
in your home and renegotiate the terms of your mortgage. We can represent you in
this process. A short sale is a special sales transaction that allows you to sell
your home - even when your mortgage debt is higher than the value of your home -
if you qualify. We need to meet so that we can evaluate your options and take the
necessary actions right away before the bank makes the decision for you and your
credit is ruined. And under new legislation, you may be able to buy another home
in two years.* The problem won't go away, and taking the wrong action will only
waste more time and could run the clock out.
If you qualify, a short sale could help you:
Avoid Foreclosure
Avoid Bankruptcy
Protect your credit report from the “foreclosure” ding
Be free of financial and emotional burdens
Avoid the humiliation of a public foreclosure
Be eligible to buy another house many years sooner than a foreclosure
Best of all, my commission will be paid by the bank, so you won’t have any out-of-pocket expense!
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3 Most Commonly Asked Questions:
How much is your service going to cost me?
NOT ONE RED CENT! The banks pay our commission! It’s a win-win-win situation for
all of us. The banks jump at taking a reasonable offer for the loan amount rather
than going through the entire foreclosure and losing a lot more, besides banks are
not in the real estate business…They’re in the money business. It’s a win situation
for you because you’re saved from an embarrassing public announcement, but most
of all you escape a damaging foreclosure stamp on your credit report for the next
7-10 years. In fact, many homeowners who team up with us go on to purchase new homes
in just 2-years after our service is completed. It’s a win situation for us because
you become part of our goal to provide an invaluable service giving homeowners a
positive alternative to losing to the battle of foreclosure, and in return we receive
a fee for our service.
Shall I consult with an attorney first?
We suggest an attorney representation to all who come in our office for a consultation.
Already have an attorney? Great! Have them give us a call, just remember, an attorney
is “NOT” an expert at foreclosure….. “WE ARE”. Please note that attorney representation
is optional and is not required for our service.
Does bankruptcy save my home for foreclosure?
This is a great question and is often misunderstood by most homeowners. Filing for
bankruptcy is “ONLY” a temporary fix! Yes, it stops the foreclosure process cold,
however when the meeting of the creditors takes place you better believe your lender
will be there to plead their case and 9 out of 10 times the judge will have the
home lifted from the bankruptcy and the foreclosure process will resume without
question. Not only will you have a bankruptcy on your credit but you will still
lose your home to foreclosure. Now purchasing a new home just jumped from 2-years
to almost 10.
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Glossary
A sale of a house in which the proceeds fall short of what the owner still owes
on the mortgage. Many lenders will agree to accept the proceeds of a short sale
and forgive the rest of what is owed on the mortgage when the owner cannot make
the mortgage payments. By accepting a short sale, the lender can avoid a lengthy
and costly foreclosure, and the owner is able to pay off the loan for less than
what he owes. See also deed in lieu (of foreclosure).
mortgage
A loan in which the borrower puts up the title to real estate as security (collateral)
for a loan. If the borrower doesn't pay back the debt on time, the lender can foreclose
on the real estate and have it sold to pay off the loan.
foreclosure
The forced sale of real estate to pay off a loan on which the owner of the property has defaulted.
deed in lieu (of foreclosure)
A means of escaping an overly burdensome mortgage. If a homeowner can't make the
mortgage payments and can't find a buyer for the house, many lenders will accept
ownership of the property in place of the money owed on the mortgage. Even if the
lender won't agree to accept the property, the homeowner can prepare a quitclaim
deed that unilaterally transfers the homeowner's property rights to the lender.
title
Evidence of ownership of real estate.
real estate
Land and the property permanently attached to it, such as buildings, houses, stationary
mobile homes, fences and trees. In legalese, real estate is also called real property.
real property
Another term for real estate. It includes land and things permanently attached to
the land, such as trees, buildings, and stationary mobile homes. Anything that is
not real property is termed personal property.
default
A failure to perform a legal duty. For example, a default on a mortgage or car loan
happens when you fail to make the loan payments on time, fail to maintain adequate
insurance or violate some other provision of the agreement. Default on a student
loan occurs when you fail to repay a loan according to the terms you agreed to when
you signed the promissory note, and the holder of your loan concludes that you do
not intend to repay.
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U.S. Securities and Exchange Commission
Short Sales
A short sale is generally the sale of a stock you do not own. Investors who sell
short believe the price of the stock will fall. If the price drops, you can buy
the stock at the lower price and make a profit. If the price of the stock rises
and you buy it back later at the higher price, you will incur a loss. When you sell
short, your brokerage firm loans you the stock. The stock you borrow comes from
either the firm’s own inventory, the margin account of another of the firm’s clients,
or another brokerage firm. As with buying stock on margin, you are subject to the
margin rules. Other fees and charges may apply. If the stock you borrow pays a dividend,
you must pay the dividend to the person or firm making the loan. For instructions
on how to obtain short interest for individual stocks, please see Section V.10 of
Key Points About Regulation SHO, which the staff of the Division of Market Regulation
prepared. This document describes short sales (including naked short sales), discusses
legal and compliance issues, answers frequently asked questions from investors,
and provides links to helpful resources. For additional information about selling
short, please read our publications entitled Selling Short Against the Box and Short
Sale Restrictions.
http://www.sec.gov/answers/shortsale.htm
Short Sale Restrictions
A short sale is generally a sale of a security by an investor who does not actually
own the stock. To deliver the security to the purchaser, the short seller will borrow
the security. The short seller later closes out the position by returning the security
to the lender, typically by purchasing securities on the open market. In general,
short selling is utilized to profit from an expected downward price movement, to
provide liquidity in response to buyer demand, or to hedge the risk of a long position
in the same or a related security. The SEC has traditionally held the belief that
protections against abusive short selling are important for issuer and investor
confidence and has enacted prophylactic rules designed to curb manipulative behavior.
For information on short sale restrictions — and short sales generally — please
read Key Points About Regulation SHO, which the staff of the Division of Market
Regulation prepared. This document describes short sales (including naked short
sales), discusses legal and compliance issues, and provides links to helpful resources.
If you scroll down to Section V, you’ll also find answers to the questions investors
most frequently ask about short sales. In addition, Rule 105 of Regulation M governs
short sales immediately prior to offerings where the sales are covered with offering
shares. Specifically, Rule 105 prevents persons from covering short sales with offering
securities purchased from an underwriter, broker, or dealer participating in the
offering if the short sale was effected during the Rule's restricted period, which
is typically five days prior to pricing and ending with pricing. Its aim is to promote
offering prices that are based upon open market prices determined by supply and
demand rather than artificial forces. In this way, the Rule safeguards the integrity
of the capital raising process.
http://www.sec.gov/answers/shortrestrict.htm
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Click here for a complimentary market analysis of your home.
Foreclosure VS Short Sale
Click here for a complimentary market analysis of your home.
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Knowing Your Options.
A Better Alternative.
A short sale if accepted by the lender is a much better alternative than foreclosure.
You will not have a damaging foreclosure mark on your credit, may not have to bring
any money to closing even if your home is “underwater,” may avoid bankruptcy, not
need to make any extensive repairs, and could qualify for another home in much less
time than if you allowed the bank to foreclose.
**If you are facing a scheduled foreclosure date, be sure to let your agent know.
Please also provide them with any paperwork sent to you regarding the foreclosure.
more...>>
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Issue
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Foreclosure
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Short Sale
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Future Fannie Mae Loan - Primary Residence
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A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years and then would be eligible.
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A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage only after 2 years and then will be able to purchasea property that is Fannie Mae backed investment.
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Future Fannie Mae Loan - Non Primary
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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 and then would be eligible.
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An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years and then will be
able to purchase a property that is a Fannie Mae backed investment. |
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Future Loan with any Mortgage Company
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On any future 1003 mortgage application, a prospective borrower will have to answer
"YES" to question C in Section VIII that asks “Have you had a property
foreclosed upon or given title or deed in lieu thereof in the last 7 years?”. This
answer will affect future interest rates for up to 7 years from foreclosure.
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There are no similar declarations or questions regarding a short sale on the mortgage
application and therefore would be no reason to disclose that information. |
| Credit Score |
Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. Credit scores are important to qualify for a loan in the future. |
Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other
payments are being made. A short sale’s affect can be a brief as 12 to 18 months
and your credit could be back to normal. |
| Credit History |
Foreclosure will remain as a public record on a person’s credit history for 10 years or more and will higher chances for obtaining loans. |
There is no specific reporting item on a credit report for ‘short sale’. The loan is typically reported ‘paid in full, settled’. thus giving your credit report
a stronger value than a foreclosure would. |
| Security Clearances |
Having a foreclosure on your record is just under having a criminal record when it comes to security clearances. Employer’s that have high security clearance have
rights to dismiss employees with a foreclosure on their record. |
A Short Sale on its own does not challenge most security clearances. Officers in the military may be adversely affected by a short sale in certain cases.
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| Current Employment |
Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. Employer’s that have high security clearance have
rights to dismiss employees with a foreclosure on their record. |
A short sale is not reported as such on a credit report and is therefore not a challenge to employment and not needed to be disclosed. |
| Future Employment |
If future employers do credit checks a foreclosure is the worst strike to have on a credit report. |
A short sale is not reported on a credit report and is therefore not a challenge to employment and no need to be disclosed. |
| Deficiency Judgment
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In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.
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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. This happens more times than not.
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| Deficiency Judgment (amount) |
In a foreclosure the home will have to go through an REO process if 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.
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In a properly managed short sale the home is sold at a price that should be closer
to fair market value and in almost all cases will be better than an REO sale resulting
in a lower deficiency. Short sales homes are usually better taken care of will demand
a stronger value.
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Other Options.
Be sure you have explored other options by calling your lender to discuss your eligibility.
They will most likely mention that one option may be the short sale of your home.
Your lender allows this option to homeowners that qualify as an alternative to foreclosure.
Lenders do not like to foreclose. The process is costly for them. They would prefer
that you try to sell the home at fair market value even if that amount is less than
the pay-off. Foreclosing on the property will leave them with a property that may
take a long time to sell unless deeply discounted.
Please check our "Frequently Asked Questions" section to find out more. Even more
information under our "Breaking News" section...
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Click here for a complimentary market analysis of your home.
Frequently Asked Questions
Click here for a complimentary market analysis of your home.
- How much time do I have? Do I have to start now?
- It is best to begin a short sale when you realize you can no longer afford the
mortgage, so that your property can be marketed properly and you can receive a high
offer. The earlier you start, the higher our likelihood of success. Remember that
your lender requires a purchase offer to review your eligibility for a short sale
and it may take a few weeks to get a solid offer.
- Do I need to be in default to qualify for a short sale?
- NO, more and more lenders are considering short sale requests from homeowners
who are not in default. However, you must be experiencing a financial hardship that
points to imminent default if you are unable to sell.
- What will happen If I do nothing?
- If you do nothing and are not making your mortgage payments, your lender will
foreclose. You will have a foreclosure on your credit report, be liable for any
deficiency, and/or subject to a taxable event.
- Will I get any money when the property sells?
- NO, for the majority of loan types you are not allowed by your lender to receive
any proceeds from the sale of your home. If you have an FHA loan, you may qualify
for their pre-foreclosure sale program that does have a selling incentive.
- What if I file bankruptcy?
- Filing bankruptcy will not stop the foreclosure process, just delay it. The property
will eventually be discharged from bankruptcy protection and be back in the foreclosure
process where it was when bankruptcy was filed. For further bankruptcy information,
please seek the advice of legal counsel.
- What is better on my credit – Foreclosure or Short Sale?
- Please consult your own financial advisor or the credit bureaus directly for the
answer to this question. From experience only, we can say that foreclosure is much
more damaging to your credit. A short sale will most commonly be listed as “settled
debt” and is much less harmful to your credit.
- Will I be liable for my lender’s financial loss?
- Depending on your situation you may or may not receive a deficiency judgment or
taxable event. It is best to consult an attorney for advice regarding any debt liability.
Now, there have been recent changes in the law that reduce homeowner tax liability.
Find more information on IRS web site regarding The Mortgage Forgiveness Debt Relief
Act and Debt Cancellation. Most tax consequences have been done away with
for primary loans on primary residences. Regarding deficiencies – you can have your
agent request in the negotiations a full release of lien and that your lender consider
the debt settled or satisfied. The bank has the right to ask you to sign an unsecured
note or to ask you contribute money at the time of closing. Be sure your agent negotiates
the best outcome for you.
- What other advice should I seek?
- Be smart. Always seek professional advice from a qualified attorney and an accountant
specializing in Short Sales/Pre-Foreclosure Sales.
- What about the federal government bailout programs?
- To determine your eligibility, please visit www.FinancialStability.gov or www.treas.gov/initiatives/eesa/
- Why do lenders or banks accept discounts?
- A Lender or bank takes a discount or agrees a short sale because it saves them
money. It gets bad debt off their books so they can reinvest that money by giving
out another loan to a customer. On average a Lender loses between $30,000 to $80,000
on each property that they take back as a bank owned property. In many cases a short
sale is necessary in order to get you out from under your mortgage debt. By doing
a short sale, you will be able to take a large bite out of the money you owe to
your mortgage company, so that you are no longer liable for the entire amount.
- Will every lender or bank allow a short sale?
- The answer is no. The majority of the lenders do short sales however; there are
a select few that do not do short sales.
- How do I know what type of loan I have?
- Knowing what type of loan you have is crucial to the process. There are often
specific short sale requirements unique to each loan type. You can find this information
by looking at your mortgage statement, the settlement papers from when you originally
purchase the property, or by calling your lender.
- Will Lenders or Banks do short sales if the mortgage is current?
- Some Lenders will entertain taking a discount when a homeowner is current on their
mortgage however they typically require the property to be listed for sale by a
licensed real estate agent.
- How long do I need to be in default before I can start a short sale?
- This depends on the Lender. Some Lenders require a property to be 90 days in default
before they will entertain a short sale offer; other Lenders will entertain a short
sale even if it is not in default.
- Can the owner of the property also be the listing agent?
- Good Question! There is absolutely nothing wrong with that set up. The agent owner
or agent spouse is not a financial beneficiary of the short sale by virtue of her
commissions, therefore there is no conflict. BEWARE however. There is a small chance
that some Lenders could take issue with it and reduce the owner’s side of the commissions
accordingly.
- What is required to process a short sale?
- Every Lender or Bank has its own set of required information and some may even
have a set of paperwork specific to them. But, in general, most banks require at
least the following: A handwritten hardship letter, financial statements, 2 years
tax returns, 2 months bank statements, 2 months paystubs, and that you have the
property listed for sale at fair market value. Throughout the process additional
paperwork may be requested. So, be sure to keep everything handy.
- What is the process?
- The steps and process of a short sale can be broken into 9 main steps. The most
important parts of the process for you are to help in the beginning to gather the
paperwork required and to help list and sell your home. As your short sale is negotiated,
you will be provided regular updates throughout the process.
- How long does a typical short sale take?
- Depending on what state you are from, this answer will vary. For example in the
State of Connecticut a short sale typically takes between 2 to 4 months. The short
sale time-line is subject to your Lender or Bank. Many banks are overwhelmed right
now with short sale requests. However, most do have an understandable review process.
Unnecessary delays can be avoided by not sending incomplete short sale packages.
Incomplete offers are often passed over or rejected. Your file is then closed and
you would have to start over from the beginning. It is very important to be sure
you provide everything required by your Lender and requested by the person helping
you negotiate.
- Can 2nd Mortgages or junior liens be discounted?
- Yes, absolutely. In fact, if the first mortgage is being asked to accept a discount,
they will require that all other lien holders discount as well in order to give
short sale acceptance.
- Can IRS tax liens be negotiated?
- Yes, absolutely. Tax liens can be released from a property or reduced and paid
at closing. Please consult the appropriate tax professionals for more information.
- How will I know what is happening in the short sale process?
- If you provide an email address that you check daily, you will be given continuous
e-mail notification from "SAAB - Manage My Short Sale" online system
each time something is done to your file, new paperwork is needed, notes are posted,
or any progress is made.
- Do I need to call my Lender?
- No. You are not required to call your lender. However, in certain instances it
is often helpful to the process for you to call.
- What is an Authorization to Release?
- This gives the people negotiating on your behalf permission to talk with your
lien holder(s).
- A foreclosure sale date has been scheduled for my property. Can I still short
sale my property?
- Yes, absolutely. However, certain immediate steps may be necessary to get the
foreclosure date postponed. You need to quickly complete the package of required
forms, get your property listed right away, and cooperate wholly with your agent.
A 3-way call to your lender may also be necessary to speed up authorization. There
are no guarantees that there is enough time to get a postponement.
- Will the foreclosure process stop when we submit a short sale offer to the
lender?
- No. The foreclosure clock will continue to tick. Postponement requests can be
made if necessary. Your Lender will only postpone foreclosure proceedings if they
are certain a buyer will perform.
- When should a default property that needs a discount be listed?
-Immediately. The Lender typically will not stop or slow down a foreclosure unless
a property is listed for sale by a licensed real estate agent.
- Must a property in default be listed?
- Yes and no. Some Lenders require a property to be listed when they take a short
sale or short payoff. Ask the Foreclosing Lender, at the beginning of your short
sale, whether you need the property listed.
- I am not going to list the property that low…my neighbors’ house just sold
2 years ago for $50,000 more than that.
- We understand. However the market has changed and every property is different.
There has been a reduction in the average value of comparable homes in your area
and you must sell your home right away to avoid a possible foreclosure. To do this
requires that you list your home at a price that will sell. Understand that Buyers
will always look for the best deal. If your property is priced higher than competing
homes, Buyers will pass it by.
- I do not want to advertise the home as a short sale, pending foreclosure,
or any other negative ownership conditions.
- We understand. Depending on your circumstances it may not be necessary to advertise
your situation. However, you need to list the home at a price that is below what
you owe. That means that all offers you receive must be contingent upon approval
of a short sale. Most are an MLS (Multiple Listing Service) guideline requiring
that such contingencies be fully disclosed. The remarks must, at the very least,
include that the sale of the property is “subject to third party approval.”
- Will all offers be contingent?
- Yes. It is likely necessary to list your home for an amount that is less than
you owe on your mortgage and not enough to cover all other associated fees. To sell
requires short sale approval from your Lender or Bank. That makes all offers received
subject to your Lien Holder(s) approval of a short sale.
- I want my lender to consider the debt paid in full at closing. Can I include
this request in the contingency?
- Yes. However, not all lenders will honor such requests. If this is important to
you, be sure that a special stipulation clearly defining your request is included
in all purchase offers.
- Do we have to have a purchase offer to get short sale acceptance?
- Yes. Most lenders require that a short sale offer be submitted before they will
even accept a short sale package, order an appraisal, and make their review. They
typically will not spend the time and resources to review your situation unless
they know that a buyer will perform.
- How will the short sale of my home affect the property values of my neighbors?
- Should your neighbors have their property appraised in the next few months, their
appraiser will use recently sold comparables to determine value. Appraisers generally
do not include any ‘distressed’ sales, like the sale of your home, in their evaluation.
In the long run the average property values in your neighborhood will not be damaged
by the short sale of your home as much as they would if the property became bank-owned.
Vacant foreclosure listings that sit for long days on market and then sell at heavily
discounted prices are much more damaging to neighborhood home values.
- I cannot afford to make any repairs…
- When you are listing your property make sure your real estate agent adds the remarks
“home to be sold AS-IS”. By doing this, Buyers will be aware that you cannot or
will not make any improvements on the property. Be sure that your agent clearly
expresses this to the Selling Agent and protects you in negotiations.
- Can an immediate family member buy the home and I stay living here?
- Typically not. The foreclosing lender will not allow anyone to purchase the home
through which you could become a direct beneficiary of the property and potentially
re-sale for a profit. Furthermore, by allowing you the privilege of a short sale
you are required to relinquish all use and benefit associated with the property.
- My situation has changed and I can afford the monthly payments. Do I have
other options?
- Yes. Be sure to research your options. Your agent may be able to assist you further.
- My situation has changed and I am making enough money to rent but not enough
to pay my full mortgage, but I still need to do a short sale to sell my property.
Should I save the extra money?
- Yes, absolutely. You will need money for moving expenses. Also, in some rare instances
you can offer a good faith payment to your lender to encourage them to approve your
short sale.
- Can I make any money on the sale of my property?
- A homeowner cannot accept money from the sale of their home if a Lender accepts
a short payoff or a short sale. However, there are exceptions to this statement;
for example an FHA (Federal Housing Authority) insured loan will allow a homeowner
to receive $1000.00 when taking a short payoff.
- Will I need to bring money to closing?
- In most instances you will not. A short sale is designed to assist the homeowner.
All items due and payable at closing are meant to come from the Buyer’s funds. You
will generally not have any out-of pocket costs to pay real estate commissions,
closing costs, or any other items due and payable at closing.
- Do I have to pay any processing fees or real estate commissions if the short
sale is not successful?
- If a ready, willing and able buyer is not found and the Foreclosing Lender does
not accept “an acceptable offer” then there will be no expenses due from the seller/homeowner.
Make sure your real estate agent disclosed that the sale is “subject to lien holder(s)
approval or 3rd party approval” so that you are protected.
- I may file bankruptcy. Will this affect the short sale?
- Yes. If you file for bankruptcy protection you Lender or Bank will be unable to
discuss the terms of your short sale until the bankruptcy is released or discharged.
A bankruptcy puts an “automatic stay” on any credit/debt collections which include
negotiating a short-pay of your mortgage(s). Any pending foreclosure sale dates
will be postponed as foreclosure is also a credit collection. Be sure that you inform
your agent immediately upon making this decision. If you choose to file, please
provide your agent with any paperwork involving the property that you receive from
the Lender of bankruptcy trustee. For further information, please consult with a
bankruptcy attorney.
- What happens if the Bank or Lender counters the current offer?
- The Buyer will need to either increase their offer to meet that number or your
agent will need to find another buyer that meets your Lender’s requirements.
- Will filing bankruptcy STOP foreclosure?
- No. Filing bankruptcy will not stop the foreclosure process, just delay it. The
property will eventually be out of bankruptcy protection and be back in the foreclosure
process where it was when bankruptcy was filed. For further bankruptcy information,
please seek the advice of legal counsel.
- How does a bankruptcy affect my credit?
- Bankruptcy will stay in your credit reporting agency files for ten years. Now,
declaring bankruptcy doesn't necessarily mean that the door to future credit will
be forever closed to you. If you take the proper steps after declaring bankruptcy
and also manage your credit responsibly, you can rebuild an improved credit reputation
in a few years. Please consult a credit counselor or a major credit bureau for more
information.
- How many years after filing bankruptcy can I buy a house?
- You will not have to wait 10 years to be considered for a home loan. However,
do expect to wait at least five years and only then will a lender consider your
loan application if you have stayed current on your bills after the bankruptcy.
- How many years after a successful short sale can I buy a house?
- There are new loan programs designed to help people who have recently had to short
sale their home. You can apply for a home loan in as little as two years provided
you have maintained your credit with good payment history, kept your debt-to-income
ration within lending guidelines, and have verifiable income.
- If I let the bank foreclose on my house, how long until I can purchase another
property?
- Unfortunately, there is no specific answer for it except to say that it could
be a considerable amount of time (more than the 2 years on a successful short sale).
Most lenders view your financial history as an indicator of what you will likely
do in the future. If you missed several months of mortgage payments leading up to
your foreclosure, then a lender will see you as a likely candidate to default on
a future loan -- in other words, you are a big risk.
- Will I receive a 1099 if my mortgage lender takes a discount?
- Yes it is an IRS code. The IRS code states that “a reduction of debt is a taxable
event.” However, the Government has passed the Mortgage Debt Forgiveness Act. It
states that for a certain period of time, some homeowners with primary loans on
primary residences may be exempt from receiving a 1099. Please click here for more information or consult
a local tax attorney in your area for any changes or updates in reference to this
Bill.
- This is an investment property, not a primary residence. In this situation,
will the reduction of debt be a taxable event?
- Yes it is an IRS code. Since the property is not a primary residence, you may
not be eligible for an exemption. Please see the answer to the previous question.
- Can I do a short sale on more than one property?
- Yes. You may short sale more than one property.
- Someone told me that I can file as “insolvent” if I receive a 1099 from my
lender?
- There are certain tax codes that enable someone in a financial hardship to be
exempt from any tax liability outside of the exemptions already allowed in the Mortgage
Debt Forgiveness Act. Please consult with a tax accountant for more information.
- Will the Bank or Lender pursue a deficiency judgment for the amount they lost.
- Your lender can pursue a deficiency. This does not mean that they will. You can
have your agent request in the negotiations a full release of lien and that your
lender(s) consider the debt settled or satisfied and paid in full. The bank could
ask you to sign an unsecured promissory note or to ask you contribute money at the
time of closing. Be sure your agent negotiates the best outcome for you.
- What if my lender requests a promissory note or money at closing?
- Your lender can make such requests. Whether or not you choose to agree must be
a personal decision based upon your financial situation. Keep in mind that any amount
requested by your Lender or Bank will likely be much less than they could potentially
pursue from you as a deficiency judgment if the property were foreclosed upon.
- Will I need an accountant?
- We always recommend that everyone in your situation seek the advice of an accountant
or other tax professional.
- Do I need an attorney to represent me?
- It is always important to seek legal counsel when making these types of decisions.
- I am behind on property taxes…
- These can be negotiated into the buyers offer and paid at closing. The payment
of taxes owed will simply be another reduction in the amount paid to your Lender.
Please note: if the Lender forecloses on your property, this is an expense they
will have to pay.
- I have not paid my HOA dues…
- We will negotiate a discount for all current and past HOA dues and have them paid
at closing from the funds to your Lender.
- Can I rent the property?
We cannot advise you to or not to rent the property. Keep in mind that if you are
not paying the mortgage payment you should not be profiting from rental payments.
If you chose to rent the property be sure to keep accurate expense records and put
all rents earned in escrow due to the fact that if you are not paying your mortgage
then those rental payments are owed to the foreclosing lender (s). Please consult
a real estate attorney before making this decision.
- The property is vacant. Do I have to keep the utilities on?
- No. However – it would be very helpful to your agent to leave all utilities on
for Buyer inspections. If it is winter time, be sure that you have winterized the
home properly before having utilities turned off.
- When should I move out?
- Different loan types have requirements regarding occupancy that could affect your
eligibility for a short sale. Before making the decision to move, be sure that you
have talked with your agent and your Lender about your plans.
- Can I take anything with me?
- Anything that you are going to take from the property needs to be clearly disclosed
to any Buyers viewing the property. Be sure to leave all fixtures that traditionally
remain in the sale of most homes, in working order.
- The property is in bad condition…should I do anything?
Extensive repairs or clean-up will be considered by potential buyers and reflected
in the list price. Should some clean-up be necessary to assist in the sale of the
home, your agent will make that request and work that out with you.
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Click here for a complimentary market analysis of your home.
Why Use George Saab and His Team?
Click here for a complimentary market analysis of your home.
Why We Are the Best to Work With?
- We Know this Market;
- We Know how to get your home SOLD;
- We have a team of Short Sale Experts;
- We are Ethically Obligated to Protect Your Interests.
George Saab is part of an industry leading team that successfully processes short
sales nationwide. George Saab and his Team are experienced, they stay current
with lender requirements, they will handle your short sale with expediency and care.
We need to meet so that we can evaluate your options and take the necessary actions
right away before the bank makes the decision for you and your credit is ruined.
And under new legislation, you may be able to buy another home in two years.*
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Real Estate Specialties
• Foreclosure Avoidance
• Debt Removal or Renegotiation
• Refinancing Homes in Foreclosure
• Sell your Property at full fair market value
• Title Issues
• Vacant Properties
• First Time Homebuyer Programs
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Company Overview:
SAAB, REALTORS® is the Washington DC Metropolitan Area premier real estate Solutions
Company located in Vienna, VA. The company specializes in solving complicated real
estate matters for people throughout the VA-MD and DC. Only in 2008, Saab REO Team
has helped numerous banks to sell 400 foreclosed houses and also helped many homeowners
to find solutions to their complicated real estate problems. Whether the homeowner
is looking to stay in the home or sell the home, we can provide a quick and easy
solution. Our company specializes in foreclosure avoidance and
is the foremost expert in this arena. We can help stop the foreclosure
and avoid bankruptcy in most scenarios. We work with each homeowner
individually and explore all possible options. SAAB, REALTORS® is proud to be part
of the area’s renaissance and we aspire to continue contributing to the economic
rejuvenation of VA-MD and DC cities and its neighborhoods. SAAB, REALTORS® is a member
of the Better Business Bureau and has been an integral part of the community for
years. Call us today and we can discuss your options!
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What Will Be Required of You? What Should You Expect? How We Can Help?
First and Foremost: Get Your Property Listed for Sale at fair market value.
WE CAN HELP:
To Sell your Property Today for Top Dollar
- We have qualified buyers looking for properties every single day.
- We get the banks to pay our commissions.
- We get the banks to pay for your closing costs.
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To Negotiate Debt with Existing Creditors
- Eliminate Existing Debt so You Can Relax.
- Negotiate Mortgage Debt even if you have no Equity.
- Avoid Bankruptcy.
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To Help Refinance your Existing Mortgage
- We Have Lenders who Will Refinance When Others Say “No”
- Call us even if you have been turned down previously
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To Work out a Payment Plan with your Existing Lender
- Can be Done in as little as 10 Days
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Here is How it Works
We assist you in gathering financial information to support your hardship, contact
your banks, and get in touch with the lawyers and mortgage insurance companies involved
in your case; we submit the offers(s) on your property, the financial information,
and other supporting documents to our contacts inside your mortgage servicer(s)
to negotiate the short sale of your property; we coordinate with the title companies,
attorneys, mortgage insurance companies, mortgage trustees, etc. for approval.
Your Lender will require copy of a Listing Agreement and showing
history. Your Lender wants to see that you have made a good effort to sell your
home. To request The Paperwork List. Click here.
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What to Expect from SAAB
The Process could take two to four months or longer to complete. Patience and Communication
are the keys to success.
- Home is Marketed;
- Purchase Offer Received;
- Short Sale Package Submitted;
- Bank Orders Appraisal;
- Negotiations;
- Property is Sold.
Help Us Sell Your Home
Short Sale Success will be easier if you assist with the process.
- Allow showings
- Keep the home show-able
- Stay available for your agent
- Stay in communication
- Cooperate with Marketing efforts
- If vacant: leave on utilities if possible
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Foreclosure? URGENT MESSAGE!
If you are scheduled for a foreclosure sale date, be sure that George Saab is immediately
aware and provide him with any foreclosure paperwork you have.
Things to Keep in Mind:
There is no guarantee that all offers will be accepted! Depending on the offer price
and other conditions, the lender may say ‘no’ to the first offer that is made on
your property.
The Short Sale Process can take anywhere from two to four months or longer depending
on the foreclosing lender.
You Lender or Bank will not allow you to receive any funds at closing. (FHA loans
have a pre-foreclosure sale program that allows a Seller incentive).
You may be liable for a taxable event or deficiency judgment for the difference
owed to your Lien holder(s). There are exemptions you may be eligible for. Ask your
agent for details.
You may be able to qualify for another home in 2 years provided you maintain your
credit and income.
You should always seek legal counsel and the advice of a tax professional.
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Click here for a complimentary market analysis of your home.
Buying a Short Sale - Search the Short Sale Property
Are you looking for a great deal in the Washington DC Metropolitan Area? Short sales
offer a fantastic buying opportunity on our market today. To find the house you
want, at the price you want - contact George Saab and his REO Team. We are qualified
short sale agents and we have been specifically trained on Short Sales from both:
the listing and buying sides. We specialize in Bank Owned and Short Sales
and we have performed hundreds of sales with the knowledge and expertise to find
you the house you want. At SAAB, we will guide you in finding the house of your
dreams and we will help you to determine a good prospect for purchasing with a high
probability of closing. To request a free consultation call us at (703) 288-4877.
For 24 x 7 Absolutely FREE with NO Obligations. Priced Below Market Value! Make
HUGE Real Estate Investing Profits!
What Should You Know Before Buying a Short Sale?
Check the Public Records.
Hire an Agent with Short Sale Experience.
Prepare the Seller for Lender Demands.
Submit Documentation and Purchase Offer to Lender.
Give the Lender a Deadline.
Reserve the Right to Conduct Inspections.
Do your research before making an offer to purchase. Your agent can find out who
is in title, whether a foreclosure notice has been filed and how much is owed to
the lender(s). This is important because it will help you to determine how much
to offer.
If there are two loans, you could have a problem. read more...
By Elizabeth Weintraub, About.com
F.A.Q.
- Do I need to be pre-qualified for a loan or show proof-of-funds?
- Yes. It is important to the Seller and to the Lender or Bank to see that you will
be able to perform. Offers on short sales that do not have either are not regarded
as serious and are many times passed rejected by Lenders or Banks.
- Are all offers contingent? To what?
- All offers made on short sale listings are contingent to Lien Holder(s) approval
of a short sale at terms and price acceptable to all parties. Be sure that a clearly
written contingency is included in your offer.
- What if the property incurs more damage when and if it's vacant?
- That can possibly happen. There is nothing we can do to prevent vandalism from
happening. If that occurs you can always withdraw your offer.
- I want the bank to pay for repairs...
- Unfortunately most banks will not pay for repairs since the property is to be
purchased "AS IS". What we recommend you do is before you submit your offer have
your contractor walk through the house and give you repair estimates. After that,
make your offer inclusive of those repairs.
- Can I put in an offer with financing, appraisal, or inspection contingencies?
- Yes, you can submit any offer that meets your needs. The Seller may accept, counter, or reject based upon their needs.
- Do I have to put up earnest money?
- Yes, you should put up earnest money. Lender and Banks like to see that Buyers are vested
to the purchase. However, you can make requests in your offer regarding the dates that
earnest money will be provided to the holder and deposited. It is in the best interests
of the Seller to require earnest money be deposited upon acceptance.
- If the bank rejects or counters, do I get my earnest money back?
- Yes. Any disputes over earnest money should be brought up with the Brokers involved.
First-Time Home Buyer Tax Credit
Tax Credit Provides Outstanding Opportunity for Home Buyers
A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence.
Video Interview: Tax Economist Answers Questions About the Home Buyer Credit Rob Dietz, Ph.D.,
director of tax issues for the National Association of Home Builders, discusses the
$8,000 first-time home buyer tax credit in this videotaped interview, for more information
click here
BREAKING NEWS: The $8,000 Tax Credit For Buying A New Home has been expanded!
Deal struck to expand home-buyer tax credit
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) -- Senators have struck a deal to extend a popular tax credit for home buyers beyond those buying their first house, Senate Majority Leader Harry Reid's office said Wednesday.
Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.
An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.
The credit for repeat buyers would be $6,500.
The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively.
Reid wants to attach the tax-credit measure to a bill that would extend unemployment benefits.
Robert Schroeder is a reporter for MarketWatch in Washington.
Extension of home buyers' credit has wide Senate support
By Dina ElBoghdady
Washington Post Staff Writer
Thursday, October 29, 2009
The Senate has reached a broad bipartisan consensus on extending a lucrative tax credit for first-time home buyers beyond the Nov. 30 deadline and expanding it to include some current homeowners, according to the Senate's Democratic leader.
Under the plan, people buying their first home would receive an $8,000 tax credit if they sign a contract by April 30 and close on it by June 30, according to people familiar with the proposal who spoke on the condition of anonymity because the timing had not been finalized. Homeowners shopping for a new primary residence would be eligible for a $6,500 tax credit if they owned their home for five consecutive years in the previous eight.
In both cases, individuals who earn more than $125,000 annually and couples who earn more than $250,000 would not be eligible, the office of Senate Majority Leader Harry M. Reid (D-Nev.) said on Wednesday...
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Tax Credit Provides Outstanding Opportunity for Home Buyers
A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing
a principal residence.
Video Interview: Tax Economist Answers Questions About the Home Buyer Credit Rob
Dietz, Ph.D., director of tax issues for the National Association of Home Builders,
discusses the $8,000 first-time home buyer tax credit in this videotaped interview,
for more information click here or visit our "Buy a Short
Sale" section.
Home Buyer Resources
Buying a home can be complicated, but fortunately a lot of expert advice is available
to help people navigate the experience. These online resources can help make the
process smoother.
First-Time
Home Buyer Tax Credit information from the IRS.
State Housing Agencies
with programs that provide short-term loans that may be used to fund a down payment
in conjunction with the tax credit.
Buying and Owning a Home Freddie Mac
Buying a Home
Department of Housing and Urban Development
The Home Buying Process Federal Housing Administration
FHA Loans Federal
Housing Administration
Homeownership
Resources Fannie Mae
Home Loan
Learning Center Mortgage Bankers Association
Move.com NAHB's official new
homes listing site
Home Loan Guaranty Services
Dept. of Veterans Affairs
State and Local
Home Buyer Assistance Programs
Housing Publications from the Federal Citizen Information
Center Most in PDF format
Consumer
Information from NAHB NAHB.org
Mortgage information from the Fed Federal Reserve Board
Home Financing Information from the FTC Federal Trade Commission
Making Home Affordable
Foreclosure prevention.
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