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Negotiated a 2nd lien owed $63,000
to $2,000 |
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Negotiated a 2nd lien owed
$212,000 to $5,000 |
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Over 10 sale date postponements
per month |
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Negotiated a 1st lien owed
$107,000 to $71,000 |
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Successfully negotiated the complete
removal of an IRS lien for
approximately $25,000 |
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Q & A Homeowner
Why would my Lender want to allow a Short Sale to help me?
The reason is simple; a short sale often has a better return on investment to the lender than a foreclosure. The average savings a lender sees from a short sale property compared with a foreclosure property is $14,000. Not only does the lender receive this savings, they are also paid on the loan 6 months earlier than in the foreclosure process. This allows them to collect and cash-out earlier than they would in a foreclosure. Plus, lenders spend a great deal of money with attorneys to complete the foreclosure process. Lenders created the short sale process as a foreclosure alternative for those reasons. The incentives to perform a short sale on your property are in place to motivate you to participate.
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How successful and experienced is your firm at resolving short sales?
National Short Sale Center was established in 2004, which means we have had more time than other companies to develop our processes and establish contacts within mortgage servicers.
Our combined experience of over 25 years in assisting homeowners in short-selling their properties is what makes us successful. Our success comes from the pride our employees have in their work. |
When should I start my National Short Sale?
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. We have negotiated short sales that have already gone to foreclosure sale. Contact Us to see
if you have enough time. |
What if my house has already been sold at auction?
If you live in Colorado, Michigan, or Minnesota we attempt to negotiate a short sale during the redemption period. Contact Us to discuss this further. |
What is the cost for you to conduct a short sale?
There is never an out of pocket fee to National Short Sale Center, and we only make money when we successfully short sale your property. Please call us toll free today to better understand your current situation and options at (800) 401-4638. |
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How long does it take for you to complete the case once we fill out the paperwork?
Typical cases are completed within three months. If you have a foreclosure sale date approaching we can potentially complete it sooner. |
Does National Short Sale Center buy my property?
No, we never take ownership of properties. There are people/companies who say they will conduct the short sale for you and buy your property. Watch out! This places a lot of potential liability on you. Our business model is to sell your property for as much as possible, which reduces the liability on you. Other people/companies will buy your property at a very low price so they can turn around and sell it for much more- what it is really worth! The banks do not like this and often refuse their short sales and/or ask you to pay back the difference. |
I have an Investor who says he can buy my house and negotiate a short sale with my bank- Is this okay?
This is very common tactic used by investors to try to buy houses. Do not be suckered into this! You lose either way! Why do they do this? Because they have nothing to lose, they send a low offer to the bank and if the bank accepts it they get a great buy on a house. If it doesn’t go through, then you will likely go to foreclosure and it doesn’t cost them anything. Either way you lose! If it does go through you just increased your potential tax liability (read below) by having the mortgage company take a bigger loss than necessary. Additionally, if it doesn’t go through you wasted valuable time that you could have been using to get a realistic short sale offer through. |
How does a foreclosure and a short sale show up on my credit?
A credit bureau is the only true source of information for determining how a short sale and a foreclosure is going to affect your credit.
From our experience with homeowners, which is not to be taken as any form of legal advice, foreclosures usually show up as FORECLOSURE and can stay on your credit report for seven years. If you apply for a new loan or have your credit run, you run the risk that the foreclosure will show up. It is also a common disclosure many employers require you to make on most job applications. A short sale is commonly listed as SETTLED DEBT, and can be much less harmful to your credit. Please consult a credit bureau for how a short sale and a foreclosure will actually affect your credit.
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What liability do I have when doing a short sale?
For advice on your liability when doing a short sale it’s best to consult an attorney. Recent changes in law, such as the Mortgage Debt Relief Act of 2007, have reduced homeowners’ tax liability.
In a short sale of your primary residence, the Mortgage Debt Relief Act did away with much of the tax consequences. For residences other than your primary, in both a short sale and a foreclosure you could be taxed for the difference in what you owe and what the bank receives as payment. This means the IRS could consider the difference as income, and you could be taxed on that income.
In a short sale we seek a full release of lien and request that the debt be considered settled. A short sale is a negotiation, so the bank has the right to ask you to sign an unsecured note (not backed by any of your assets) or ask you to contribute some cash at time of closing the short sale. Every short sale is different, as is every servicer and every situation. National Short Sale Center employs tactics to negotiate the best outcome for you.
In a foreclosure, you house is sold at an auction, which typically causes the difference of the total amount you owe and the foreclosure sale price to be much greater than in a short sale. This means you could have a higher potential tax liability. Additionally, the bank could sue you for a Deficiency Judgment.
A successful short sale will eliminate a deficiency judgment, minimize your tax liability, and keep the foreclosure off your record.
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What is a Deficiency Judgment?
A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan. For instance, if you owe $100,000 to the mortgage servicer and they see proceeds after the auction of $55,000, the remaining difference of $45,000 can be moved into a judgment against you. This will also appear on your credit report along with the foreclosure. The lender may be allowed to take further legal action such as garnishing wages to pursue payment based on the laws of your state. Some states have restrictions and regulations on deficiency judgments, but unfortunately the majority does not.
Some lenders will choose the deficiency judgment while others may pursue a path to write off the loan. If they choose to write off the loan, the lender may issue a 1099 form which you will have to pay taxes on for the calendar year. For more information on deficiency judgments and the tax liability you may face based on your current situation, submit your information to an analyst at NSC for a free consultation.
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What advantages are there in using National Short Sale Center instead
of other firms?
You should go with the company that is most effective at completing short sales. We hire people that have worked in the banks’ short sale departments. They know the “ins and the outs” of the banks and the right questions to ask. We are a nationwide service and have relationships with banks from all over. |
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Do I need to give you power of attorney?
No, you should never give power of attorney to short sell your property. |
What banks do you work with?
We work with almost any bank in the nation. Here is a list of some of the banks:
1st Nationwide Mortgage
2nd Mtg-Bk Of America
5th 3rd Bank
Aames Home Loan
Abn Amro
Accredit Home Lenders
ADAK
Advanta
Aegis
ALANTIC MORTGAGE
Allfirst
ALLIANCE
Altegra
America Servicing Company
American General
Ameriquest
AMC
APCO credit union
Associates Home Equity
Astoria Federal Savings
Atlantic mortgage
Aurora
Aurora home loans
AURORA LOAN SERVICE
Aurora Loan Services
Avelo
Bank of America
Bank of Suffolk
Bank One
Banko Popular
Bay Financial
BB&T
Blue Ridge Savings Bank
Branch County Federal
Calmco
Calmco Servicing
Capital City Bank
Carolina First
Cendant
Cenlar
Centex Home Equity
Central Mortgage Company
Champion
Charter One
Charter One Mortgage
CHASE
Chase Manhattan
Chevy Chase ank
CIT Group
Citi Financial
Citi Mortgage
City Loan Financial
City Mortgage
Columbia National
Commercial Federal |
Conseco
Consumers National Bank
Countrywide Home Loans E Jean
Crown Bank
Downey Savings and Loan
East Carolina Bank
EMC Mortgage
EquiCredit
Fairbanks
Fannie Mae
Farmers and Mechanics
Farmers Home
First Alliance Mortgage
First American
First Franklin
First Horizon
First Mortgage Corporation
Firstar Home Mortgage
Flagstar mortgage
GMAC
Great American Federal
Greenpoint
Greentree
HFC-Household Finance Corp.
Hibernia National Bank
Homecoming
Homeside
Homeq
Household Finance
HSBC
Independent Bank
IndyMac
Interbay Funding
Irwin Mortgage
Jim Walters (Walters Mortgage)
JMFC Funding
Land sale contract
Leader Mortgage
Lenders
Liberty Lending
Litton
Loanworks
Long Beach Mortgage
M&I
M&T MORTGAGE COMPANY
Matrix Finance
Meritech
Midland Mortgage
MID-STATE HOMES
Morequity
Money Store
Morgan Financial
Mortgage Lenders Network
MVB MORTGAGE |
National City Mortgage
National Lending Center
Navy FCU
Net Bank
New Century
North American Mortgage Norwest
Novastar
Ocwen
Option One
Pacesetter
PCFS
Pelican National Bank
Pennsylvania Housing Finance Agency
PHH Mortgage Services
Pine State Mortgage
PNC
Popular Financial
Principal
Provident
Qwest Financial
Regions Mortgage
Royal Bank
Sawyer Savings Bank
SBA
Scotiabank
Select Portfolio Servicing
SPS
SN Servicing
Source One
Sterling National Mortgage
Suntrust
Superior Bank
Synovus
TD CanadaTrust
Travelers
Trustmark National Bank
Union Planters
USDA
USDA Rural Housing
USDA-RHS
VHDA
Wachovia
Washington Mutual
Wells Fargo
Wendover
Wilshire Credit Corporation
World savings |
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How do I get started?
Click here or give us a call and speak with a Short Sale Specialist at
1 (800) 401-4638. |
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