Foreclosure Is Not The Only Option!

At Treadstone Realty, we have a dedicated team that works with distressed homeowners to avoid foreclosure of their home.  Our team provides the essential services necessary to help mitigate loss while offering solutions that meet the demands of your lending institution. Our service includes short sale negotiations. If for whatever reason you are currently behind on your mortgage payments - or foresee that you will soon be unable to continue making your payments, you do have options.

What is a Short Sale?

Also known as a real estate short pay-off or a pre-foreclosure workout, a short sale is an agreement with a lender to accept less than the amount owed by a borrower via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure.

At Treadstone Realty, we know that a short sale is not always an easy decision, nor is it a pleasant transaction.  We are sensitive to your needs.

While we diligently work with your lender to effect a short sale of your property, you must be aware that some lenders do not accept short sales or discounted payoffs, especially if it is more beneficial to the lender to foreclose; moreover, not all sellers nor all properties qualify for short sales.

If you are considering the purchase of a short sale, there could be drawbacks. For your protection, we strongly suggest that all buyers of short sales:

• Obtain legal advice from a competent real estate lawyer
• Call an accountant to discuss short sale tax ramifications
 
Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you an idea of what to expect.  We can help you with the following:

• Calls to the Lender
• Submmission of Authorization Letter
• Obtaining Preliminary Closing Statement and Net Sheet
• Hardship Letters
• Proof of Income and Assets
• Comparative Market Analysis
• Purchase Agreement & Listing Agreement

Now, if everything goes well, the lender will approve your short sale.  As part of the negotiation, we encourage you to ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request.

It is ALWAYS our goal to help our clients with a competent, knowledgable and compassionate team of professionals that fully understand your needs.  We're here to help you in any way we can.

For more information, please contact us by clicking here.  By taking a moment to fill out the contact information, our team members will be able to contact you in a timely manner.