Archive for November, 2010
Las Vegas Short Sale Agent Discusses Common Short Sale Mistakes
Posted by jamiecox in Las Vegas Short Sales on November 12, 2010
Las Vegas Short Sale Agent, North Las Vegas Short Sale Agent, Las Vegas Short Sale Closing Rate,
Short Sale Statistics, Why Short Sales Fail, Common Short Sale Mistakes
Why exactly would a bank agree to a Short Sale?
It is much more cost effective for a bank to do a Short Sale rather than Foreclose on a home. Banks are not interested in owning real estate. Banks make their money from receiving monthly mortgage payments. While banks will take a loss doing a Short Sale, they can often minimize their loss by as much as 10-40% over a Foreclosure.
Can the bank sue me or get a judgment for the difference between what I owe and what the home sells for?
This is a good question that is best answered by a qualified Real Estate Attorney. What you should know is that Nevada is what most people refer to as a “Deficiency” state. What this means is that generally speaking if the bank forecloses on your home, they can pursue you for a deficiency judgment unless they specifically waive this right in writing. For more specifics on this topic consult a qualified Real Estate Attorney .
In some situations your lender(s) may have additional recourse against you after the Short Sale. This includes, but is not limited to, an agreement to sign an unsecured or secured promissory note or cash due at closing. Although every effort will be made to obtain a full release/payoff status on your loan, we cannot promise how the lender will handle any deficiency of the loan. We strongly advise you to seek the council of a qualified real estate attorney for this matter.
This Realtor I know said Short Sales rarely close and banks don’t approve very many of them. Is this true?
It is true that you may have heard this from one or more Realtors – we certainly have – however, it is not accurate. Most Realtors are not educated on how to successfully close a Short Sale, in fact the national average for closed Short Sales by Realtors is between 20-50%. Reference back to How do I select the right team to successfully manage and negotiate my Short Sale? before believing others’ “negatively-tainted” opinions on Short Sales.
Tax Consequences Of A Short Sale – Las Vegas Short Sale Agent
Posted by jamiecox in Las Vegas Short Sales on November 12, 2010
There may be tax ramifications to a Short Sale but this is a very “loaded” question. You may have heard, “Don’t do a short sale because you will get a 1099 and have to pay taxes on the difference between what you owed on your home and what you sold it for or the amount the bank wrote off.” This may be true, but this is not the whole story…
If you borrow money from a lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
The thing that most people don’t know or don’t tell you is that with a Foreclosure, you will also get a 1099. In the case of a Foreclosure the 1099 is called a “1099-A.” So what’s the difference between a 1099-C and a 1099-A? The ‘C’ stands for “Cancellation of Debt” and the ‘A’ stands for “Acquisition or Abandonment of Secured Property”. The differences are much more than you get the ‘C’ with a Short Sale and the ‘A’ with a Foreclosure. It is important to know that while there are many differences, the tax consequences for the ‘C’ and the ‘A’ are the same. You may not even be required to pay taxes on the ‘income’ as shown on the 1099-C, but don’t just assume that you won’t have to pay. While we are very good at successfully closing Short Sales, we are not tax experts.
Before making your final decision, first consult a CPA or Tax Preparer .
The Mortgage Debt Relief Act of 2007 provides relief to many, many homeowners. For more information on the Mortgage Debt Relief Act, how it works, who it applies to, and more, please read more directly from the IRS website by clicking here .
One more thing you should know is that in approximately 99% of the cases, the amount of the loss at Foreclosure is greater than that of a Short Sale. If you are going to receive a 1099 in either case, it is in your best interest to do a short sale instead of allowing your property to be sold for less at Foreclosure or as an REO (Real Estate Owned or Bank Owned Property). Now that you know this, don’t allow rumors and incorrect information to influence an important decision in your life. Losing your home to Foreclosure is always the last resort and you should seriously look at all of your options before letting your home go to Foreclosure.
What Fee’s Are Associated With A Short Sale – Las Vegas Short Sale Agent
Posted by jamiecox in Las Vegas Short Sales on November 12, 2010
Are there any fees associated with doing a Short Sale?
Yes, there are 3 fees associated with doing a Short Sale. The great news is that the bank pays for 2 of these 3 fees…
1) Upfront Short Sale Fee: Small upfront fee that we charge to you as the Seller for the negotiation and mitigation services that we offer – this fee is very minimal.
2) Realtor Commissions: A fee of 6% of the sales price of your home that is paid for by your bank/lender.
3) Short Sale Processing Fee: A fee we charge to your bank/lender for the processing of the short sale.
Why do you charge a small fee for doing the Short Sale?
We charge a small fee for various reasons…
1. We have proven results – 90+% closing ratio and our office has closed hundreds of transactions.
2. We want to know that you as the customer are as committed to closing on the Short Sale transaction as we are
3. We incur lots of additional costs and expenses that are outside of the scope of “traditional real estate.” These costs are all associated with the negotiation and mitigation of your Short Sale – these are not costs associated with listing or selling your home
4. For more information on our process and the small fee associated with working with us, please complete the Short Sale Request Form .
How Long Does A Short Sale Take – Las Vegas Short Sale Agent Explains
Posted by jamiecox in Las Vegas Short Sales on November 12, 2010
Do you work with all banks?
Yes, we work with all banks. Unlike some agents and investors, we do not “selectively choose” which banks we work with and which banks we won’t. We have experience in working with many different banks/lenders across the United States.
How long does it take to complete a Short Sale?
This simple answer is that it takes approximately 5-7 months to complete a Short Sale from initial contact with you as the customer to closing.
There are several stages that are involved with the Short Sale process…
1. The first stage requires working with you as the homeowner to get all of the required documentation that your bank will require us to send them – we refer to this as completing the Short Sale Package. This stage shouldn’t take longer than a couple of days but this stage lies solely in your hands (to get this process started right away, please complete the Short Sale Request Form
2. The second stage involves us preparing the listing paperwork and scheduling an appointment with you to see your home and prepare your home to be listed for sale. This stage only takes a few days as well.
3. The third stage entails us aggressively marketing your home for sale and producing a willing, ready, able, and committed buyer. This stage can take as little as a few days or as long as a few months. On average we receive offers on our listings within 30-60 days.
4. The fourth stage is the actual presentation of the offer to your bank. This is where our expertise and experience in negotiating Short Sales takes place. The actual negotiation/approval process can take as little as 30-45 days or as much as 90+ days. On average most Short Sales take between 60-90 days from the date the offer is presented to the lender to the date of the Short Sale approval. In most cases, 75-90 phone calls, emails, and faxes back and forth between the lender and our team are required. The process would not typically be described as “fast” on the banks side of things, but with the right team working on your behalf, you can be at rest knowing that everything is being handled diligently and with much care.
5. The fifth and last stage to the Short Sale process is the period of time between Short Sale approval from the bank and the buyer closing on the home. We prepare all of the buyers that we work with to be ready to close in as quickly as 3 weeks from the time of Short Sale approval. Often buyer’s will even close in as little as 10-14 days. If you are still living in the home at time of Short Sale approval, it is imperative that you move out within 2 weeks from Short Sale approval.
Las Vegas Short Sale Agent Discusses How To Select A Short Sale Agent
Posted by jamiecox in Las Vegas Short Sales on November 12, 2010
How do I select the right short sale team to successfully manage and negotiate my Short Sale?
Las Vegas Short Sale Agent Jamie Cox, with The Cox Group at Keller Williams Las Vegas, Discusses how to select a short sale agent.
Before hiring just any ‘Agent’ to assist you in a Short Sale, make sure they are qualified and understand all the work that is required to see you through to the end. A properly trained Short Sale Agent knows how to qualify you for a Short Sale transaction and therefore has a very high success rate. Most Realtors®, Investors and Real Estate Agents do not understand how to qualify you and your lender for a Short Sale Transaction. This is one of the reasons they often have such low success rates when it comes to closing a Short Sale. Investors have around a 10% success rate. Most other so called ‘Short Sale Specialists’ have between a 20-50% success rate.
Be smart and make sure that you ask many questions before trusting your future, your credit and your financial situation with a self-proclaimed ‘Expert’ that may have a “special designation” after their name and just learned about Short Sales from a Title or Escrow Company, a Real Estate Seminar, or their Broker.
Las Vegas Short Sale Agent Offers FREE Loan Modification Kit
Posted by jamiecox in Las Vegas Short Sales on November 11, 2010
702-487-0000 – www.LasVegasShortSaleGuy.com – Jamie Cox – Las Vegas Short Sale Agent
Free Loan Modification Kit
Las Vegas Short Sale – Keller Williams Las Vegas – Free Attorney Consultation
702-487-0000 – www.LasVegasShortSaleGuy.com
Upside Down? Facing Foreclosure? Bad Investment?
Put our team of Short Sale Specialist to work for you.
Las Vegas Short Sale Agent Discusses Loan Modification
Posted by jamiecox in Las Vegas Short Sales on November 10, 2010
Upside Down? Facing Foreclosure? Bad Investment?
Put our team of Short Sale Specialist to work for you.
About Us Contact Us SEARCH THE ENTIRE LAS VEGAS MLS
Las Vegas Short Sale Agent Discusses Wells Fargo Streamlined Short Sale Process
Posted by jamiecox in Las Vegas Short Sales on November 9, 2010
Wells Fargo announced their “Streamlined Short Sale Process” in the areas of the country most impacted by short sales and foreclosures giving Las Vegas Home Owners with Wells Fargo Loans facing foreclosure some hope. The process is simple: List your home with a Las Vegas Short Sale Agent familiar with the process. When an offer is received you contact the local Wells Fargo Short Sale Representative to schedule a time to meet him. The representative will conduct a meeting in person or on the phone and ask a series of 11 qualifying questions. No financial documentation to fax, no hardship letter, and more importantly no waiting for months for a decision. Ideally the process should take 7-10 days from the time an offer is accepted.
702-487-000 – www.LasVegasShortSaleGuy.com
Upside Down? Facing Foreclosure? Bad Investment?
Put our team of Short Sale Specialist to work for you.
About Us Contact Us SEARCH THE ENTIRE LAS VEGAS MLS
Just Listed! North Las Vegas Short Sale – Las Vegas Short Sale Agent
Posted by jamiecox in Las Vegas Short Sales on November 7, 2010
North Las Vegas Short Sale - Kenya Springs
702-487-000 – www.LasVegasShortSaleGuy.com
Upside Down? Facing Foreclosure? Bad Investment?
Put our team of Short Sale Specialist to work for you.
About Us Contact Us SEARCH THE ENTIRE LAS VEGAS MLS
What To Look For In A Short Sale Agent…
Posted by jamiecox in Las Vegas Short Sales on November 4, 2010
I’m participating in an amazing personal / business developement class called BOLD. About eighty-five or ninety top agents in Las Vegas are going through this class. Today I wanted to get away from he everyday Las Vegas Short Sale and Foreclosure blog and talk about the results of the exercise. The exercise itself is pretty simple, everyone placed a blank piece of paper on their backs and then had 5 minutes to walk around the room and write what you appreciate about that person. For me it was amazing to see how some powerful agents perceived me. The words my peers used to describe me were dedicated, focused, sharing, and helpful furthermore admired my leadership skills, sense of humor, clear vision, and positive attitude. Not only was this very insightful but it got me thinking, if I were a home owner looking for a Las Vegas short sale agent these are the exact qualities I would look for. What are you looking for in an agent?
702-487-000 – www.LasVegasShortSaleGuy.com
Upside Down? Facing Foreclosure? Bad Investment?
Put our team of Short Sale Specialist to work for you.
About Us Contact Us SEARCH THE ENTIRE LAS VEGAS MLS
