Will your mortgage adjust soon and you cannot afford paying the increased payment?
Do you want to sell your house but there is not enough equity?
Do you want to avoid or stop a foreclosure and get a fresh start?
If you answered yes to any of these questions, regardless of your circumstances, JC & Associates has powerful solutions available to help you STOP the foreclosure process and buy you time to explore your options. Our experts will help prevent the downgrading of your credit score while providing you with A FRESH START.
The Short Sale program is frequently unfamiliar to borrowers to whom it is offered, the following Q+A is meant to help you understand some of the main issues in the program. However, this Q+A does not take the place of a thorough discussion between you and your JC & Associates Consultant, relating specifically to your own situation.
Q. I have not heard of this kind of program before. Can you explain?
A. Traditionally, lenders have recovered their assets on defaulting loans through foreclosure, which is a lengthy, expensive, and often confrontational process. The Short Sale program creates the opportunity to avoid the foreclosure process altogether and replace it with a sale of the home at the best available price. The result is a lower-cost outcome for the lender and a potentially much better outcome for the borrower.
Q. What exactly is a "short sale"?
A. A short sale is the sale of a home at a price that is less than the loan balance. You may be aware that lenders may accept short sales negotiated independently by borrowers; however, the process is generally time consuming and uncertain. The Short Sale program has the advantage of qualifying you first and then using JC & Associates to manage the marketing and sale of your home.
Q. Will participation in this program stop foreclosure proceeding?
A. Temporarily. Our goal is to delay the forclosure several months to obtain a successful Short Sale before a foreclosure is concluded.
Q. If this is not a foreclosure, what happens to my credit?
A. The impact on your credit depends upon your mortgage lender. Usually the only negative impact in a short sale is the delinquency of your monthly mortgage payments.
Q. What role do I play in the sale of my home?
A. JC & Associates will work with you throughout the process; it is still your house. JC & Associates will confer with you about pricing strategies, negotiation strategies and similar issues. In order for this program to work, you will need to work closely with your consultant.
Q. What is the cost to me?
A. If the Short Sale closes, there is no out of pocket cost to you. JC & Associates broker's commission and closing costs will be paid out of the mortgage payoff (funds which would otherwise be paid to your lender).
Q. Do I get to approve the final sale price?
A. Yes, however, to remain a part of the Short Sale program, the investor of your loan must also approve the final price.
Q. Are there any tax implications to this transaction?
A. Possibly. The laws relating to this issue are complicated, especially if you have refinanced this home since you first purchased it. JC & Associates cannot give any tax advice; you should consult your own tax advisor for counsel on this topic. For more information from the IRS on the Mortgage Forgiveness Debt Relief Act, you can take a look at: IRS.gov
Q. What determines if I can participate in this program?
A. Anyone can participate in a short sale, regardless of situation. The investor of your loan will make the determination based on a number of factors—there is no set formula for assessing participation. JC & Associates will approach your lender on your behalf to ensure you are a likely candidate for the program.
Q. Should I consult an attorney?
A. You are always free to consult an attorney, now or at any time during the Short Sale process, but are not required to do so. Engaging an attorney is costly, however, and is not recommended for this program.
Q. How long does the program take?
A. The Short Sale program is designed to result in a quick sale of your home and our goal is that the sale takes place no more than 90 days from the time you list your home for sale.
Q. When will I have to vacate the house?
A. That depends largely on the success of the marketing effort, and on the terms of the sale that are negotiated with a buyer.
Q. What if an acceptable buyer is not found?
A. The program depends on negotiating a reasonable sale on your home and there is no guarantee of this happening. If no acceptable sale occurs, the program ends.
Q. Does my JC & Associates Consultant work for my lender?
A. Your JC & Associates Consultant has been hired by YOU to ensure success of this program. Your Consultant is YOUR employee with your best interests in mind. You wouldn't go to court without an experienced attorney. Why would you go to your lender without an experienced short sale specialist?
Contact us today at shortsales@coastrealtyca.com for a no obligation Consultation and Home Evaluation.
We look forward to the opportunity of becoming your trusted real estate resource.
Jimmy Castro, Coast Realty President/Team Leader. JC & Associates
