Nevada Short Sale Information For Nevada Homeowners [mortgagegoal.blogspot.com]
Bill and Francoise Myers, owners of The Myers Team with Century 21 MoneyWorld have successfully sold more short sale listings than any Realtor or Broker in Nevada. The Myers Team is nationally recognized as one of the most influential figures in real estate today. The following article answers some of the most frequently asked questions regarding short sales and loan modifications. For additional information, please visit the official web site of The Myers Team at www.NevadaShortSaleInfo.com
AFTER A SHORT SALE, CAN THE BANK COME AFTER ME?
Most short sale information available on the Internet is worthless. Each state has different laws regarding foreclosure and the short sale process. Many people do not understand the difference between a SHORT SALE vs. FORECLOSURE in NEVADA. Doing a short sale will minimize damage to your credit, and enable your family to get a FRESH START. Allowing your home to foreclose WILL result in maximum devistation to your credit plus you may end up being sued by your bank. When a home is foreclosed upon in Nevada, the bank has deficiency rights. After a foreclosure, the bank will issue a 1099-A to both you and to the IRS. A 1099-A (abandonment) legally enables the bank to come after you for an expensive deficiency judgement lawsuit. A short sale, however, is MUCH different. After a successful short sale, most banks will issue a 1099-C (cancellation) which is a legal cancellation of debt. Banks cannot legally come after you to collect any deficiency once they have issued a 1099-C. Bank s will do everything in their power to threaten and intimidate, however, once a 1099-C is issued, you are on solid ground. The above information is not intended as "legal advice" however, this information is available on the Internal Revenue Service web site and is available for all to research.* Many homeowners are unsure what to do, and are confused by endless television ads from bankruptcy attorneys trying to convince you that bankruptcy is your only option. Going bankrupt to prevent a foreclosure is like cutting off your hand because of a "hangnail." Bankruptcy is the worst case scenario. Why go bankrupt if you don't need to? YOU HAVE MANY OPTIONS.
SHORT SALE vs LOAN MODIFICATION
FACT: There is no government program that forces lenders to modify your loan.
The banks have no legal obligation to change any aspect of your loan. This decision is completely voluntary. There are government programs which provide incentives for lenders and banks to modify, but lenders still make more money by foreclosing. Additionally, the banks can roll "legal fees" into your new modified loan, which were incurred during the modification and trial modification process. This means not only are you paying your previous loan balance, you are also paying additional lawyers fees, foreclosure extension fees, late fees, etc. While the media continues to promise HELP for struggling homeowners, the fact remains that banks are NOT modifying loans to current market value.
Banks may agree to temporarily modify your monthly payment and interest rate, however, banks will NOT reduce your overall loan payoff.
30% of people who fall behind on their mortgages catch back up. This means that if the banks wait long enough, they know that you will borrow money from your 401(k), your credit cards, your family, or wherever else you can find it so that you catch back up on your mortgage. This is precisely why banks will not work with you until you are months behind on your house payments, after which, your credit has already been damaged. Additionally, almost half of the people who do receive modifications fall behind again within 6 months. The banks know there is a good chance that any effort it puts forth to modify your loan may result in a failure. This is why banks offer "trial modifications." The trial modification is just another tactic which banks use to trick you into paying additional mortgage payments (up to six months worth) before they deny your loan modification, or foreclose.
Remember if you are offered a loan modification, don't just focus on the monthly payment. Look closely at the terms of the loan.
1) What is the new principal?
2) Does the interest rate change during the life of the loan?
3) When does the interest rate jump back up?
4) What will the payment be at the end of the 3-5 year modification period?
Most modified loans fail for a reason, THEY ARE TERRIBLE LOANS. What is the point of modifying your loan for three to five years and then after the modification period is over, you're in the same position as when you started? The loan payment WILL jump back up, you won't be able to afford it, and home values are NOT going to double in the next five years. You will still have an upside down home where you owe more than it is worth?
A modification that doesn't solve the problem, or leaves you living paycheck to paycheck is a BAD DEAL. The goal of a short sale is to offer you a FRESH START. Don't chain yourself to a massive pile of debt by accepting a home loan modification that doesn't help you rebuild your life and your future wealth.
A short sale (also called a "Short Payoff "or "SPO") allows a homeowner to sell their home at current market value. While nobody wants to sell their home, the fact remains that millions of Americans have discovered that loan modification programs are a complete waste of time.
WHY MEDIATION DOESNT WORK
When homeowners get behind on their mortgage payment, many "so called" experts recommend that the homeowner should speak with their bank(s) through the "mediation process" to find the best solution. Please be advised that this may be the WORST thing you can do. BANKS ARE DEBT COLLECTORS. Banks do NOT represent you or your family in any capacity. At a mediation meeting, the bank will show up with their corporate Attorney. The Attorney (whose sole purpose is to represent the bank's best interests) will be quick to remind you that you signed a contract with the bank, and will explain that they have the legal right to sue you for a "deficiency judgement lawsuit" should the home foreclose. Additionally, the bank's Attorney may attempt to threaten you with wage garnishment and additional judgements or liens against you. The mediation process is NOT fun and very stressful. The banks' main objective with the mediation process is to see if they can intimidate you into resuming making your mortgage payments. The bank does NOT represent you, and they are NOT obligated to explain your real options. The Myers Team does not represent the bank. We are your advocate, and WORK HARD FOR YOU.
SHOULD I HIRE AN ATTORNEY?
There are NO Attorneys who specialize in short sales; however, there are plenty of Attorneys who specialize in taking your money. Before you hand over your hard earned dollars to a lawyer, consider the following; in these tough economic times, many Attorneys are experiencing a decrease in clients, and are looking for ways to generate additional income. Many Attorneys, who have never offered "short sales" as one of their services, are now jumping on the bandwagon and offering to do short sales for their clients. Times have gotten so tough for lawyers that even "Accident Attorneys" are now advertising Bankruptcy and Short Sale Services. Using an Attorney to facilitate a short sale is a concern for several reasons: First of all, do you really think that the Attorney you hire is going to make your short sale their top priority? Are they going to do the work themselves, or will they hand it off to their office assistants and paralegals to make the critical follow-up phone calls, s end important faxes, emails, etc.? Additionally, Attorneys do not work for free. Attorneys can be quite expensive and most people who are considering a short sale are experiencing a certain degree of financial hardship. Will the Attorney guarantee their services and pay you a full refund if they fail to perform? Of course not. Who has money to hire an expensive Attorney, when you are losing your home and preparing to move, etc.? We at The Myers Team are NOT Attorneys, however, we are the most experienced short sale Realtors in the city. Our service is 100% guaranteed, meaning if the bank rejects the short sale for any reason, you do not pay us a dime. Our loyalty is to our clients. Why pay for an expensive Attorney when you can be backed by the experience, knowledge and negotiating power of the Century 21 Real Estate Corporation with no out of pocket expense?
Homeowners are always welcome to consult with an attorney to advise them of their options, however, be careful. If you follow the advice of the attorney and end up getting sued by the bank, then you will need to hire an attorney for a very expensive lawsuit. While there are many respectable and ethical attorneys out there, you must educate yourself and not place your unconditional faith in someone who stands to make a handsome profit should you get sued. Additionally, if you speak with a "Bankruptcy Attorney," they are undisputed experts at helping you go Bankrupt; however, they also make their living by convincing you to "File Bankruptcy." Bankruptcy is always an option, however, NOT always necessary.
HOW MUCH DOES A SHORT SALE COST?
How much money do you have to pay by choosing to do a short sale with The Myers Team? ZERO. Our services are 100% free.* While many Brokers will charge you upfront fees to do a short sale, we at the Myers Team do not. Beware of Realtors who charge you "upfront fees" for short sale service. Do they guarantee that ALL your money will be refunded if the bank denies your short sale? Probably not. We at the Myers Team know that this is a difficult time. We are here to help you and NOT take advantage of your situation. We do NOT use outside negotiation companies. We personally handle the negotiation process with the bank and will take care of your every need from LISTING to CLOSING. The Myers Team will NEVER charge you ridiculous "document fees" or "storage fees." These are fees which Brokers use to pad their pockets. You will not be required to pay for appraisal fees, inspection fees, or repairs. The only thing which you are required to pay for is the moving truck. When you use Th e Myers Team, to represent you, we do not charge you a dime. We ONLY get paid if the short sale is approved, and we get paid by the bank...NOT YOU. This is a guarantee.
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