With the current market conditions being as they are, we are continually telling sellers,
“If you don’t have to sell, DON’T”. However, we understand that sometime
homeowners find themselves in a position where they need to sell, even in a bad
market. eCore Group has created a team of professionals who specialize in what is
called a “Short Sale”. You probably have already heard of this strategy and might be
aware of some friends who are currently involved with their bank in short selling their
home.
A short sale is an alternative to foreclosure that gets the bank paid off (at a lower price
than what you currently owe) and substantially minimizes the hit on your credit. Not
every property is a candidate for a short sale. We would love to talk with you over the
phone or via email about your property and can tell you in a couple of minutes whether
or not a short sale will work for you. We work directly with several real estate agents in
Southern Utah who specialize in short sales and would let you interview as many as
you would like until you find the right fit. Also, if your home is currently for sale with a
Realtor, this is not a solicitation. Rather, we would love to help you and your Realtor in
setting up a short sale with your bank and getting the process started.
“If you don’t have to sell, DON’T”. However, we understand that sometime
homeowners find themselves in a position where they need to sell, even in a bad
market. eCore Group has created a team of professionals who specialize in what is
called a “Short Sale”. You probably have already heard of this strategy and might be
aware of some friends who are currently involved with their bank in short selling their
home.
A short sale is an alternative to foreclosure that gets the bank paid off (at a lower price
than what you currently owe) and substantially minimizes the hit on your credit. Not
every property is a candidate for a short sale. We would love to talk with you over the
phone or via email about your property and can tell you in a couple of minutes whether
or not a short sale will work for you. We work directly with several real estate agents in
Southern Utah who specialize in short sales and would let you interview as many as
you would like until you find the right fit. Also, if your home is currently for sale with a
Realtor, this is not a solicitation. Rather, we would love to help you and your Realtor in
setting up a short sale with your bank and getting the process started.
We at eCore Group are committed to the absolute satisfaction of our clients. We strive to provide the best in customer service. Our "One Stop Shop" formula for real estate is unsurpassed and unchallenged. We provide our clients with the most up-to-date information and only provide quality, investment opportunities. |
| SHORT SALE Q & A 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. When should I start my 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. What is the cost for you to conduct a short sale? A consultation to analyze your specific situation is completely FREE. 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 complete it sooner. In the past we have found buyers quickly and have used our relationship with the banks to push back your foreclosure sale date. Does e-Core Group buy my property? No, we never take ownership of properties. This reduces your liability. 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 lowball the lender and if the lender accepts 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? Foreclosures show up as FORECLOSURE, and can stay on your record for seven years. Anytime you apply for a new loan or have your credit run, the foreclosure will show up and is usually a required disclosure you must make on most credit and job applications. A short sale is listed as SETTLED DEBT, and is much less harmful to your credit. Please consult a credit company for more information. What liability do I have when doing a short sale? In a short sale, it is possible the bank could 1099 you for the difference in what you sell your property for and what you owed. This means the IRS could consider the difference as income, and you could be taxed on that income. The bank might also ask you to pay a portion of the difference back in the form of an unsecured note, which is similar to an I.O.U. It is a negotiation, and we employ tactics to have the bank consider the debt settled. In a foreclosure, your 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. This means you have a higher potential tax liability. Additionally, the bank may come after you for a Deficiency Judgment. A successful short sale will eliminate a deficiency judgment, minimize your tax liability, and keep the foreclosure off your credit. 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, including Utah. 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. Do I need to give you power of attorney? No, you should never give power of attorney to short sell your property. How do I get started? Give us a call at 435-229-0846 or email us at phil@e-coregroup.com. |