Short Sale Assistance - Elena & Kirill Gorbounov(a)

Short Sale Assistance

Important Tips:

Don't ignore it
Contact the lender and see resources below
Respond to mail from the lender
There are housing counselors with the jurisdiction you live in.
There are various scams out there that promise to stop foreclosure immediately if you sign a document where you sign over the title, commit fraud, or cheated out of your property - never sign a legal document unless you read it and understand it!

Certified Distressed Property Expert - Kirill Gorbounov and Elena Gorbounova Short sale foreclosure

Are you aware of someone late on mortgage payments?

Typically Foreclosures may drop your credit score from 250 to over 300 points and usually affects the score for over 3 years while Short Sales sometimes can have little or no affect on your credit score.

Foreclosures remain on your credit history for 10 years or more while Short Sales are not reported on your credit history the same way.

So Call us today for a confidential consultation and additional information.

As a Certified Distressed Property Expert and REALTOR, I will provide vital skills and knowledge to save the credit, alleviate the insecurity and most importantly, help the family. As a CDPE, I can save 8 out of 10 people from foreclosure. Time is of the essence!

~Kirill Gorbounov; 571 276 0986; KirillRealtor@yahoo. com.

Short Sale Myths.

Short Sale: Pitfalls & Solutions.

Video explanation of a Short Sale.

Did you know 7 out of 10 who foreclose never talked to anyone?
(See Additional Government resources below.)

What Is A Short Sale?

In a Short Sale the bank lets the property sell for less than what is owed on the note.

Why Would the Bank Consent To Lose Money?

Lenders lend money and they are not in the business of owning homes. On average the REO process costs $40,000 more.

I've Already received the Foreclosure Notice ... Is It Too Late To Do A Short Sale?

I Haven't Missed Any Mortgage Payments. Can I Still Do A Short Sale?

YES. We simply need to establish hardship of why the payments will stop in the near future.

Do I Need to Bring Money to the Table (Commissions, Taxes, Closing Costs)?

Typically all expenses are paid by the lender.

What about a 1099?

In December 2007, President Bush signed into law, the Mortgage Forgiveness Debt Relief Act, which eliminates the capital gain income tax that used to be levied on the forgiven portion of the primary residence's sale. The tax is still in effect for second homes, and investment properties. For details please consult with a CPA.

Reasons To Avoid Foreclosure:

Lenders may obtain Both Judicial Foreclosure and Non-Judicial Foreclosure options are available to lenders in Virginia. Lenders can also obtain deficiency judgments, without limits, in Virginia.

Concern	Foreclosure	Short Sale
Fannie Mae Loan for Primary Residence in the future (May 21, 2008).	Ineligibility for 5 years.	Ineligibility for 2 years.
Future Fannie Mae Loan for Non Primary Residences - Investors (May 21, 2008)	Ineligibility for 7 years.	An investor who successfully negotiates and closes a short sale should be qualified for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan with any Mortgage Company	On any future 1003 Application (Standard Loan Application), a prospective borrower will have to answer YES to question C, in Section VIII, that asks, “Have you had property foreclosed upon, or given title or deed in lieu thereof?” This will affect all future rates.	There is no similar declaration, or question regarding a short sale.
Credit Score	Score may be reduced from 250 to over 300 points and in general affects the score for over 3 years.	After the sale, the mortgage will be described as paid or negotiated, which can lessen the score as little as 50 points, if all other payments are made. The effect can last as short as 12 to 18 months.
Credit History	10 years or more on the public record in the person’s credit history.	No particular item reporting it as a “short sale”. Normally the loan is reported as “Paid in full, settled.”
Security Clearances	In most cases the clearance is revoked and the position as a result is terminated as a result of a foreclosure.	A short sale by itself does not contest most security clearances.
Current Employment	Many employers exercise the right to regularly check the credit who are in sensitive positions and a foreclosure is grounds for immediate termination or reassignment.	Since a short sale is not reported on a credit report and thus not a test to employment.
Future Employment	Since many require a credit check for all job applicants then it might be a problem.	Since a short sale is not reported on a credit report and thus not a test to employment.
Deficiency Judgment	100% of the time the bank has the right to pursue a deficiency judgment.	Sometimes it's possible to pursuade the bank to give up.
Deficiency Judgment Amount	Foreclosures go through an REO process if it does not sell at auction, which typically results in a lower sales price, a longer time to sell, and consequently in higher possible deficiency judgment.	The home is sold close to market value resulting in a lower deficiency amount.