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short sale is a real estate transaction in which a home sellers mortgagelender agrees to accept a payoff that is less than the amount owed on themortgage. When homeowners find themselves with a serious financial

hardship, and owe more on the mortgage than the home is worth, a short sale maybe a way to avoid foreclosure by negotiating a settlement with the lender.

A successful short sale can be a win for all parties involved: theseller is relieved of the financial burden of the mortgage, the lossestaken by the lender in the short sale can be significantly less than aneventual foreclosure, and the buyer gets a fair deal on the purchase.

Negotiating a short sale is no easy task; therefore, it is highlysuggested that homeowners considering a short sale work with a

licensed real estate professional who specializes in short sales. An experiencedagent/broker will be well qualified to guide a homeowner through the short saleprocess, facilitate communication and interaction with the lender, assist with collection

of lender-required documents, and bring the transaction to a successful close.

AFA (Home Affordable Foreclosure Alternative) isa federal government program designed forhomeowners who can no longer afford their

mortgage payments and wish to avoid the negative impactsof foreclosure when home retention is not an option. UnderHAFA, a homeowner can exit home ownership gracefully andwithout the liability associated with their mortgage debt.

The Benefits of a HAFA Short Sale:

No Deficiency Judgments No Cash Contributions at Closing No Promissory Notes $3,000 to Seller for Relocation Assistance Additional Incentives for Second Mortgages, up to $6,000 more at closing

Eligibility Requirements for a HAFA Short Sale:

Home must be or have been the primary residence in the last 12 months Seller must have a hardship First lien mortgage cannot be a government loan Mortgage originated on or before January 1, 2009 Mortgage is delinquent or default is foreseeable Current unpaid principle balance is $729,750 or less

For more information about this program, please call me and I will help you betterunderstand a HAFA short sale.

SHORT SALE requires anexperienced Real EstateAgent to navigate the

transaction. If you have family orfriends who need this expertise,please refer them to me forprofessional guidance.

A

his newsletteris dedicatedto educating

homeowners on Short Saletransactions. If you are

considering a Short Sale,I am available to discussoptions with you.

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HWhat is a HAFA Short Sale?

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Understanding the Short Sale TransactionShort Sales Explained

hort Sale properties present avariety of risks for a homebuyer. Homes are frequently

sold as is and the true condition ofthe homes systems and appliances islikely unknown. Due to theseinherent risks, it is more importantthan ever to include the protection ofan Old Republic Home Warranty

when purchasing a Short Saleproperty.

Valuable benefits provided by ahome warranty include riskreduction, budget protection, andpriceless peace of mind. Thewarranty also provides coverage forundetectable pre-existing conditionsthat could surface after close of sale.

If youre considering purchasing aShort Sale home, I recommend

safeguarding your investment andyour budget with an Old RepublicHome Warranty. Call me today formore information, or visitwww.orhp.com.

S

SHEILA NEWTON

TEAMsheilanewtonteam@aol.com

Tel: (864) 225-1205

www.SheilaNewtonTeam.com

7/31/2019 Short Sale Newsletter

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n the short sale process, you sell yourhome and settle your mortgage debtfor less than the amount owed. You

may be eligible to sell your home in ashort sale if:

If you qualify and want to move forwardwith a short sale, it is highly suggestedthat you consult with a professional realestate broker/agent who is experiencedin short sale transactions. See the BasicSteps for a Short Sale article in thisnewsletter for a general idea of theprocessbut keep in mind that the stepsmay vary depending on the lenderrequirements and/or the advice of thereal estate professional who will guide

you through the process.

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Do You Qualify

for a Short Saleon Your Home?

You have a hardship, such as ajob loss, divorce or medicalemergency

You owe more on the mortgagethan your house is worth

Youre unable to afford yourcurrent monthly mortgagepayment

Youre unable to modify yourcurrent home loan

ts highly suggested that you work with a real estate professional whospecializes in short sales and is well qualified to help you with these steps:

1. Complete a property valuation analysis lenders will only approve ashort sale if the borrower owes morethan the propertys fair market value.

2. Contact the lender for a short saleapplication.

3. Collect all of the financial data and other informationrequired by the lender include a fact-based letter detailing

borrowers hardship and current financial situation.

4. List the property for sale.

5. Receive and ratify a purchase contract from a qualified buyer.

6. Send the purchase contract to the lender, along with all of thelender-required documentation (requirements vary fromlender to lender).

7. Be persistent, but patient ideally, it should take 30-45 daysfor a purchase contract to work its way through the lenders

system, but the process could take longer.

These steps will need to be completed for each lender that is involved and everylender has its own process. Some lenders that are in second position(2nd trust/mortgage) will only start processing their short sale after theyvereceived written short sale approval from the first trust. This means that the overalshort sale approval process may take twice as long if there are twotrusts/mortgages secured by the property.

It is also recommended that you consult with an attorney and/or a licensed taxprofessional to understand all your obligations relating to a short sale.

IBasic Steps for a Short Sale Transaction

This is not intended as a solicitation if your property is currently listed with another agent. The articles may contain information obtained from thparties. ORHP does not endorse the recommendations of any third party nor guarantee the information provided is complete or correct. Copyright

Know Your Options

SHEILA NEWTON TEAM100 MIRACLE MILE DR STE A

ANDERSON, SC 29621-1300

Tel: (864) 225-1205

Fax: (864) 225-2424

www.SheilaNewtonTeam.com