Short Sale Real Estate Agents In Albuquerque NM
Are you facing Foreclosure on your home? Experienced short sale real estate agents can help you avoid foreclosure with a short sale. Not all real estate agents have the skills or desire to successfully complete a short sale. We have the experience and the desire to help you with a short sale. In most cases, there is no cost to you to complete a short sale. Call us at 505 401-7500 for a private confidential consultation to see if a short sale is the right option for you. John Myers is an expert short sale real estate agent and was interviewed and quoted in this article by US News.
What is a Short Sale?
In a short sale, an Albuquerque short sale real estate agents works with your lenders to accept a price that’s less than the amount owed, in order to avoid foreclosing on the home. Major banks have staffed up in recent months to process short sales more efficiently than they ever had in the past. As an incentive to encourage home owners to pursue a short sale, major lenders, along with the HAFA (Home Affordable Foreclosure Alternatives) program are offering home owners cash incentives. As an Albuquerque short sale real estate agent, I can help you through the short sale process.
Albuquerque Home Owners Are At a Crossroads
Due to the massive economic downturn, the most significant financial asset that many Americans assumed they could always fall back on has turned into a financial liability for a large percentage of the population. Second quarter 2011 statistics from Corelogic show that 10.9 million, or 22.5 percent, of all residential properties with a mortgage were underwater, meaning they owed more on their mortgage than they could sell their home for today’s market. Add to that an unemployment rate that’s above 9 percent coupled, with widespread underemployment, and you have a situation where millions of home owners are more than 30 days behind in their mortgage payments.
Albuquerque Home Owners Face Foreclosure
Only a small percentage of the 6.3 million home owners in America who are in some stage of foreclosure reach out for help. Various combinations of fear, frustration, anxiety and mistrust cause financially strapped Albuquerque home owners to dig in their heels and avoid taking action. And that’s exactly what leads to foreclosure, as an Albuquerque short sale real estate agent, I can help you.
Albuquerque Short Sale Real Estate Agents Can Help
My mission as a short sale real estate agent who has achieved the Certified Distressed Property Expert Designation (CDPE) is to reach out to financially challenged Albuquerque home owners and help them to avoid foreclosure. The long-term financial impact of foreclosure cannot be underestimated. Foreclosure can:
Become a part of the public record and remain on a person’s credit history for 7-10 years
Drastically lower your credit score
Deem you ineligible for a mortgage for up to seven years
- Challenge current and future employment
- Put you at risk of a high deficiency judgment, which is the lender’s ability to pursue any debts you owe them for an indefinite period of time
- Become an issue against security clearance if applicable
Reach Out For Help From Short Sale Real Estate Agents
We’ve all heard about scams, shysters, the frustrations of working with people who don’t really know their stuff, so it’s important to ensure that you identify a trustworthy Albuquerque short sale specialist who is tapped into major lenders and is current on the kind of help available from all sectors. As a CDPE-designated real estate agent, it is my mission and my passion to help financially stressed Albuquerque home owners to get on a path of financial solvency and in the process, move the nation’s housing crisis one step closer to recovery.
Contrary to what some may have you believe, your mortgage lender does not want to foreclose on your home! Foreclosure is a disaster for all concerned. The current inventory of bank owned properties is creating a significant strain on bank operations and entire real estate market. On the local level, a single foreclosure in a neighborhood lowers the value of surrounding properties by 9 percent.
What Are Other Foreclosure Avoidance Options?
Foreclosure is one of the most devastating financial challenges that Albuquerque home owners can face and many times, it can be avoided. A short sale is not the only alternative to foreclosure. Here are others:
Refinance. Albuquerque home owners, you may be able to refinance your mortgage at today’s historically low interest rates, even if your loan is under water.
Mortgage Modification. A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. Be sure to never work with a mortgage modification company that requires an upfront fee.
Reinstatement. A reinstatement is the simplest alternative to a foreclosure’swhen it’s possible. Following a period of nonpayment, the homeowner simply pays the mortgage company the total amount due to date, and the mortgage is reinstated.
Sell the Property. Home owners with sufficient equity can list their property with a qualified agent who understands the local foreclosure processes and is able to close a deal prior to bank foreclosing on the home.
Forbearance. A forebearance is repayment plan that involves a negotiation with the mortgage company to make additional payments over a period of time in order to become current on the mortgage.
Rent the Property. If your local market conditions will allow you to rent your home at or above the cost of your mortgage, renting the property and using the income to pay your mortgage could be an option.
Deed-in-Lieu of Foreclosure. Also known as a friendly foreclosure is a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the contentious foreclosure process. Lender approval is required for this option, and the homeowner must vacate the property at a designated time.
Service Members Civil Relief Act (military personnel only). If a member of the military is experiencing financial distress due to deployment, and that can show that their debt was entered into prior to deployment, they may qualify for relief under the Service Members Civil Relief Act.
What Albuqueruqe Home Owners Need to Know Now. The highest ranks of the U.S. Government, along with major banks and local agencies, have retooled and increased staff to help home owners to avoid foreclosure. As a CDPE real estate agent, my mission is to work closely with you, drawing upon all of my expertise and resources throughout our community to navigate the best possible solution for you and to help you make a fresh start on your life.
What is An Albuquerque Short Sale?
You may be askinlbuquerque short sale. An Albuquerqeu short sale is a process where the lender agrees to accept less than the amount owed on the mortgage whe the property is sold. In other words, your home is worth less than you owe on the home. Rio Rancho short sales are a complex transaction that take months. Most lenders must also consult with insurers and investors before approving a short sale. Rio Rancho short sales must also be approved by any junior lien holders as well, such as a second mortgage, liens by the water department, HOA, or others. An experienced Rio Rancho short sale Realtor is needed to negotiate the sale with the bank. Consult with your attorney and accountant if you are considering a Rio Rancho short sale.
The Short Sale Process
Home owners must be experiencing financial hardship and be in default on their loan before the lender will consider a short sale in Albuquerque. The first step in the process is to notify the lender of your hardship. It’s important to keep lenders informed, since once you default on the loan, they can begin the foreclosure process. Most lenders can be convinced to postpone the foreclosure process to allow time for short sale negotiations.
Lenders will not discuss any personal information to your short sale real estate agent without your consent. You will need to sign a third party authorization to give your lender permission to speak to your real estate agent. Your third party authorization should include the property address, loan number and the agent’s contact information. Many lenders will require that you complete their third party authorization. Home owners must also provide a hardship letter. The hardship letter must provide detailing your financial difficulties. Some financial hardships include loss of job, divorce, excessive debt, death, illness, and others. The homeowner will be required to provide financial information such as proof of income, list of assets, past tax returns, past bank statements, and other information.
The lender will require a valuation of the home by an appraiser or a broker specializing in providing home values to lenders.
In some cases the lender may provide a price they are willing to accept prior to obtaining an offer. However, in many cases, your short sale Realtor must decide a fair value of the home. They will then list the home and and try to find a buyer. Once an offer is provided, your real estate agent will submit the offer to your lender. Your lender is not required to accept the offer and may prepare a counter offer.
Once you receive an offer on your home, lenders require a copy of the listing agreement, purchase agreement, proof of funds from the buyer. Lenders may require additional information from buyer and seller. It is not unusual for the lender to renegotiate certain fees or refuse to pay for some items. If an agreement can be reached among all parties, the short sale will be approved.
The lender will provide a release which relinquishes their interest in the property and allows it to be sold for less than the amount owed. This does not satisfy the note. There is still a deficiency for which you are liable. In most cases in Rio Rancho, lenders will agree not to pursue a deficiency against the home owner.
What is a Pre-Foreclosure?
Pre-foreclosure refers to the beginning phase of a legal proceeding that ultimately involves repossessing property from a defaulted borrower. A notice of default informs the borrowing owner that the lender is pursuing legal actions toward foreclosure. Utlimatley, these homes will turn into a foreclosure, deed in lieu of foreclosure, or a short sale.
Short Sale Tax Liability to the Borrower
Borrowers will receive a debt forgiveness from a lender in the course of a short sale. The IRS requires a 1099 to be issued for any debt forgiveness. Tax laws are constantly changing and homeowners must speak to a tax professional to determine their tax consequences of a short sale
Short Sale Benefits to the Borrower
A short sale benefits the borrower by allowing them to avoid foreclosure. A foreclosure can severely damage your credit. During the short sale process, you may be able to negotiate with the lender to avoid a negative credit rating. Even if the lender reports the short sale, it is much less damaging than a foreclosure. When you negotiate a short sale, the lender is agreeing to accept less than the full amount owed on the mortgage, and will likely report the account as settled for less than the full balance.
Short Sale Benefits to the Lender
A lender will usually recoup more of what is owed on a property through a short sale than if they foreclose on a property. New Mexico is a jurisdictional state which means the lender must utilize the court systems to foreclose on homes. Foreclosures in New Mexico are expensive and very time consuming. In many cases homeowners leave the home and the home is left vacant. There are many bad things that happen to vacant homes’ In addition, a large number of foreclosed homes in inventory can be problematic for lenders. Homes are often a liability since many come with code violations, delinquent taxes and clouded titles. Lenders will often find it more beneficial to write off the amount that is owed on the loan than to foreclose.