FAQ’s About Short Sales

If you’ve been around the real estate world at all, or even listened to TV and radio commercials, you’ve probably heard about short sales. They seem to be a big commodity in today’s market, yet many buyers and sellers often wonder what it really means and how the short sales process takes place. Here are some FAQ’s that will answer some of the most common questions.

Exactly What Is A Short Sale?

Short sales happen when a home is sold for less than the existing amount of the loan. If the lender accepts a payoff that is discounted in order to satisfy the debt owed on the loan, then a short sale happens. Almost always, the seller will need to prove that he has fallen on hard times and cannot pay the full amount of the loan.

How Does A Foreclosure Differ From A Short Sale? 

The bank owns a foreclosure and has most likely already foreclosed on the property, whereas in a short sale, the property is still owned by a struggling owner who is asking if the lender will be willing to take a discounted payoff of the loan.

Are Short Sales Always Heavily Discounted When Sold? 

No. Banks decide the selling price by getting the property appraised. Almost always, the bank will not accept an offer, which is more than 10% below the appraisal value.

Why Do Short Sales Take A Long Time? 

During a normal real estate transaction, the deal is closed once the buyer and seller agree to all terms and draw up a contract for the purchase. However, in a short sale, there is a bit of a lengthy process of determining the property’s fair market value, as well as the process that determines if the seller can qualify for a short sale.

Who Pays The Real Estate Agent’s Commission And Seller’s Closing Cost? 

This is usually paid by the current lender and includes, commissions, closing costs and any back taxes and liens.

Does The Seller Have To Pay Tax On The Debt That Has Been Forgiven? 

It’s important to discuss this with an accountant, but generally the lender will declare a loss to the IRS as bad debt for the deficiency. The borrower will usually receive a 1099 form from the lender representing the income gain that comes from the waiver of indebtedness. It will be necessary for the seller to account for this income. The Mortgage Debt Relief Act of 2007 protects the primary residence of borrowers who are short selling their homes. This happens by allowing much of the reported income to be excluded. Insolvency may be declared on a borrower’s secondary investment property and this would allow the owner to also exclude that income as well.

For more information on Short Sales and how they might affect you, call us today at Jerry Pinkas Real Estate Experts. We have the answers you’re looking for!

Jerry Pinkas Real Estate Team
854 Frontage Road West
Myrtle Beach, SC 29577
843-222-1926
beachrealestateagents.com

Choosing The Right Real Estate Agent When A Short Sale Is Needed

Choosing The Right Real Estate Agent When A Short Sale Is Needed

Myrtle Beach Short SalesWe have often been asked “Do I really need a real estate agent when I could short sale my home myself and save much needed money? “  A short sale is a critical decision and possibly one of the most important decisions you will make in a lifetime, a good agent can guide you every step of the way.

Will the Real Estate Agent Do What Is Best For Me?

If the economy has put you in a position where you need to sell your home for less than your mortgage it is a very depressing and stressful time in your life.  Some questions you may be asking are:

  • What assurance do I have that an agent will really work for me?
  • Will the agent be too tied up with other clients to work with me?
  • How can I judge the integrity of the real estate agent?
  • Will the efforts of the agent be as much or more than I would do for myself?

During this stressful time in your life you want to be comfortable with the real estate agent you select to work with you on the sale of your home.  You want someone you can be honest with and feel comfortable saying “no” to an offer that doesn’t feel right.

Look for a real estate agent that is a business person with a good attitude but one that isn’t intimidating.  In other words, you want an agent that is professional and assertive when they are dealing both with you and with other agents.

Look at the selection of an agent the same way you would choose a doctor for a second opinion in a medical crisis situation.  You always want to work with an agent that has your best interest in mind.

The Interview Process For A Real Estate Agent in  Short Sales

You will definitely want to interview for the perfect agent, one that is not only familiar with your area, but also has a good understanding of short sales and you feel comfortable with the person you select.  When you ask an agent for an interview they will most likely do a presentation.  This is a standard practice but you want to be suspicious of an agent that clicks into the presentation process right away in the interview process.

You goal is to get past a canned presentation and really get to know the real estate agent.  Does the agent really understand what your need?  In most cases agents have integrity because their reputations depend on it.  Their only objective should not be the sale of your home as quickly as possible.

What is the sales record of the real estate agent?

Many agents have a great sales record even in a down economy.  Don’t be afraid to ask about their history of sales. A real estate agent shouldn’t hesitate to give you their most recent sales along with references.  You will want to call some of the sellers and ask how the agent was to work with and were they comfortable with the process.

Don’t be afraid to ask the seller a few questions. 

  • Was their home on the market very long?
  • Did the agent reduce the price of the home on a frequent basis?
  • Were they also in a short sale position?
  • If yes, did the agent know what they were doing?

Just a few other questions you may want to ask the reference would be:

  • Was it evident the real estate agent had a plan?
  • If yes, was that plan followed?
  • Was it evident the agent had the education to handle a home that was on short sale?
  • During the interview you want to take note of the tone of voice the agent uses.
  • Do they appear by be disinterested and talking in a monotone?
  • Do you find their voice to be irritating or relaxing?
  • Does their tone of voice reflect they are excited about your listing?
  • We all are comfortable with different tones of voice.
  • How you are treated during the interview lays the ground work for how you will be treated during the entire sales process.

Be sure and ask questions that will give you an indication of the negotiating skills of the agent.  As about the sales commission and what they feel should be the lowest selling price for your home.  Get comfortable discussing money with real estate agents.  A good indication of the agent’s skills in this area is to try and get a lower sales commission.  Can they convince you that the rate is not only fair but they will work hard to earn that commission?  If yes, they will be in a position to negotiate a good sale for your home.

By asking the right questions you will be in a better position to judge whether the agent is the right one for you.  In a stressful short sale position, you need to have someone that is on your side and working for you.

The Jerry Pinkas Short Sales Team
Myrtle Beach, SC 29577
843-222-1926
http://myrtlebeachshortsaleteam.com/

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Myrtle Beach Short Sale Experts – For Sellers

Myrtle Beach Short Sale Experts – For Sellers

WE ARE THE SHORT SALE EXPERTS!

* When selling a short sale succesfully, there will not be a foreclosure. A Foreclosure damages credit up to 7 years and bankruptcy up to 10 years. Many experts believe that a foreclosure is much worse than a bankruptcy.

* Protect your credit. Foreclosure damages credit up to 7 years and bankruptcy up to 10 years. Many experts believe that a foreclosure is much worse than a bankruptcy.

* Our Short Sale Service is FREE to you; the lender covers all the costs involved.

Controlling future costs. If your property is sold at an auction, you may owe deficiencies and other expenses to the lender. Under most short sales we negotiate, the homeowner will be relieved of this possible future headache.

Can investment properties be short sale?

Most definitely. Any type of property can be sold through a short sale.

Can you do short sale anywhere in the county?

We Specialize in Short Sales in Myrtle Beach, North Myrtle Beach, Surfside Beach, Garden City, Conway, Loris, Carolina Forest, areas. To be good at what you do, we focus only on the Grand Strand Area of South Carolina.

* Value of the property in the market is lower than loan amount.
* Reduced Income or Unemployment.
* Inability to work due to health reasons.
* Separation or Divorce.
* Medical Bills.
* Business Failure.
* Death of a Spouse.
* Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
OR Any other circumstance that cripples your ability to repay your mortgage.

* Does It Matter Who Does your Short Sale?
Absolutely! This year Less than 23% of the listed properties Sold

* In today’s changing Real Estate Market, you need every advantage to selling your home.
That means your Realtor, their track record and experience is more important than ever. We are one of the most successful sale teams on the entire Grand Strand! The percentage of listings we sell is over 78.93%.

* What Happens If I Don’t Do a Short Sale or my Short Sale is Unsuccessful?
The result is the same: A Foreclosure. Our goal is for you to avoid foreclosure, which will affect your credit more than a short sale. Generally a foreclosure is one of the most damaging occurrences in a credit history. Most likely you will miss mortgage payments through the course of a short sale and this will show on your credit history. But at the end of the day, when your short sale is completed, your credit report will show that your mortgage has been “satisfied”.

Myrtle Beach Short Sale

The Jerry Pinkas Short Sale Team
Myrtle Beach, SC 29577
843-222-1926

The Intelligent Choice!
* Join the Thousands of homeowners that have successfully avoided Forclosure.
* We can Help You Now!
* No Obligation – Free Consultation
* 843-222-1926

Myrtle Beach Short Sale Specialists – for Buyers

Myrtle Beach Short Sale Specialists – for Buyers

BUYERS - WE ARE SHORT SALE SPECIALISTS!

Hire an Agent with Short Sale Experience

Buyers pursue short sales to get a good deal. It’s one strike against you if the listing agent has never handled a short sale, but it’s even worse if your own agent has no experience in that arena. You need an experienced short sale agent.

An agent with experience in short sales will help to expedite your transaction and protect your interests. You don’t want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner.

A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it. You have to be patient as the short sale is worked out with the lender. Some short sales may take up to 90 days or more.

Submit Documentation & Purchase Offer to Lender

Once the seller has accepted your offer, send it to the lender for approval. You do not have a deal until the lender accepts. In addition, the lender will want to see how you will be purchasing the property, and that you have your own loan available and you are pre approved. Our team of experts assist our clients in every step of the transaction.

Myrtle Beach Short Sale

The Jerry Pinkas Short Sale Team
Myrtle Beach, SC 29577
843-222-1926
http://myrtlebeachshortsaleteam.com/

The Intelligent Choice!
* Join the Thousands of homeowners that have successfully avoided Forclosure.
* We can Help You Now!
* No Obligation – Free Consultation
* 843-222-1926

Understand Your Options Before Taking Short Sale Action

Understand Your Options Before Taking Short Sale Action

Many people do not understand the differences between foreclosure and a short sale. Are you a homeowner that has found it difficult to meet your monthly mortgage obligation? If so, you need to understand these two concepts prior to taking action. Some important actions that should be taken prior to making a decision are:

  • Contact your mortgage company and discuss your options
  • Meet with your local real estate consultant (preferably one who specializes in this area)
  • Educate yourself on the potential credit and tax consequences of releasing your home.

As a first step, let’s take a look at what these terms mean:

A Short Sale is when you come to an agreement with your mortgage company to accept less than what you own on your home. In most instances, you the owner need to be proactive in listing your home and selling for at or above what the bank agrees to accept.

A Foreclosure is when the bank takes the proactive legal action against the homeowner when they stop making their payments. In this instance, the deed to the house returns to the lender and allows them to sell the house for any price they can obtain.

What are the specifics of Short Sale vs Foreclosure?

In the case of a short sale, the home owner is given the opportunity to list the home on the market at the CURRENT market value, even if that value is less than what is owned by the mortgagee. At the time the home is listed, all marketing must clearly state that this is a short sale and the bank reserves the right to approve all contracts. A potential buyer is notified that the seller is not in a position to accept any offer without the consent of the mortgage holder. As a seller, you need to be aware that the bank has the option of waiting until several offers have been submitted prior to making any final decision to accept any proposal. Obviously, the bank would like to receive the bulk of the money they have invested in the property.

Why would a bank even consider a short sale? Foreclosures are expensive and if the bank can regain enough of the balance owed to eliminate the foreclosure process, they often come out ahead. Some of the fees incurred with a foreclosure are court fees, realtor fees, attorney fees and tax expenses. This makes a short sale more attractive in some instances.

Before you make any decisions on which choice is best in your specific situation, you will want to consult a real estate professional, your accountant and possibly a tax attorney. Myrtle Beach Short Sale Team specializes in short sales and can give you a good idea of what to expect. Some of the items we can provide for you are:

  • Current Market Value Of Your Home (this is not an appraisal but is based on what is happening in your neighborhood)
  • An estimate of the potential for your home to sell at a specified price
  • Manage the short sale transaction for you
  • Assist you with communicating with the bank
  • Assist with completion of all necessary forms and paperwork necessary for short sale

Your accountant and/or a tax attorney can provide you with advice on any tax consequences from the short sale of your home.

Always consult a professional prior to making any decision on your home. You invested your hard earned money into this home and you deserve to know your options.

Don’t wait until the foreclosure papers are served – it may be too late. Be proactive and give the specialists at Myrtle Beach Short Sales Team a call today.

JP Short Sale Team
854 Jason Blvd Unit G
Myrtle Beach, SC 25577
843-222-1926

Your Myrtle Beach Short Sale Team