Marshall Carrasco Reno's #1 Short Sell Expert www.renohelp.org. Short Sale Process Guide by Marshall Realty. Marshall Realty - Foreclosures and Short Sales in Reno, NV.

1. The Short Sale Process Guide
What is a short sale?
Benefits of a short sale
Why choose Marshall Realty?
Short Sale Vs. Foreclosure
Why walking away is not the answer
Loss mitigation tools for delinquent mortgages
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2. What separates Marshall Realty from the rest is our resources and
contacts. We have developed relationships with Consumer Credit
Affiliates, The Bank of America Reno help center, Wells Fargo Executive
Offices for Loss Mitigation, Senator Reid's Foreclosure Prevention
Taskforce, among others.
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3. • We have direct contacts with Fannie Mae, Freddie Mac, and HUD.
• Our goal has been to become a total resource for homeowner's in the
entire Washoe Valley. Our testimonial page highlights our success.
• Let us put our resources and expertise to work for you.
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4. What is a short sale?
• A short sale is when a home is sold for less than the amount owed to
the lender or lenders.
• The majority of homes in Nevada currently listed or recently sold have
been in the form of a short sale.
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5. Benefits of a short sale
Selling your home for less than what is owed is not an easy decision.
However, if you are in a position where you are extremely upside down
in your mortgage or facing a foreclosure, a short sale may be an option
to consider.
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6. Benefits of a short sale often include
• Less damage to your credit than a foreclosure. A short sale is not
reported on your credit history. A foreclosure is reported and stays on
your credit for up to 10 years.
• A homeowner who successfully negotiates a short sale may be
considered for a Fannie Mae backed mortgage after only 2 years.
• A foreclosure makes the homeowner ineligible for a minimum of 5 years.
• Lenders may consider the sale price as “paid in full” forgiving the
deficiency.
• You can move forward to a brighter financial future in considerably
shorter time.
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7. Why choose Marshall Realty?
• By working with Marshall Realty you will benefit from the experience
of over 4 years in successful short sales. Longer than any other agent
in the Washoe Valley.
• We are familiar with the short sale requirements of each lender.
• Your calls will be answered! You will be kept up to date every step of
the way.
• Your property is listed in MLS and available to all interested buyers.
• You will not have a sign advertising it as a "Short Sale" or
"Pre-foreclosure".
• You never pay a fee. Lenders pay the commission from the proceeds
of the sale.
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8. Short Sale Vs. Foreclosure
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9. Issue 1 Future Fannie Mae Loan- Primary Residence 1
Foreclosure Successful Short Sale
A homeowner who loses a home A homeowner who successfully
to foreclosure is ineligible for a negotiates and closes a short sale will
Fannie Mae-backed mortgage be eligible for a Fannie Mae- backed
for a period of 5years. mortgage after only 2 years.
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10. Issue 2 Future Fannie Mae Loan- Non-Primary2
Foreclosure Successful Short Sale
An investor who allows a There is no similar declaration or
property to go to foreclosure is question regarding a short sale.
ineligible for a Fannie
Mae-backed investment
mortgage for a period of 7 years.
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11. Issue 3 Credit Score
Foreclosure Successful Short Sale
• Score may be lowered • Only late payments on a mortgage
anywhere from 250 to more will show, and after sale, mortgage
than 300 points. is normally reported as 'paid as
• Typically will affect a credit agreed', 'paid as negotiated', or
score for over 3 years. 'settled'.
• This can lower the score as little as
50 points if all of the other
payments are being made.
• A shore sale's effect can be as brief
as 12 to 18 months.
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12. Issue 4 Credit History
Foreclosure Successful Short Sale
Foreclosure will remain as a • A short sale is not reported on a
public record permanently, and credit history.
on a person's credit history for • There is no specific reporting item
10 years or more. for 'short sale'.
• The loan is typically reported 'paid
in full, settled'.
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13. Issue 5 Security Clearance
Foreclosure Successful Short Sale
• Foreclosure is the most On its own, a short sale does not
challenging issue against a challenge most security clearances.
security clearance outside a
serious misdemeanor or
felony conviction.
• If a client has a foreclosure
and is a police officer, in the
military, in the CIA, security,
or any other position that
requires a security clearance,
in almost all cases clearance
will be revoked and position
will be terminated.
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14. Issue 6 Current Employment
Foreclosure Successful Short Sale
• Employers have the right and A short sale is not reported on a
are actively checking the credit report and therefore not a
credit of all employees who challenge to employment.
are in sensitive positions.
• In many cases, a foreclosure is
reason for immediate
reassignment or termination.
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15. Issue 7 Future Employment
Foreclosure Successful Short Sale
• Many employers are requiring A short sale is not reported on a
credit checks on all job credit report and is therefore not a
applicants. challenge to future employment.
• A foreclosure is one of the
most detrimental credit items
an applicant can have and in
most cases will challenge
employment.
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16. Issue 8 Deficiency Judgment (Not Applicable in California)
Foreclosure Successful Short Sale
In 100% of foreclosures (except In some successful short sales, it is
in those states where there is possible to convince the lender to
no deficiency), the bank has the give up the right to pursue a
right to pursue a deficiency deficiency judgment against the
judgment. homeowner.
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17. Issue 9 Deficiency Judgment (amount)
Foreclosure Successful Short Sale
• In a foreclosure, the home will In a properly managed short sale, the
have to go through an REO home is sold at a price that should be
process it does not sell at close to market value, and in almost
auction. all cases will be better than an REO
• In most cases this will result in sale resulting in a lower deficiency.
a lower sales price and longer
time to sale in a declining
market.
• This will result in a higher
possible deficiency judgment.
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18. Why walking away is not the answer
• Recently, there have been reports claiming that a "strategic default"
can be an appropriate and even beneficial reaction to an upside-down
mortgage or impending foreclosure.
• While this idea has spread rapidly, the truth is that a default is never
an easy road to choose, and rarely is it ever strategic.
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19. Why walking away is not the answer (cont.)
• In fact, defaulting on your mortgage can be incredibly dangerous and
irresponsible when handling the financial future of you and your
family.
• Unfortunately, the ramifications of a "strategic default" are rarely-if
ever-explained, leaving many homeowners stranded on an island of
misinformation.
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20. Why walking away is not the answer (cont.)
If this is your situation, first understand that you are not alone. Millions
of homeowners nationwide are in similar circumstances. The only
difference between them and you is that you're looking for answers
...contacting Marshall Realty is a great place to start!
The best part is, we never charge our clients a fee, ever!
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21. Loss mitigation tools for delinquent mortgages
Conventional Mortgage - Repayment Plan
Allows you to make a regular full payment plus a portion of the delinquency
each month over a period of months to cure the delinquency.
FHA Mortgage - Repayment Plan
Allows you to make a regular full payment plus a portion of the delinquency
each month over a period of months to cure the delinquency.
VA Mortgage - Repayment Plan
Allows you to make a regular full payment plus a portion of the delinquency
each month over a period of months to cure the delinquency.
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22. Conventional Mortgage - Loan Modification
A lender may consider adding the delinquent amount to your principal
balance, which may reinstate your loan. A change in interest rate and/or the
loan term may also be considered.
FHA Mortgage - Loan Modification
The delinquency amount is added to your principal balance, which may result
in fully reinstating your loan. A change in interest rate and/or the loan term
may also be considered. Late, foreclosure, attorney fees may be waived.
VA Mortgage - Loan Modification
The delinquency is added to your loan balance in order to bring your loan
current. The interest rate and terms may be modified.
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23. Conventional Mortgage - Forbearance
Suspended or partial payments for a short period of time followed by
repayment plan, modification, reinstatement, or full pay off. You must prove
your hardship is temporary and will resume ability to pay mortgage.
FHA Mortgage - Forbearance
Suspended or partial payments for a short period of time followed by
repayment plan, modification, reinstatement, or full pay off. You must prove
your hardship is temporary and will resume ability to pay mortgage.
VA Mortgage - Forbearance/Repayment Schedule
Allows the repayment of part of the delinquency each month along with your
regular mortgage payment. If you are temporarily unable to meet your
mortgage payment, suspended or partial payments may be accepted until you
have the ability to resume the payment schedule.
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24. Conventional Mortgage - Short Sale/Pre foreclosure sale
Allows the borrower to sell the house and use the proceeds to satisfy the
mortgage debt even if the proceeds are less than the amount owed.
FHA Mortgage - Partial Claim
Your lender may work with you to obtain a one-time payment from the
FHA-Insurance Fund to reinstate your loan. You must be at least 4 months
delinquent and able to make full mortgage payments. You will execute a
promissory note & subordinate mortgage payable to HUD. This note carries no
interest & is payable at time of home sale or refinance.
VA Mortgage - Refunding
If you have the ability to make mortgage payments or will have the ability in
the future, but your lender has decided it cannot extend further forbearance
or a repayment plan, VA may buy a loan from the lender and take over the
service.
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25. Conventional Mortgage - Deed-in-lieu of foreclosure
If you are not eligible or failed at other Loss Mitigation Tools, including a Short
Sale, you could voluntarily deed or surrender your property to HUD in
exchange for a release from all obligations under the mortgage.
FHA Mortgage - Short Sale/Pre foreclosure sale
Allows the borrower to sell the house and use the proceeds to satisfy the
mortgage debt even if the proceeds are less than the amount owed.
VA Mortgage – Deed-in-lieu of foreclosure
If there are no liens on the property and VA agrees, you will sign legal documents
to make VA the owner of your property. VA will have to pay your lender a claim
for the difference between the value of your home and the mortgage balance. If a
deed is accepted, you may be released from further liability or asked to repay the
government for all or part of the claim VA paid.
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26. Conventional Mortgage
Lender participation is voluntary. These programs are subject to lender/service
approval. Lenders are not mandated to provide these options. Each lender has
qualifying criteria a borrower must meet before they will consider offering
these Loss Mitigation Tools. Please contact your lender for a workout packet to
apply for delinquency.
FHA Mortgage - Short Sale/Pre foreclosure sale
If you are not eligible or failed at other Loss Mitigation Tools, including a Short
Sale, you could voluntarily deed or surrender your property to HUD in
exchange for a release from all obligations under the mortgage. There must be
no liens on the property.
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27. • Trying to figure out the best solution to your problem can be very
frustrating and overwhelming.
• We offer resources completely FREE!
• Don't wait until it's too late and more importantly DO NOT PAY
anyone to help you and your family.
• Let us help you find the best resource for you.
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28. Contact MARSHALL CARRASCO
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9740 S. McCarran Blvd #103, Reno,
NV 89523
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