I am a short sale expert and I am here to help!
Call me now at 971-222-3435
Chances are that, if you bought a property sometime within the last couple of years, that property has lost value. Like most people in this situation, you may have lost equity. If you have an adjustable mortgage, your payments may even soon increase. It may even be that the property is worth less than what is owed on it. This is a common situation. I am an expert in resolving this type of situation.
Call me at 971-222-3435 or email me at oscar@bestshortsales.com
Is a Short Sale For You?
If you don't want the property any longer, can't possibly make the payments and truly want to sell, you should look into selling your property in a Short Sale. Learn more
What is a Short Sale?
A short sale is an arrangement in which the property owner sells a property for less than what is owed. I am an expert in this. You get out from under the property in the best possible terms. Learn more
How much does a Short Sale Cost?
NOTHING
•· I, along with my team, do all the work.
•· The bank pays us from the sale proceeds.
•· All you do is cooperate.
What is Oscar's Experience?
Oscar has been doing short sales since 2004. He is a national speaker and trainer. He is the author of Short Sales A-Z Online Video Course, one of the most comprehensive short sale courses available. In addition, he is an investor and agent with Century 21, licensed in Oregon and Washington. Learn more.
Should I Just Disregard A Foreclosure Situation?
No!
In most instances, ignoring a foreclosure situation will magnify your problems. If you are facing foreclosure, it is not really the foreclosure what will damage you most, but the post foreclosure effects. In most cases the situation gets even worse after the foreclosure. You may end up owing on the property and your credit rating will be terribly damaged. This can take years and lots of grief to resolve. If un-attended, there will be no end to it. That why it is so important to handle this carefully. Contact me, I can help you.
What are the Benefits of a Short Sale?
To name a few, these are the main benefits of doing a short sale.
•· Remain on top of the situation. Don't let things get out of control.
•· Come out in the most favorable terms possible.
•· Reduced credit damage. This is key!
•· Debt reduction. In most circumstances, if done well, debt burden is reduced.
•· Minimized post foreclosure problems with creditors. You may still owe after the foreclosure.
Call me at 971-222-3435, email me at oscar@bestshortsales.com or complete the form below and you will be contacted.
Learn More About Short Sales
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Short Payoff Outcomes
This is critical information. If you are about to be engaged in a short sale transaction you MUST understand this important fact: Short sales are type of short payoff outcome.
The term short sale is loosely used to refer to any negotiation in which a secured creditor accepts as payment less than what is owed. The terms of this acceptance have distinctive debt relief, collection and tax implications. This brief article explains this critical subject.
Note: For precision, in this article professional level terminology is used.
Short Payoffs
In real estate, a short payoff is an arrangement in which a secured creditor releases its interest in a property that is collateral for debt, by accepting less than full payment. Since the creditor is getting paid short of the full debt payoff, this phenomenon is called a short payoff.
There are two types of short payoffs: Short Sale & Release of Lien. Although they are similar, these two types of short payoff are extremely different.
Short Sale: In a short sale a creditor accepts less than full payoff for the debt, releases it interest in the property and forgives the debtor for any short fall. The property owner no longer owes anything to the creditor. Because of this, a short sale is debt relief. According to the IRS, debt relief is financial betterment. Therefore a short sale is a taxable event. Because of this, and to be able write off the loss, the creditor will issue the property owner an IRS 1099 C, Cancelation of Debt. Typically, if the property owner is insolvent, and with the use of a good CPA, there is no increase in tax burden to the property owner. The debtor should also look at the Mortgage Debt Relief Act
Release of Lien: In a release of lien, the creditor releases its interest on a property for less than owed, but does not forgive the unpaid debt caused by the short fall. The property owner still owes to the creditor. Typically the property owner and the creditor arrange for some sort of payment plan. A release of lien is not debt forgiveness, so there is no 1099. However, the property owner will no longer be able to apply debt payment interests as tax write-off.
Off course most property owners prefer a short sale over a release of lien; however that is not always possible. The type of short payoff available to the property owner depends mostly on the property owner's financial situation, ability to pay, and how easy a collections target the debtor is.
By far, the most common type of short payoff is the release of lien. The term short sale is liberally use in reference to any type of short pay off. As such, the fact that someone mentions the term "short sale", does not necessarily mean a true short sale. Through the years this has led to plenty of disappointment, disputes, personal financial disasters and a bad end to lots real estate careers.
When Short Sale? When Release of Lien?
Whether a property owner will get a short sale or a release of lien depends on the type of debt secured by the property and the chances of the creditor successfully collecting the debt.
When a Short Sale: Typically a creditor will allow the short sale of a property when it is impossible, or very difficult to collect any further funds from a debtor. This extreme example illustrates the situation. An older property owner, now living on social security income, in a rented apartment, and just discharged from bankruptcy Chapter 7 is impossible to collect on. In this case creditor will either approve a short sale or foreclose.
When a Release of Lien: Typically a creditor will insist on a release of lien if the debtor has present and/or future ability to pay, and is a good collections target. This extreme example clearly illustrates matters. A younger doctor going through a nasty divorce may presently be totally insolvent. However, as soon as the divorce situation is resolved, chances are that the doctor will be financially fit again. So he will have ability to pay. Not only that, for a collections company, such a professional is easy to locate and harass. It would be very easy for a collector to attempt garnishing wages. To make it worse, such actions can have huge negative effects in the doctor's career (increase insurance premiums, stigma, etc). Therefore, most likely the young doctor will end up only with a release of lien, and most likely be almost happy to make payments.
Most releases of lien take place with cash-out second mortgages and home equity lines of credit (HELOC). In these cases, typically the creditor with the first mortgage forecloses, gets paid most of the debt at foreclosure sale or ends up owning the property. After the foreclosure, the junior creditors (second mortgage, HELOC, etc), are no longer secured by the property. However, the property owner still remains indebted to these creditors. These creditors will attempt to collect. Collection efforts will be aggressive if the size of the debt is large enough, and the chances of collecting of very good. So going back to the extreme example of the young doctor, such individual has no escape. He will be collected anyway. The question is how. With a release of lien, the young doctor will right away be in a payment plan he can handle. With a foreclosure, the young doctor will be chased by aggressive collectors. For a professional like him, with a lot to lose, this would be a terrible situation.
Hopefully this article clearly illustrates short payoffs. I used extreme examples because they are easier to visualize. Most individuals fall in a category somewhere between these two extremes. Just remember: A short payoff is when the creditor lets the debtor sell for less than what is owed. In the short sale the remaining debt is forgiven. In the release of lien it is not.
Copyright Reserved
Oscar Morante, Advanced Real Estate Concepts, LLC
Un-authorized reproduction prohibited
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Friends:
Below is a transcript of the federal mortgage debt relief act. This is something every short sale professioanal should know about. I have also included the HUD link.
Oscar
Federal Law & Resources
Housing & Urban Development Department (HUD)
Mortgage Debt Relief Act
Text Copied From IRS Site
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Mortgage Forgiveness Debt Relief Act |
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Should I Short Sale?
A short sale is a transaction in which the homeowner sells a property for less than what is owed. The lenders voluntarily take a loss, and forgive the unpaid portion of the debt. Shortsales only take place when the value of the property is less than what is owed to the lender, and the owner is insolvent. A property worth less than what is owed is "over-mortgaged".
A short sale is right when an insolvent homeowner in default owes more to a lender than what the property is worth. The homeowner has to be unable to ever for the complete loan balance. In these circumstances, the lender is in the unfortunate position of facing losses regardless. For the lender, foreclosure will not bring enough funds to payoff the debt. In addition, collecting losses from a foreclosed and insolvent homeowner is a difficult proposition. Because of this, the lender is better off forgiving the debt.
Based on the explanation above, a shortsale is right for the homeowner if:
Short sales are not an alternative for the homeowner if:
Under the circumstances just mentioned, most lenders will not allow a short sale. Lenders do not forgive debt from homeowners with present or future payment capacity. A good alternative for a homeowner in this position is a release of lien. In a release of lien, the property is sold for less than what is owed, but the homeowner still owes to the lender. To pay for that balance, the homeowner enters into a payment plan.
For the lender, foreclosures are hostile, lengthy and costly transactions. Shortsales are faster, more amiable, and have a lower cost. Because of this, lenders facing insolvent homeowners with over-mortgaged properties commonly accept short sales. If the homeowner can in any way pay, the lender will typically only allow a release of lien. If a short sale is not an option for the homeowner, most likely a release of lien is. A foreclosure is almost always a bad choice.
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What is a Short Sale
A real estate short sale is the sale of a property for less than what is owed on it. The lenders voluntarily accept less than full payment and forgive the unpaid balance.This happens when a property is worth less than what is owed, the owner is insolvent, and can't make up the difference. In the sale of the property, a lender is paid off with a dollar value short of what it is owed, thus the term short sale. This article briefly explains why this happens and why they are so common.
The root of this issue is in collateralization. The vast majority of properties are purchased with the aid of financing. In order to pay for a property, a homeowner places a small down payment. Since the down payment is not sufficient to purchase the property, a loan is used to pay the remainder of the acquisition value. In other words, the homeowner finances part of the purchase value of the property with a loan from a lender. To guarantee payment, the homeowner pledges the property as collateral. This is called collateralization. This is an agreement between the owner and the lender, such that in case of default, the lender has the right to dispose of the property in order to get paid. In the U.S., properties are collateralized by trust deed, mortgage, and security deed. The term "mortgage" is generic.
Complete and timely payments incrementally reduce the loan payoff value. That is called amortization. The longer payments are made, the more amortized the loan becomes. A fully amortized loan is a loan with zero balance and paid off. On the other hand, because of interest, missed payments increase the loan payoff. That is called accrual.
At sale, unless the loan is fully amortized, the homeowner needs to payoff the remaining debt balance. If the property sale value is high enough, the proceeds of the sale will be sufficient to pay off the loan and for the homeowner to earn a profit or break even. If not, there will be a shortfall. To make up for this shortfall, either the homeowner will have to make up for the amount needed to pay off the loan, or the creditor will have to take less than the amount owed.
A property worth less than what is owed is "over-mortgaged". The main reasons properties become over-mortgaged include the owner paying too much, refinancing for too much, market decline, damage, deferred maintenance, negative neighborhood changes and disasters.
Often, owners of over-mortgaged properties needing to sell are unable to make up for the loan payment shortfall. It gets worse if they are insolvent. Usually, seeing only losses, they sooner or later get discouraged and become uncommitted to the property. This leads to default. Once this happens, it gets worse. The loan starts to accrue. Unpaid property taxes, utilities, and other costs also accumulate. In addition, usually maintenance is deferred. The property may even be abandoned. This results in further loss of value.
Once the property enters into this cycle, it becomes the lender's problem. The longer it passes, the worse it gets. Urgently, the lender needs to recover as much of the debt as possible. Lenders in this situation have only two alternatives. One of them is to foreclose. The other is to allow the homeowner to sell the property for less than what is owed. This is a shortsale. Either way, the creditor will take a loss.
Unless the property value is high enough, a lender that decides to foreclose only stands to lose. Only cash-in-hand investors looking for great deals buy at foreclosure sales. If the property is not sold at a significant enough discount, the creditor will have to keep the property. If this happens, the creditor will be liable for maintaining the property, insuring it, paying taxes, and many other costs. Not only that, to sell it, the lender will have to pay commissions!
Foreclosures are costly, lengthy and hostile transactions. Even in an appreciating market, every day the property is worth less. Once in foreclosure, the property enters a legal limbo full of risks for the lender. Hopefully, the homeowner stays until shortly before the foreclosure, does not damage the property and leaves amiably. However, there is a high chance that the homeowner will abandon the property. Vandalism often follows. If neither happens, it is because the homeowner wants to stay longer. These homeowners usually file for bankruptcy. The result is a longer foreclosure and further loss to the lender.
Shortsales are lower cost, shorter and more amiable transactions. They are a much less risky alternative to foreclosure because most of the above mentioned problems are avoided. The insolvent homeowner sells the property for less than what is owed. The lender gets paid off sooner and forgives any debt shortfall. That is a short sale. That is why they happen and why they are so common.
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Oscar's Library of Short Sale Video Lessons & Downloads
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www.BestShortSales.com 9220 SW Barbur Blvd Suite 119 - Box 159 Portland, Or 97219
Credentials:
Oscar is among many real estate professionals who are closely tracking the looming indebtedness of American property owners. Oscar, however, sees things a little differently that most. After studying the process of how people go into debt and end up losing their homes through foreclosure (only to be left with mountains of debt), Oscar started a crusade to help distressed property owners save their credit and dignity. He does this by negotiating reduced settlement payoffs with the lenders. "It happens a lot," says Oscar. "Good, hard-working people just run into trouble for a lot of reasons".
Relaxed banking regulations, ambitious lending practices, uninsured property damage, personal life changes or a myriad of other causes can contribute to a property owner becoming over-mortgaged. In other words, property owners end up owing more than their property is worth and can't keep up with payments.
After seeing a sharp decline in architectural work in the Portland, Oregon area after 2001, Oscar was compelled to make a drastic career change. With little money of his own, Oscar began relentlessly researching every aspect of the local real estate market attending seminars, reading books and talking to everyone he knew that had anything to do with real estate. He found that his most lucrative opportunities lay in the complex situations that arose when over-mortgaged properties were headed into foreclosure. Oscar has been actively involved in real estate acquisition through short sale negotiations with lenders since 2003.
Oscar is well aware of the vulnerability of people in financial trouble and detests those who make a business out of deceptive tactics to obtain distressed properties. Some say it is a fine line, but the pile of thank you notes and referral letters from property owners he has helped clearly indicate that his "win-win" philosophy works. He is now teaching others through his information-packed Short Sales A-Z Online Video Course. In this course he shows others how to skillfully negotiate with lenders into settling for less to avoid costly foreclosure.
Oscar Morante holds a Bachelor of Architecture degree from Virginia Tech. Oscar recalls his early passion for buildings and ships and knew he really wanted to be an architect after a brief attempt at pursuing Economics at the impressionable age of sixteen. His early beginnings provided him with unique opportunities to visit and live abroad. His father, a Peruvian Navy Captain, moved his family from the United States to Tokyo, Japan when Oscar was eight years old. While living there, he noticed the architecture; perhaps he made mental notes which would later influence his architectural sensibilities.
When he was age ten, his family moved to Lima, Peru where Oscar would spend the next 10 years discovering himself. In Lima, he pursued his love for the outdoors and adventure. He climbed Macchu Picchu, and immersed himself in Peruvian culture. Today, 20 years later, he still speaks with a Peruvian accent. Oscar says of himself, "I am always trying to get better. I am never tired of making changes. Of course, I want to minimize the things that I do that cause me to have regrets. I don't want to have regrets for not having done something, for not taking a chance, for not making a change."
Oscar is familiar with making changes, whether it is life changes, or career changes; Oscar always seeks to discover something new about himself in the process of adapting to the changes he has made. After graduating from Virginia Tech, Oscar moved to Seattle, Washington. One of his brothers lived there and he decided that, yes, a change of scenery would be good. He quickly found a position as an entry-level architect in a local firm and set out to do what he loved to do. He discovered, despite the long and arduous hours that he worked for the firm, that the county, or the city, presented obstacles for him that sometimes could not be overcome. He contemplated seriously whether or not his ideal of architecture and design would ever fit into the reality of work.
After months of frustration, Oscar decided to make a change. He decided to become a River Guide. He moved to Costa Rica and became certified to lead both Class 3 and Class 4 rivers. He guided tours on average 300 river days, covering the Pacuare and Reventazon River in Costa Rica and the Arkansas River and Royal Gorge, the Cheat River and Wenatchee River in the United States. Oscar loved the thrill and adventure that river guiding provided.
Oscar, always philosophizing, likened the river to life. With its bends and currents, one still needed to plan ahead. A year away from the office and far from the field of Architecture, Oscar realized, he needed to plan for the future. River guiding was a wonderful experience; he had no regrets, yet he was busy making other plans. Today Oscar is still an avid outdoorsman. He skis just about every winter and spring weekend. In the summer, he and his wife Mishelle, enjoy climbing in the Cascade Mountains of Oregon and Washington. At least once a year they travel to another country.
In the late 1990's Oscar moved to Portland and established a stable of clients as a freelance architect and practiced his trade in Oregon and Washington. He later got married and decided to explore real estate. This was not, he explained, a far departure from Architecture. In the midst of his research into the world of real estate investing, he joined several real estate associations and began networking. He learned a great deal about creative financing, how to talk to clients, how to look for real estate deals, and before long, Oscar began combining his knowledge and zest for yet another adventure.
Ever since he started in real estate, Oscar's focus has been in the pre-foreclosure market. When he started in 2003, there was plenty of business. Then, at the peak of the real estate bubble, there were fewer deals but were easier to flip. Now, at the end of 2008, when this bio was last updated, and for the foreseeable future, the majority of the real estate market is distressed property. Because of this, Oscar decided to become a real estate agent as well. He believes that to succeed in real estate, a professional needs to have as many options as possible. For him, to be a licensed agent at the same time as an investor is a plus. According to him, "it is about either being an agent or an investor, it is about being effective, and act according to the situation"...the main thing is to provide win - win - win solutions to resolve a situation. Sometimes it is better to act as an investor, others to act as an agent..." Oscar adds that the distressed property and short sales business is about "earning well by helping others, not inheriting problems".
Oscar's has a saying:
"In real estate, the more you learn, the more you earn"
Oscar believes that real estate, to a large degree, is a knowledge business. That is why Oscar is always in a quest to learn more and be more capable. It is very important to be up-to-date with the skills needed to succeed in whatever the current market conditions are. For Oscar two things are needed to become good at something:
In addition to all of the above, it is very important to mention Oscar is not only extremely capable; he is very pleasant to work with. You will greatly enjoy doing business with him as client, investment partner or student of one of his courses. If you need to reach him contact at oscar@bestshortsales.com.
Advanced Real Estate Concepts, LLC was founded by Oscar Morante in 2004. The company's mission is to acquire over-mortgaged properties that have gone into pre-foreclosure by getting lenders to discount debt in order to mitigate risk of loss at auction. Oscar has developed proven techniques and strategies for success through short sales investing.
While continuing to develop his real estate business, Oscar is sharing his success with others through his educational seminars. Oscar's Short-Sales A-Z seminar was developed based on practical experience and dedication to solving problems.
Based on overwhelming demand, Oscar has developed Short Sales A-Z Online. This brand new class provides you with in depth knowledge and step-by-step instruction on how to perform profitable short sales. Now you will be able to learn the art and science of short sales from any time you want, and from the comfort of your home and office. Access to the online class will be any time you want for as many times as you need. You will learn immediately how to increase your earnings by applying this high demand expertise.
Details and an Exclusive Discount Offer Coming Soon!
Short Sales A-Z Online is for the serious foreclosure real estate professional. Among the main subjects of this seminar you will learn:
SAVE TIME & GAIN VALUABLE KNOWLEDGE
with Oscar's Short Sale Products
Short Sales A-Z Online Video Course
Oscar can help out anyone across the country who wants to learn how to successfully execute a Short Sale.
Visit his Short Sale Website full of <a href=http://www.bestshortsales.com/>Short Sale Resources</a>
Oscar,
Warm greetings! I am writing to ask for permission to reprint the article: UNDERSTAND THE UNDERLYING CAUSES OF FORECLOSURE recently posted on church blessings.com. I was hoping to hand it to the families in our church that might benefit from it. I will indicate the source of the article if allowed to reprint it. I look forward to your response.
Warmly, Kevin Gushiken
Oscar,
Your seminar in short sale was great! I enjoyed it.
Thanks,
Roger Guo
Power Player 3
Good course on Friday ! thanks very much !
Cheers, Rob Wakefield
Investor and Real Estate Agent, San Diego, CA
Oscar,
I sincerely enjoyed the class this last Friday and learned quite a lot.
Looking forward to using the knowledge. Thank you so much.
-- Carolynn Patterson, Investsor, Los Angeles, Ca
Hello Oscar
Thank you so much. I really learned more than I imagined You were very informative, professional and entertaining. My team and I are much more encouraged to begin and complete a successful short sale. I will certainly keep you posted. Once again thank you for teaching us something of great business value.
Best Regards,
Lisa Amorim, Real Estate Broker, PLATINUM ESTATES, Burbank, Ca
Hi Oscar,
Thanks for the wonderful course in Tigard a couple weeks back. As we mentioned at the seminar, my partners and I are working on our first short sale.
-- Mario, Rick, and I all thank you very much for the great seminar!
Sean Pennington, Columbia First Mortgage, Inc., Vancouver, WA 98682
Dear Oscar,
Thank you so much for your short sale class. It was very informative and helpful. I look forward to seeing you in the future.
Jonathan Hirai, On Realty Home Loans, Sausalito, Ca
Hello Oscar,
Your class was amazing, I enjoyed it very much. It was extremely informative and eye opening...You have an incredible amount of knowledge in the short sale market. I think you are an incredible instructor. You made a very dry subject very interesting, most instructors can not accomplish that.
Congrats! Katherine
I just wanteed to drop a note to let you know that I truly enjoyed your insightful seminar. Now I feel very comfortable with the process of short sale and I plan on maintaining contact with you.
Jesse Rosette - Real Estate Agent
Oackland, Ca
Oscar,
Great course. Excellent application to real estate brokers and investors both. I liked the exchange of dialogue.
Scott Vorous - Real Estate Investor
Cour D'Alene, Idaho
Oscar did a great job and was very knowledgeable about the subject.
R Jay Ward - Real Estate Agent
Burley, Idaho
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