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Sergio Rebollo Jr.

Short Sale vs. Foreclosure: The Pros and Cons

1. Minimize The Damage To Your Credit A Short Sale will affect your credit but not as detrimental as a Foreclosure will. A Foreclosure comes with a Final Judgment which remains on your credit report for 7 years. A Short Sale usually is reported as a “settled” account on your credit report. By maintaining prompt payments on other credit lines and diligently working on improving your credit score, you may be able to rebound to a decent credit score within a couple of years.

2. Your Personal Well Being Experiencing a Foreclosure can be emotionally disheartening. The feeling of losing your home to the bank or possible eviction by a bank can lead to many sleepless nights or even tension within your family. Living with the effects of the Final Judgement or Foreclosure on your credit report for 7 years will require possible explanations whenever you apply for credit. A Foreclosure can be mentally devastating.

A Short Sale, handled by a Short Sale Realtor, is the sale of your property just like any other real estate transaction except it takes much longer due to the negotiated settlement process required with the bank. You do not get evicted from your home. You sell your home with a pre-determined closing date just like any other real estate transaction. Most importantly, there is no need for any explanations why you lost your home in a Foreclosure!

3. You Can Buy Another Home Within 2 to 3 Years If you do a Short Sale and as long as you maintain yourself current on all of your credit obligations, you will be able to purchase another home within a couple of years. This housing crisis will still take some time to recover if not recover. Focus on re-establishing your credit score and you will be able to take advantage of today’s rock bottom real estate prices. Home prices should remain this low for the next few years.

Sergio Rebollo Jr.
Short Sale Specialist
Real Estate TeamMates
www.SergioRebollo.com
305-582-4062



Mortgage Assistance Relief Services Disclosure
Real Estate TeamMates assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. Real Estate TeamMates is not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage you could lose your home and damage your credit.

Miami Realtor: Placing An Offer On Miami Foreclosure Listings

Tired of Submitting Offers on Foreclosures and None Get Accepted?

If you are trying to purchase a foreclosure in the Miami area and can't seem to be the winning bid it may not be that you are being out bid or that there seems to be preferrential treatment with other selling Agents.

How Are You Formulating Your Offers?

Are you using an experienced Realtorhelping you formulate the offer? Are you dictating to the Realtor what to write the offer for based on the listing price? Because it is a foreclosure or a "distressed sale" are you formulating offers at 10% to 20% below the asking price? Just because banks must be eager to get rid of the property it doesn't mean that they themselves have not done their homework on the current market value of that property? You must do your homework also! If you're not using a qualified Realtor to help you structure your offer you may not realize that this in fact could be the reason why you are not getting your offers accepted.

Bank Owned May Not Necessarily Mean That You Can Buy It At A Steal.

Banks want to move their inventory and many of them do in fact place their properties on the market at an aggressive selling price. A qualified Realtor will not only help you identify what is priced right, but he or she should be able to help you formulate your "highest and best" offer. Highest and best offer or strongest may not necessarily mean the highest offer submitted is what the bank will accept. Highest and best encompasses offer amount, deposit or escrow amount, cash offer or financed and if financed, how much financing or the type of financing. Each of these aspects is considered by the asset manager when making a decision.

Lots of the bank owned property on the market is in a multiple offer situation. It is not uncommon for a well priced home to get 5, 6 or 10 offers within the first few days on the market. In these cases, it is very common to see offers for more than the listed price. A qualified Realtor can help you formulate your highest and best offer and after a couple of attempts, you should have one accepted!!

Sergio Rebollo Jr.
www.SergioRebollo.com
305-582-4062



Mortgage Assistance Relief Services Disclosure
Real Estate TeamMates assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. Real Estate TeamMates is not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage you could lose your home and damage your credit.

Miami Realtor: Preguntas Mas Frequentes Sobre Venta Corta

PREGUNTAS MAS FRECUENTES SOBRE VENTA CORTA

¿Que significa una Venta Corta o Pre Foreclosure Sale?

Una venta corta es cuando un prestamista acepta un descuento en una hipoteca para evitar una subasta o una bancarrota posible de la ejecución de una hipoteca. Mientras la propiedad está en transmite de compra, la aprobación del prestamista del contrato y de los términos llega a ser necesaria como deben aprobar la propiedad descontada. Por ejemplo...un dueño de una casa tiene una hipoteca existente de $300.000. El comprador escribe una oferta de $220.000, esta oferta es aceptada como pago completo del préstamo. Esto es una VENTA CORTA.

Es mejor hacer una venta corta cuando la propiedad está en el estado de la PRE-ejecución de una hipoteca porque a los bancos no les conviene tener exceso de inventario de préstamos y menos cuando son, préstamos negativos en sus libros.

¿Qué sucede al crédito del vendedor cuando hace una venta corta?

Lo qué sucede típicamente es que en el informe de crédito el préstamo demostrará haber sido “pagado”. Sin embargo, habrá una notación que indique “préstamo pagado a menos del valor original” o algo por estas líneas. Es más favorable que un dueño de una casa entre a venta corta que tener una ejecución de una hipoteca en su informe de crédito.

¿Puede un dueño beneficiarse de una venta corta?

El vendedor no puede beneficiarse (con dinero) de una venta corta de la PRE-ejecución de una hipoteca.

¿Cómo pueden afectar las bancarrotas en las posibilidades de hacer una venta corta?

La mayoría de prestamistas de hipotecas no considerarán una venta corta si el dueño de una casa está en bancarrota porque negociar una rentabilidad de venta corta es considera una actividad de colección. Las actividades de colección se prohíben durante una bancarrota.

¿Cuando un dueño de propiedad ya esta en el proceso de la PRE-ejecución de una hipoteca, cuando es lo mas tarde que se puede comenzar una venta corta o el proceso de reducir el préstamo original que se debe en la hipoteca?

Estando en el proceso de PRE-ejecución permita por lo menos 90 días para que se efectúe una hipoteca aprobada y pueda poner la propiedad en venta corta.

*Siempre consulte con su contador acerca de posibles responsabilidades de impuestos

Sergio Rebollo Jr.
Especialista Venta Corta
Real Estate TeamMates
www.SergioRebollo.com



Mortgage Assistance Relief Services Disclosure
Real Estate TeamMates assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. Real Estate TeamMates is not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage you could lose your home and damage your credit.

Miami Realtor: Comprando Casas Reposeidas En Miami

Un Buen Momento Para Comprar Casas Reposeidas En Miami.

La crisis hipotecaria actual ha hecho que las personas que poseen buenos ahorros de dinero eviten invertirlo en la compra de propiedades debido a la incertidumbre actual del mercado. En el mes de Febrero el volumen de ventas de casas subió más de un 5% sobre el mes de Enero. Este es el aumento más grande que se ha visto en los últimos 6 años.

Los Realtors en Miami están viendo un nuevo movimiento de compra y venta.

Debido a los precios tan bajos que existen generados por la crisis económica hay muchos compradores que con la ayuda del FHA están comprando su primera casa. También hay muchos inversionistas que reconocen que estos precios bajos van a aumentar de nuevo cuando los bancos empiecen hacer prestamos de nuevo.

Mas de 1000 casas reposeídas.

Son más de 1000 propiedades reposeídas en la ciudad de Miami que se encuentran a la venta en el día de hoy. Para comprar una casa reposeída necesita un Realtor que lo ayude determinar la mejor compra posible dentro de las necesidades cual usted busca.

Mucha precaución.....

Para buscar una buena compra usted no tiene que pagar ningún dinero para tener acceso a estas listas. En el sitio web www.SergioRebollo.com usted puede buscar sin costo ninguno por el inventario completo de casas y condominium en la ciudad de Miami.

Sergio Rebollo Jr.
Real Estate TeamMates
www.SergioRebollo.com
305-582-4062



Mortgage Assistance Relief Services Disclosure
Real Estate TeamMates assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. Real Estate TeamMates is not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage you could lose your home and damage your credit.

Miami Realtor: How Does A Short Sale Affect My Credit?

Homeowners facing foreclosure have a number of options, one of which is doing a short sale. Some people, depending on their situation, may allow a property to go into foreclosure instead of attempting a short sale. One reason is they don't have any expectations of saving the property so walking away is an easy solution. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. The primary consideration above all is the affect both can have on your credit score.

The Basics Of A Short Sale
The concept of a short sale is fairly simple. A short sale occurs when the sale proceeds of a property fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. A few words of warning are in order. Not every lender will negotiate a short sale. If for example your payments are current, yet you foresee imminent cash flow problems arising that will affect your ability to make your monthly mortgage payment. Lenders may not negotiate unless your payments are several months late or your need to sell is due to relocation. Another consideration is you may be held liable for taxes on the difference between the sale amount and the original loan amount. If the property is your primary residence the tax liability for the mortgage forgiveness may be waived. Short sales require nerves of steel.

The Credit Affects
Foreclosure
Without a doubt sellers will incur more damage on their credit report by going through foreclosure. Typically your credit score will take plunge between 200 to 300 points.

Short Sale
Short sales have a far less damaging affect on a seller's credit report. Credit scores typically lose between 100 to 150 points. What happens to your credit down the road? It is takes around three years after a foreclosure before a lender will offer a sensible interest rate, whereas for a person who went through a short sale typically waits around 18 to 24 months to buy another home at a good interest rate.

Salvaging your credit should always be the primary concern when making the decision between a short sale and foreclosure.

Sergio Rebollo
Miami Short Sale Specialist
Real Estate TeamMates
www.SergioRebollo.com