The Real Estate Auction

The Real Estate Auction

auctionThe real estate auction or foreclosure auction can be a very rewarding place for those that do their homework. There are huge investment opportunities with discounts as much as fifty cents on the dollar. When buying foreclosures at the auction, it’s critical to know the steps involved so you’ll have a good experience.

Keith Wenger of Imperial has successfully purchased and resold over 100 hundred homes purchased at real estate auctions. Complimentary consultations are available, so contact Keith today!

Pre-Foreclosure Short Sale

Pre-Foreclosures with Short Sales

Investing in pre-foreclosures with short sales has never been better. Working with Keith Wenger at Imperial, he will walk you step by step and introduce you to a creative technique called a real estate short sale. Short sales allow the real estate investor to discount the loan from the lender. You must know this technique if you want to be competitive in today’s market.

Other Questions

When should I begin the Short Sale process?

Immediately! Distressed situations are likely to be very time sensitive and negotiations take time. The faster we can begin negotiating with your lender on your behalf, the greater the likelihood of a successful resolution. You don’t have to wait until you receive a notice of default or notice that foreclosure proceedings on your home are underway. Contact Imperial today! We are here to help you. We’ll answer all of your questions and you are under no further obligation.

If I do not live in the property, do I still need the requirements for a short sale?

Yes. Non-owner-occupied properties do qualify for a short sale.

Negotiation

Why shouldn’t I negotiate with my lender directly?

It is not the formula for success.  For one thing, the property needs to be listed and sold to a third party. Your bank or lender would almost certainly insist that you need professional assistance to handle the sale. Plus, you only get one chance to negotiate a way out of foreclosure through the short sale process and it’s extremely important to have experience and expertise on your side to do it right. You wouldn’t go to court without an experienced attorney, why would you try to navigate the intricate process of a short sale without an experienced short sale expert on your side?  As a mortgage broker, Imperial has relationships and experience in dealing with banks and lenders.

Why would my lender agree to a Short Sale?

Whether a lender chooses to foreclose or agrees to a short sale, the lender is taking a loss. In many instances, lenders take less of a loss with a short sale, and can cut its losses faster then what is required to foreclose. Foreclosure is usually a last resort for everybody. Remember, a lender is in the business of making loans, not owning, managing and reselling properties.

Short Sale Eligibility

What criteria demonstrate that I am in a “hardship” situation?

A hardship situation is one that results from an extenuating circumstance that places you in the position where you can no longer afford your mortgage payments. Examples include:

  • Unemployment or the loss of a primary income source
  • Inability to work due to a health issue
  • Business failure
  • Bankruptcy
  • Death of your spouse or significant other
  • Moving and cannot keep up payments on two properties

If I do not live in the property, do I still meet the requirements for a short sale?

Yes. Non-owner-occupied properties do qualify for a short sale.

Short Sale Advantages

What are the Advantages of a Short Sale?

For you, the homeowner, advantages include avoidance of a foreclosure on your credit history. Having a foreclosure on your credit report is second only to bankruptcy and will substantially reduce your credit score and your ability to borrow money going forward. You will also have to wait several years to qualify for a mortgage again.

The impact of a short sale on your credit is much less severe than with a foreclosure. And, if buying a home is something you’d like to do in the future, if you successfully complete a short sale, in most cases, you may again qualify for a mortgage in as little as 18 months.

A short sale is typically faster and less expensive than a foreclosure and when you use Imperial to facilitate your short sale you will be getting the expert consultation that you need to be successful.

Short Sales

short-sale

A short sale is a sale of property in which the proceeds from the sale will fall short of the balance owed on the loan or loans secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the property owner in exchange for the sale of the property to a third party.

A short sale is typically executed to prevent a foreclosure. Banks and lenders are typically not interested in taking the property back through the foreclosure process.  If they do foreclose, then they have it on their balance sheet as a liability and have to spend time and money to turn around and sell the property themselves. That is not their core business.

Lender negotiations are critical and require the expertise, experience and strong working relationships with mortgage companies and banks that are provided by short sale agents.  Imperial has the expertise to assist with a short sale and has successfully negotiated these transactions for many years.  You will definitely want an expert on your team to help you through this process.

Short Sale Advantages • Short Sale Eligibility • Negotiation • Other Questions

Short Sale Property

short_saleIf a homeowner owes more on their property than it is currently worth, then they can hire Imperial to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation.

Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.  Imperial has significant experience in assisting homeowners with Short Sales.  Because the company is also a licensed mortgage broker, we have great relationships with the banks and lenders in the region so we are more often than not able to negotiate agreeable terms.

 

Benefits
  • A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 18 months (as opposed to five years for a foreclosure).
Drawbacks
  • Short sales can be a very trying process in which a homeowner has to deal with the loss of the property and their hope of a successful investment.  In addition their credit status is adversely affected, just not as severely as losing the property to foreclosure.
Want more info on Short Sales? Find out here.