Michigan Short Sale Marketing Experts
Do you owe more than what your house is worth in todays market? Are you behind or about to be behind on your Mortgage Payments? You may qualify for a short sale.
In Michigan it is more and more common for a homeowner to find himself/herself in a hardship situation when they are no longer able to make their mortgage payments, due to a variable interest rate that has changed, divorce, illness, job loss or a variety of other reasons. Sometimes a homeowner is current on their mortgage payment, but just got a new job out of state and must sell their home. There is a big difference between a short sale and a foreclosure on your record.
A short sale might be an option because the homeowner owes $300,000 on their mortgage, but can only sell their house for $200,000 because of current market conditions. Since the homeowner must sell their home, and the homeowner does not have the ability to bring the difference of what they can sell the house for and what is owed, in this case $100,000, then this might be a good case for a short sale.
A Time Sensitive Real Estate Transaction
We do not negotiate with your lender. We can recommend a company who specializes in working with your lender. We can also point you in the direction necessary to have an attorney review all proposals offered by your lender. It's critical that when you make the decision to short sale your house, you put your trust with a real estate agent that has experience and a successful past track record in marketing short sales.
Keep in mind if the process isn't handled 100% correct from the begining you will run out of time and your home will go into foreclosure. This isn't a normal real estate transaction where if the home doesn't sell you can just re-list with another real estate agent. Once you stop making payments, the time clock begins. I tell you this so you know the importance of calling the right agent.
The benefit of a Short Sale over a Foreclosure
If you participate in a short sale, and the company you hire is successful in getting the bank to accept short of what is owed to them on your mortgage, your credit will only show 30-60-90 day late payments, contrary to an actual foreclosure on your record. If you foreclose on your home, you will not be able to get another mortgage for as long as seven years. If you manage to do a short sale, you may be able to get another home mortgage within a couple years or less.
This requires your lender to take a discount on what is owed them. Sometimes your lender will take as much as 20% or more less than what is owed. If you have a FHA mortgage, your lender will send out an appraiser and can accept approximately 82% less than the appraised value.
Why would a lender take less than what is owed to them? Because a short sale will save your lender the costly process of getting the home back in Foreclosure. The foreclosure process for a bank is a very long process and usually a very expensive project for a bank. They will have to incur the costs of an attorney, maintenance of the property, sometimes mold issues, securing the property, real estate fees along with many other fees.
Pre-Foreclosures & Short Sales In Michigan
Call Toll Free 248-937-1337 now for immediate answers to any of your Michigan Short Sale Questions...
Real estate is very costly for a lender. Lenders do not want to become property managers, they want to lend money. While the house is left vacant, the pipes may freeze throughout the cold winter months, the house could be vandalized, and usually the home will sell for much less than what it could sell for in the short sale process.
We are a team of real estate professionals who specialize inmarketing pre-foreclosure homes for homeowners who are in this very situation. We work with your lender on your behalf to list and sell your home.
Your lender pays our commission and also your closing costs.
You need to know that Michigan is on the top of the list for number of foreclosures in the country and because of that, you must act quickly.
Required Documents to complete a Short sale
The first thing you should do to start a short sale process is call your lender and ask for the loss mitigation department and ask for a short sale package. Sometimes you must stop making payments for a month or two before your lender will begin to take you serious. Below is the package we must compile before your lender will even begin to entertain a short sale.
- Authorization to release information form
- Hardship Letter
- Financial Worksheet
- Listing agreement
- Copies of tax returns (last 2 years for everyone on the note)
- Copies of all bank statements (last 2 months for everyone on the note)
- Copies of pay stubs (last 2 pay periods )
- Signed purchase offer (MARK Z Home Selling Team will get)
- HUD 1 closing sheet
- CMA with pictures (MARK Z. Home Selling Team will do)
- Application for Pre-Foreclosure sale program (Only if FHA , HUD form 90036)
- Homeownership counseling form (Only if FHA , HUD form 90038)
Fill out the form or call us at 248-937-1337
For more information about the short sale or foreclosure process in Michigan, contact Michigan Short Sale Specialist MARK Z. & Associates.
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