How To Sell A San Mateo Home You Cant Afford
-
Upload
rebecca-williamsonthe-raychel-realty-group -
Category
Real Estate
-
view
920 -
download
0
description
Transcript of How To Sell A San Mateo Home You Cant Afford
![Page 1: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/1.jpg)
How to Sell a Home You Can’t Afford
Thanks for joining tonight’s webinar. We will begin shortly. To download the slides, please visit
http://budurl.com/WebinarHandout
The RayChel Realty Group
Tonight’s Speaker
Raymond StoklosaManaging Broker and Co-Owner
The RayChel Realty Group
Phone: (650) 655-2500
www.LivingWellinSanMateo.com
![Page 2: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/2.jpg)
Questions During the Webinar
Short sale experts are available to answer questions throughout the presentation
This is an interactive learning environment. You will get the most value from this program by having your specific questions answered.
The RayChel Realty Group
having your specific questions answered.
The only dumb question is the one you don’t ask
![Page 3: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/3.jpg)
Questions During the Webinar
You may type questions in at any time during the presentation – Question box on your screen
The RayChel Realty Group
![Page 4: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/4.jpg)
How to Sell a Home You Can’t Afford
Presented by
The RayChel Realty Groupw w w . R a y C h e l R e a l t y G r o u p . c o m
Presented by
Raymond StoklosaManaging Broker and Co-Owner
The RayChel Realty Group
Phone: (650) 655-2500
www.LivingWellinSanMateo.com
![Page 5: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/5.jpg)
Purpose and Goals of This Evening’s Webinar
Purpose
Share our Passion for Your Education
Goals
Increase your awareness about your options when you can no longer
The RayChel Realty Group
options when you can no longer afford your home
Show what you can expect and what your lender expects from you
Educate and empower home owners in ways that improve their lives
![Page 6: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/6.jpg)
Life Got Hard?
Have you hit a pothole on the road of life?
Is your home worth less than you owe the bank?
Does the month last longer than your money?
Is your monthly mortgage payment unaffordable?
The RayChel Realty Group
![Page 7: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/7.jpg)
Can’t Afford Your Home?
If you can’t afford your mortgage payment, here are your options…
� Refinance – replace existing with a better loan
� Loan Modification – loan terms adjusted
� Forbearance – suspended payments
The RayChel Realty Group
� Forbearance – suspended payments
![Page 8: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/8.jpg)
Can’t Afford Your Home?
If you can’t afford your mortgage payment and selling is your only option, here are the possibilities…� Short Sale – Sell for less than amount owed
� Deed in Lieu – Transfer to Bank
� Foreclosure – Home sold at public auction
The RayChel Realty Group
� Foreclosure – Home sold at public auction
� Bankruptcy – Court reorganization plan stays foreclosure
![Page 9: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/9.jpg)
Primary Benefit of Short Sale
Seller Avoids Foreclosure
• Ineligible FNMA for 5 years
• Shows on Credit for 10 years
• Foreclosure could mean loss
The RayChel Realty Group
• Foreclosure could mean loss of security clearance
• Current & future employment in jeopardy
![Page 10: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/10.jpg)
Short Sale Myths
• Bank is desperate to dump nonperforming assets
• Bank has no choice but to capitulate to demands of buyers and needs of sellers
The RayChel Realty Group
![Page 11: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/11.jpg)
Short Sale
Apt Solution
or
Wishful Thinking?
The RayChel Realty Group
![Page 12: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/12.jpg)
What is a Short Sale?
• Arms Length - FMV – Sale to Buyer
� Subject to Lender Approval
� Lender Agrees to Accept Less than Amount Owed
� Usually Considers the Debt Repaid in Full
� Seller Receives No Money
The RayChel Realty Group
![Page 13: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/13.jpg)
Who is Eligible?
Eligibility of Seller is…
• Completely Up To Lender
• Rules Vary Lender/Loss Mitigators
• Each Lender Sets Own Rules
The RayChel Realty Group
• Each Lender Sets Own Rules
![Page 14: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/14.jpg)
Getting an Approved Short Sale
Single Factor Common
to All Approved Short Sales is…
The RayChel Realty Group
is…
Hardship
![Page 15: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/15.jpg)
What is a Genuine Hardship?
• Job Loss
• Serious Illness
• Divorce
• Involuntary Relocation that Depletes Homeowner’s Assets
The RayChel Realty Group
Homeowner’s Assets
• Cannot Pay New Loan Payment – ARM Adjustment
![Page 16: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/16.jpg)
What is Not a Hardship?
Personal Preferences
• Home Worth Less than Borrower Paid
• Borrower Does Not Want Home
The RayChel Realty Group
Home
• Borrower Does Not Want to Make Payments
• Borrower Wants to Buy Another Home
![Page 17: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/17.jpg)
Who May Not Qualify?
Show Stoppers…
• Homes with Substantial Equity
• Homeowners with Significant Assets or Income
• Homeowners with 2nd Homes or Rentals
• Homeowners in Bankruptcy
The RayChel Realty Group
• Homeowners in Bankruptcy
• Home Loan is Government Insured
• Investors
![Page 18: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/18.jpg)
General Rule
Borrower Must Be Delinquent Before Lender Will Approve – or even consider – a Short Sale.
The RayChel Realty Group
![Page 19: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/19.jpg)
It’s a Numbers Game
• Lender Makes a Financial Decision� Strictly the “Bottom Line”
� More now, less later
• Avoids Expense of Foreclosure� Uncollected interest and penalties
� Attorney’s Fees
The RayChel Realty Group
� Trustee’s Fees
• Eliminates Non-Performing Loan� Non-Performing loans are Liabilities
• REO Inventory Unaffected� Avoid Carrying Costs
� Opportunity Loss
![Page 20: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/20.jpg)
Who are the Initial Players?
ServicerHome-owner’s REALTOR®
Homeowner
Initial participants
The RayChel Realty Group
BuyerBuyer’s
REALTOR ®
participants
![Page 21: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/21.jpg)
Who are the Players?
Junior Lien
Holders
Private Mortgage Buyer’s
Home-owner’s REALTOR®
Homeowner
Short sale
The RayChel Realty Group
MortgageInsuranceCompany
Investor
Servicer
Buyer
Buyer’s REALTOR®
Short saleparticipants
![Page 22: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/22.jpg)
All Parties Must Be Aligned
• Seller/Borrower - Debtor
• Lender – Made the Loan
• Servicer – Collection Service
• Investor – Owns Loan
• Mortgage Insurer – Insures lender/investor loss
The RayChel Realty Group
• Mortgage Insurer – Insures lender/investor loss
• Junior Lien Holders – Other creditors
• Real Estate Agents – Authorized 3rd party
![Page 23: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/23.jpg)
Seller’s Final Position
In the end, the Seller…
• Avoids Foreclosure
• Eliminates a Financial Burden
• Salvage Credit Rating
• Receives No Money
The RayChel Realty Group
• Receives No Money
• Loses Property Voluntarily
• Vacates Property
• Moves on with Life
![Page 24: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/24.jpg)
Uncertain Outcome
• Most Short Sales are Not Attainable
� Seller Cannot Demonstrate Hardship
� Price NOT Acceptable to Lender or Investor
The RayChel Realty Group
![Page 25: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/25.jpg)
Challenges of Short Sales
• High Failure Rate
• Lengthy Processing Time
• Paperwork Intensive
• Lenders Unfamiliar with Local Market
• Lenders Overwhelmed
• Seller’s In-Difference
The RayChel Realty Group
• Seller’s In-Difference
• Real Estate Agents Ill Informed
• Real Estate Agents Not Proactive
• Recovery Demand Unacceptable
• Foreclosure Date Too Near
![Page 26: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/26.jpg)
Potential Tax Consequences
Federal Government passed law in 2007
� Directing IRS NOT to include the mortgage debt forgiven by the lender as income, however…
� Applies only to purchase loans
� Does not apply to debt on cash-out refi’s
� Does not apply to 2nd homes
The RayChel Realty Group
� Does not apply to 2 homes
� Dollar Limitation
� $1 Million for married couples filing separately
� $2 Million for married couples filing jointly
Seek Professional Tax Advice!
![Page 27: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/27.jpg)
Pitfalls of Secondary Debt
• Typically, Junior Lien Holders do not forgive the unpaid debt.
� Accept partial payment
� Then, sell the unpaid debt to Collection Agency
� Junior Loans are normally recourse debt
The RayChel Realty Group
� Junior Loans are normally recourse debt
� Collection Agency pursues the seller
• Negotiate a Release for Full Satisfaction of Debt
![Page 28: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/28.jpg)
Beware of Schemers and Predators
• Money Up Front “Problem Solvers”
• Illegal Kick Backs
� Seller cannot receive money “under-the-table”
• HUD-1 Must Account for all Funds
• Lender Fraud is a Felony
The RayChel Realty Group
• Lender Fraud is a Felony
![Page 29: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/29.jpg)
Nothing Short About Short Sale
The Only Thing Short
About a Short Sale is the
Lender is Short Changed!
Short Sales are…
The RayChel Realty Group
Short Sales are…
Complicated
Legally Complex
Technically Difficult
And, They Are Doable.
![Page 30: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/30.jpg)
Special Word About Investor Sales
Home Equity Sales Contract Law
Special Contract required when…
• Buyer is an Investor
The RayChel Realty Group
• Buyer is an Investor
• Property Being Sold is Residential 1 - 4 Units
• Owner Currently Occupies the Property
• Notice of Default (NOD) has Been Recorded
![Page 31: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/31.jpg)
Seller Has Legal Rights
Upon Recording Notice of Default
• 5 Day Cancellation Period
� Seller may cancel
• 2 Year Contract Rescission Period
� Rescission for any unconscionable acts
The RayChel Realty Group
� Rescission for any unconscionable acts
• No Waiver by Seller
� Any waiver is void
• No Limitation on Damages
� Limiting investors liability is void
![Page 32: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/32.jpg)
Why Short Sales Derail…
• Seller cannot document hardship
• Seller will not agree to approval conditions
• Seller will not sign promissory note
• Seller will not make property accessible for showing
The RayChel Realty Group
showing
• Lender and/or Junior Lien Holders will not approve
![Page 33: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/33.jpg)
Why Short Sales Derail
• Investor will not approve
• Mortgage Insurer will not approve
• Buyer unable to get financing
• Property has clouds on title
• List price is too high or too low
The RayChel Realty Group
• List price is too high or too low
![Page 34: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/34.jpg)
Keys to Short Sale Success
• Be Engaged
• Respect the Process
• Be Mindful of the Details
• Send Complete Short Sale Package
The RayChel Realty Group
Package
• Respond in Timely Manner
• Set Realistic Expectations
• Retain Professional Representation
![Page 35: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/35.jpg)
Technology Tools You Can Use at Home
The RayChel Realty Group
![Page 36: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/36.jpg)
www.LivingWellinSanMateo.com
The RayChel Realty Group
![Page 37: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/37.jpg)
Home Value – PropertyValuesNow.com
Find out what homes in your neighborhood have sold for
The RayChel Realty Group
![Page 38: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/38.jpg)
Ask a Real Esate Question
http://LivingWellinSanMateo.com/San-Mateo-Real-Estate-Question/
The RayChel Realty Group
![Page 39: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/39.jpg)
Help Us Spread the Word
“Classes” Tabfor a Class Schedule
The RayChel Realty Group
![Page 40: How To Sell A San Mateo Home You Cant Afford](https://reader034.fdocuments.in/reader034/viewer/2022052618/554e03a9b4c90513298b4ae4/html5/thumbnails/40.jpg)
Free Conversation
Raymond StoklosaManaging Broker and Owner
Chela StoklosaAgent and Owner
Rebecca WilliamsonAgent
The RayChel Realty Group
Managing Broker and Owner Agent and Owner Agent
Phone: (650) [email protected]
YouTube.com/LivingWellinSanMateo