The Help You Need with Short Sales, Foreclosures & Preventing the Loss of Your Home

If you are experiencing difficulty paying the mortgage on your home, if you are fearing Foreclosure, if you are looking for a solution to your mortgage problems with the least detriment to your credit and the least disruption on your life, The Velez-Cardamone Team can help! We are Certified Distressed Property Experts (CDPE) and can help you avoid a credit-destroying foreclosure. CDPE's are an elite group of professionals committed to helping families in distress/hardship situations. Through extensive and ongoing education, The Velez-Cardamone Team has earned the CDPE designation, dedicated our time and effort to understanding the issues distressed homeowners are dealing with and are ready, willing and able to help you with a full range of solutions.

Thank you for placing your “VOTE OF CONFIDENCE IN OUR HANDS”! We look forward to serving YOU, YOUR FRIENDS & FAMILY with the highest level of REAL ESTATE EXCELLENCE!

It will be important to familiarize yourself with some concepts in the sale or purchase of distressed property.

Short Sale:

When a homeowner owes an amount on his property that when combined to the closing costs is higher than the actual market value.

Foreclosure:

When a homeowner defaults by failing to make payments on his or her mortgage, the bank or financial institution that holds the mortgage note may foreclose on the property. Foreclosure gives the legal ownership of a property to the bank to allow the bank to recoup its investment. Foreclosure proceedings vary by state but usually involve court appearances to ensure the foreclosure is warranted.

Successful Short Sale:

This takes place when a homeowner’s lender or multiple lenders accepts less than the full balance of the owed amount, loan amount. The property is sold to a buyer and therefore the property is sold short.

Executing Successful Short Sales:

This process requires team work on the part of the owner/borrower, a Certified Distress Property Expert (CDPE)/Realtor, the bank and processing team/negotiators to achieve the objective. It also requires excellent communication skills, systems, professional expertise and patience on the part of all parties involved in the transaction.

Options for Borrowers in Distress

Reinstatement: The borrower re-establishes his/her missed payments. This requires the borrower to pay all missed payments, late fees, and legal fees that are due up to the date that the loan is reinstated.
Forbearance: A payment plan is established for a borrower in order to bring payments up to date along with legal and late fees. This payment plan is executed over several payment periods to bring the homeowner up to their current obligations.
Sell the Property: In this case the seller may be able to sell the property as they have equity in the home which will allow them to cover the costs associated with the transaction and the debt owed to the bank.
Rent the Property: This alternative may be feasible for some property owners when their monthly mortgage obligation is covered by the rental income on a monthly basis. This may only be feasible on a short term basis due to inventory levels, association’s expenses and property tax implications as investment property.
Refinance: This may be a viable opportunity for a homeowner on a temporary solution. This avenue is viable only in cases where the homeowner has equity in their home.
Mortgage Modification: This is an alternative offered by some lenders whereby the interest rate is reduced on a mortgage payment in order reduce the overall monthly payment. The borrower needs to submit to an approval process by the bank. This provides the opportunity to continue with the home.
Deed-In-Lieu of Foreclosure: The borrower gives the deed to the bank. In such case, the borrower may be spared from a foreclosure proceeding. This process applies in cases where there is only one mortgage and no liens. In the event the borrower has equity in the home, said funds are forfeited.
Bankruptcy: Provides an opportunity for the borrower to re-organize their payments and overall finances. This does not rule out foreclosure; it may delay the execution of the process.

Financial Harship and Distress is generally considered as a result of the following:

Loss of Job
Business Failure
Damage to Property
Death of a Spouse
Death of a Family Member
Severe Illness
Inheritance
Divorce
Relocation
Military Service
Payment Increase or Mortgage Adjustment Due to Loan Program
Insurance or Tax Increase
Reduced Income
Separation
Too much Debt
Incarceration

Process:

Client Consultation/Listing Appointment
Financial Qualification
List Property
Market on MLS and multiple channels
Prepare Borrower/Seller Bank Package
Offer Created & Presented to Bank
Negotiation (Seller Doc’s, Disclosures, Statistical Analysis)
Executed Contract
Bank Review (Appraisal/BPO)
Approval/Denial/Consequences…………Marketing/Re-negotiation/Updated Contract
Adjusted Payoff to Title
Final Inspections
Closing

Documents Needed by the Velez Cardamone Team

Your CDPE (Certified Distress Property Expert)

Start gathering these documents so you are ready to move forward

with achieving a solution to your hardship situation.

Warranty Deed
Owner’s Title Policy
Survey
Hazard Insurance Policy
2 Months – Most Recent Pay Stubs
2 Months – Most Recent Bank Statements
2 Years – Past Years Tax Returns
Family Budget – Expenses
Bank Statement – Mortgage
Bank Statement – Equity Line of Credit or Second Mortgage

Questionnaire To Assist the Velez Cardamone Team

Your CDPE (Certified Distress Property Expert)

Please take a moment to collect the information below

What situation has contributed to your financial harship-distress?
Why do you need to sell?
Is your property already on the market? Agent or No Agent?
When was the property purchased?
Original purchase price?
Who is on title?
Who is on the mortgage?
Who is on the 2^nd mortgage?
Who is on the equity line of credit?
Have you refinanced?
Who is your lender? (Name/loan#/phone#/$balance)
Who is your second lender? (Name/loan#/phone #/$balance)
Who is your equity line of credit provider?
What type of mortgage do you have? (Fixed, Conventional, VA, FHA, Adjustable)
Do you live in the property or is it rented?
Do you have Homestead Exemption (FLA residents/US citizens & residents)?
What condition is your property in?
Are there any repairs needed?
Are you relocating due to job related circumstances?
Are you current on your association dues or past due?
How much are your payments and how often?
How behind are you on your association dues?
Association Information (Name/phone#/address)
Do you have a copy of the association documents?
Does your association have resale or leasing restrictions?
Does your association allow realtor signage on the property being sold?
If so, what size is permitted?
Is association approval required for signage?
Is association approval required for new owner and/or tenant?
Is there a fee associated with the association approval?
Do you owe taxes or are you current?
Do you have any outstanding liens on the property?
Are you involved in any lawsuits associated with the property?
Are you considering bankruptcy?
If so, have you consulted with a bankruptcy attorney?
Have you engaged in conversations with the bank regarding loan modification, repayment plan or bankruptcy?
What lender communication have you established?
What department have you called and with whom have you spoken?
How many months reserves do you currently have in order to cover mortgage and living expenses?
What is your monthly household income (each family member)?
What are you estimated monthly expenses aside from mortgage (principal/interest), taxes and insurance?
Are your taxes and insurance escrowed in your monthly payments?
Other information that is relevant to your hardship?
Do you have any security clearances that are involved with the military, law enforcement, civilian security or other? (Please note that foreclosure can affect your future employment opportunities)

Buying REO Properties (Bank Owned)

An REO is real estate owned by the bank. These properties have gone through foreclosure without a successful sale and have now reverted back to the bank, lender or mortgage company. The lender may have attempted to sell the property at an auction and not received any bids. The lender now has the burden to list and sell the property for the highest recovery in the shortest amount of time. REO properties can be great opportunities for first-time home buyers as well as investors.

It is important to understand that REO properties do not have the normal disclosures as a standard sale by a homeowner. REO sellers (lenders) have never lived in the property; seen the property and therefore are selling the property in “As Is” condition with right to inspect.

It is important to realize that the three basic principals of real estate still apply, “location, location, location”. You will need to also evaluate the level of repairs that may be needed to restore the property to its original condition, structurally and cosmetically. Additionally, you will need to evaluate the opportunity for potential appreciation and the immediate competition/inventory in the specific geography in which the property is located.

An REO purchase is generally a much “cleaner” transaction than than the purchase of a foreclosure. The lender will normally see the removal of the tax liens, home owner association liens and generally pay for the issuance of the title insurance policy for the buyer at closing. Keep in mind that the title company will be selected by the lender.

REO Properties will normally be advertised as such in the MLS and will have a local agent promoting them for sale. When making an offer, it will be important to inquire from the agent any information that they may have received from the lender regarding the condition of the property. It will be important to include in you offer an inspection contingency to address the “As-is” condition. It is crucial to be careful to meet the time criteria specified in the REO contracts. Lenders will keep your deposits and will be strict on inspection periods. Additionally, it will be important to include your ability to pay cash or obtain financing from a lender (pre-approval letter). Most lenders will counter offer your original offer. It may take 7 to 10 business days to obtain an initial response from the lender. Keep in mind that short sales can take much longer even reaching 3 to 4 months.