Tips about Selling Short Sales: SoCal Superior Properties is HAMP Certified:
A short sale in real estate is not always a pleasant transaction.
There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
SoCal Superior Properties is advised by a licensed Broker, Financial Advisor & Legal panel. Always consult a CPA for personal tax consequences. There are certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007. Be Aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. It is very IMPORTANT to determine whether your loan qualifies for a deficiency judgment or claim as these laws are changing daily.
Call SoCal Superior Properties for updated changes. Broker Linda Devenney at (877) 622-5736 Option 5
HAMP Update New Dodd-Frank Certification Requirement
September 23rd, 2010
The U.S. Department of the Treasury issued a HAMP Update titled, New Dodd-Frank Certification Requirement.
Details The Dodd-Frank Certification requirement became effective on September 21, 2010, and provides guidance that borrowers are not eligible to receive assistance under the MHA Program if they have been convicted within the last 10 years of the following in connection with a mortgage or real estate transaction:
felony larceny, theft, fraud, or forgery;
money laundering; or
tax evasion.
Certification Effective September 21, 2010 (i.e., the date of the Supplemental Directive), a servicer must obtain a Dodd-Frank Certification from borrowers as outlined in Exhibit A of Supplemental Directive 10-11. Note: there is an Interim Period Requirement (guidance effective from September 22, 2010 through December 31, 2010) and a Final Period Requirement (guidance effective beginning January 1, 2011). Review Exhibit A for specific details.
Additionally, the following are not impacted by the Dodd-Frank Certification requirement if they are outstanding as of the date of Supplemental Directive 10-11 (September 21, 2010):
Home Affordable Modification Program (HAMP) and Second Lien Modification Program (2MP) trial period plans and trial period plan offers;
Permanent HAMP, 2MP, Treasury FHA-HAMP (Federal Housing Administration) and RD-HAMP (Rural Housing Service) modifications and permanent modification offers; and
Short sale and deed-in-lieu of foreclosure (DIL) offers under the Home Affordable Foreclosure Alternatives (HAFA) Program.