Indianapolis Homes for Sale Indianapolis Short Sale

Alpha Mediation Services is designed around the complicated mediations of Short Sales and Loan Modifications. Short Sales are a strategy that only applies to homes that are in foreclosure, behind on payments or about to go behind on payments.If you have decided that it may be best for you to sell your home, listing it with a reputable agent may be an option for you. HOWEVER, you must find an agent who has experience working with short sales or you must work with a company such as ours to help you through the red tape required. One of the biggest obstacles cited by real estate agents in completing short sales is the delay in hearing back from mortgage servicers regarding a potential short sale. On average, home listing agents reported it takes servicers 4.5 weeks to provide an answer on a potential short sale, resulting in many potential buyers simply walking away while awaiting a response to their offer. Alpha Mediation Services understands these delays and works hand in hand with your busy Realtor to make sure that your information is on the top of the list with a servicer. MISTAKE #1: Listing your home with just any Real estate agent in hopes of getting your house sold fast and solve your problem. If an agent in not familiar with the urgency of a listing a short sale property and the sum total of their effort to sell your home is just putting a sign up in your front yard and hoping that it sells, they are not the agent for you. You have to remember that the house is still in foreclosure and the bank is not going to stop their proceedings just because you listed it. Someone actually has to be able to stop the foreclosure auction to allow time for it to sell and close with your new buyer. That is where AMS is here to help. We will assist you in finding an experienced agent and work hand in hand with them to insure that you have the time you need to sell your home and stall any foreclosure proceedings. If you are considering using a real estate agent you need to ask the following questions: What is your guarantee that you will sell the house and close the sale before it goes to Foreclosure at the courthouse steps? What if I find someone on my own who wants to buy the house? Do I still have to pay you a commission? If the house is sold at a price that won’t cover all of your commissions, do I still have to come up with the money out of pocket to pay you? Can I cancel the listing whenever I want? HOW WILL THIS EFFECT MY CREDIT? A short sale, foreclosure and Deed in lieu of foreclosure will all effect your credit score. Sellers will take as big a hit on their credit by going through foreclosure as giving the lender a deed-in-lieu of foreclosure. Points lost on a FICO score are as follows: Foreclosure or Deed-in-Lieu of Foreclosure Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380. Short Sale The effect of a short sale on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status. Which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420. The effect on a consumer's credit report—foreclosure vs. short sale—is the difference between being hit by a train or a bus. Here's why: Waiting Period Before Buying Another Home Foreclosure or Deed-in-Lieu of Foreclosure A seller who wants to buy another home after foreclosure will end up waiting about 36 months before a lender will offer any kind of interest rate that makes sense. Short sale A notation on a consumer's credit profile of 'settled for less than owed' (short sale) precludes the consumer from obtaining an institutional loan for 24 months, depending on the lender's program and regardless of FICO score. Fannie Mae guidelines require 24 months seasoning, and there's no way to get around this. Sincerely, Short Sale/Foreclosure Deficiency Judgments The bad news is a seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In California , purchase money loans are not subject to deficiency judgments; however, hard money loans, equity loans and refinances are. Some other states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment. The lender has sole discretion whether to pursue a deficiency judgment in those instances when the judgment is permitted. To determine whether a pending foreclosure or short sale is subject to a deficiency judgment, talk to a real estate lawyer. Sincerely Jason A .Richey Jason A Richey 317-514-0718