Short sale presentation for sellers.

1. Welcome to HER Realtors
10/29/14 1

2. HER Realtors
Cincinnati – Columbus - Dayton
11995566 Founded in Columbus, Ohio by Harley E. Rouda, Sr. (HER)
11996600ss Becomes Central Ohio’s No. 1 brokerage, and remains to this day
22000066 Named the Most Productive Agents In The Nation – REALTOR®
MAGAZINE
22000099--1133 Named Best Real Estate Brokerage by Columbus CEO Magazine
five years in a row
22001122 Realty Services merges into HER Realtors to become the largest
brokerage in the region

3. Equal Housing Opportunity
Everyone benefits from an open
housing market. Restrictions limit
the pool of homes for sale and hinder
those who are hoping to sell.
Federal Law – Right of Every Buyer.

4. Our offices….. Our Agents
55 offices….1000+ agents…10 MLS areas

5. “One-Stop” Real Estate Experience
Our title representatives have offices in or near almost every
HER location to provide you with one-stop-shopping. We
can offer a preliminary title search to ensure there are no
surprises that could delay closing.
HER Realtors has joined forces with pmac Lending
Services, one of America’s premier lenders to provide
great rates, superior service and convenience of one-stop-
shopping.
Most buyers request a Home Warranty from the seller.
Homes with warranties tend to sell faster and for more
money. Put our HMS HomeGard Coverage in place
during your listing period.

6. Serving Ohio and Kentucky Clients
Credentials
• Real Estate Agent with 8+ years of experience
• Attorney with 17 years tax, contract, real estate
experience
• Specializing in Target Marketing with Results
• Technologically savvy
• Specialist in Short Sale and Distressed Situations
• Licensed Attorney-Michigan
• Licensed Realtor- Ohio, Kentucky
Paul Sian
Realtor,
Attorney

7. Disclaimer:
Nothing in this presentation is intended to
be legal advice. Legal advice is often fact
and circumstance specific. If you are in
need of specific legal advice please seek
legal counsel.

8. Short Sales for home owners

9. What is a Short Sale?
• A situation where the homeowner needs to
sell the house but may not be able to pay back
all amounts owed on the house from the sale.
– This could be because the price the house will
fetch on the open market is less than what is
owed.
• Used as an alternative to Foreclosure.
– It is cheaper for the bank to have a short sale than
process a foreclosure.

10. What is a Short Sale?
• The remaining amount which the owner is
unable to be pay back is called the
“deficiency” amount.
• Short sale is used as an alternative to
foreclosure as a cost savings measure.
• All lenders who will receive less than what
they are owed in the sale must agree for the
short sale to happen.

11. How do you Short Sell
your house?
• Start by getting an idea of what your home may get
on the open market to make sure you are truly
underwater on the mortgage.
• Prepare a letter explaining why you need the short
sale. (due to unemployment, reduced income, medical emergency, death,
divorce etc.)
• Talk to a Mortgage Counselor to understand all your
options.
– HUD.gov provides list of approved mortgage counselors by state.

12. How do you Short Sell
your house?
• If a short sale is needed then call up your lender and
speak with their Loss Mitigation Department to ask
about short sale options.
• Anyone negotiating (realtor, attorney, accountant)
with the lender on your behalf will need some sort of
seller authorization to represent form. Check with
your lender if they have a specific form.

13. How do you Short Sell
your house?
• Generally the lender is going to require that
the home owner prove financial hardship.
– The lender will look at all your assets and debts
together to demonstrate financial hardship.
– Paying your mortgage on time does not
necessarily disqualify you.
– Your mortgage counselor and/or you lender will
want to see your financial picture through
documentation. (see attached list of suggested documents
needed)

14. How do you Short Sell
your house?
• If you have multiple loans on your home (1st,
2nd mortgage, HELOC) you will need to
coordinate the short sale with all lenders who
will be asked to take less than they are owed.
– If your 1st mortgage will be paid off in full but you
are only asking your 2nd mortgage to take less then
only need permission from the 2nd mortgage
holder for the short sale.

15. How do you Short Sell
your house?
• Do you qualify for Home Affordable
Foreclosures Alternatives Program (HAFA)?
– Government run program to help avoid
foreclosures.
– Can be used for mortgages that are owned or
guaranteed by Freddie Mac, Fannie Mae and 100+
private lenders.
– Certain minimum requirements (see attachment).
– Banks still need to give ok to participate.

16. How do you Short Sell
your house?
• HAFA Benefits include:
– Complete release from mortgage debt after sale.
– Less negative effect on credit score than
traditional short sale.
– HAFA may provide up to $3,000.00 in relocation
assistance.
• Link for more HAFA info toward the end of
presentation.

17. How do you Short Sell
your house?
• Veterans Administration loans (VA)
– Have a short sale program referred to as
“compromised sales”.
– VA will make whole the private lender who lent
money under VA loan after short sale closed.
– VA usually will not pursue the Servicemember for
the deficiency.
• Further VA eligibility is decreased based on the
deficiency so they may not be eligible to do VA
financing unless they pay it back.

18. Short sale was approved by
lender, now what?
• Short sales process is slow until an offer is
approved by the lender.
– Usually the short sale approval letter lasts for only 30-60
days. So you must act fast!
• Short sale buyer can ask for inspection prior to
or after approval of the offer.
– Prior to wastes less time.
– After buyer can walk away in case of major issues with
house. i.e. foundation, water issues…

19. Long term effects of a
short sale
• If your lender reports your debt as “settled” or
“renegotiated” (and they most likely will) your
credit score will go down.
– This will affect your ability to borrow money in the
future and can affect anything else credit related
as well (apartment rental, car loans, utility bills
usually run credit checks).

20. Long term effects of a
short sale
• Make sure you get a release from all lenders
associated with your house.
– No release, you still owe them.
• Forgiven debts can have tax consequences.
– Prior tax relief law has expired.
– Consult with tax attorney or accountant to
determine your tax liability.

21. Be Wary of Scams!
• There are many scam artists out there.
– Review credentials if someone approaches you.
– Don’t take their word for it. Confirm with
government or third party websites.
– Approved mortgage counselors are found on
government websites and are a better source of
information and help.

22. Useful Links
• www.HUD.gov/offices/hsg/sfh/hcc/hcs.cfm
(for a list of HUD approved mortgage
counseling agencies by state)
• For VA loans involving short sales search for
“Compromise Sales” www.benefits.va.gov
• www.makinghomeaffordable.gov has info on
HAFA, list of mortgage servicers who may do
HAFA, and more.

23. My contact info:
Office Phone:513.752.8200
Cell Phone: 513.560.8002
E-mail: Paul.Sian@HERrealtors.com
Facebook: www.facebook.com/paulsian
LinkedIn: Paul Sian
My Web Site: www.herrealtors.com/paulsian
My Blog: www.cincinkyrealestate.com