A short sale is when a homeowner sells their property for less than the amount owed on their mortgage loan, and the lender agrees to accept the proceeds from the sale as payment in full to discharge the mortgage. The short sale process involves putting the home on the market, presenting offers to the lender, and if an offer is approved, closing on the sale within 30 days. Lenders will consider short sales if they determine they will lose less money than through foreclosure. They may hire an agent to assess the property's value before approving a short sale offer.

1. What is a short sale?

2. Definition Short Sale : (`shȯrt\`sal) : selling a property when the market will not yield a price for a home that will cover the full principle of the loan remaining on the property. Such sales are subject to the approval of the lien holder(s)

3. Short Sale Process House goes on the market Offers get presented to the seller Accepted offers go to contract Fully executed contracts get sent to the lender

4. Short Sale Process Lender determines if it is worth it to let the property go at that price If approved, the purchaser will have 30 days to close* If they DO NOT approve, the house goes back on the market * Diamond Law Group

5. How will banks decide? Banks will ask themselves “Will we lose more if we take this offer or just let it foreclose?” They will send out a 3 rd party. Typically another real estate agent to conduct a ‘ BPO’ or Broker’s Price Opinion

6. A BPO would include… Houses that share backyard with the LIRR Other houses sold this year How much they sold for? Comparable size

7. Benefits of a Short Sale Short Sales are private compared to a foreclosure Short sales can salvage credit by cutting the number of months of missed payments reported to the credit bureaus You do not need to be in default to short sell

8. The Alternative If the homeowner continue to miss payments, their credit will continue to suffer Eventually the bank will file a ‘lis pendens’ which is a court document to begin repossessing the property

9. What’s happening this year? Many banks have had stalled the foreclosure process over the past 2 years This year many of those banks will begin to actively repossess property and sell it off

10. CNBC CNBC 12/28/10

11. Supply and Demand The increased inventory of houses on the market will cause prices to decrease Supply Demand

12. Resources Diamond Law Group- www.diamondlawgroup.com Richard Klein Esq.- Real Estate Attorney Short Sale Specialist email: [email_address] http://makinghomeaffordable.gov/hafa.html

13. Thank You for your Time! Mary Pasquarelli C21 American Homes Licensed Real Estate Sales Person Certified Buyer Representative Office: 718-206-1340 Mobile: 646-734-1286 Fax: 718-657-7906 email: [email_address] website: http://marypasq.listingbook.com/