SELLER REPRESENTATION

It is Helen and Franzi's commitment to sell your property in a timely fashion while helping you attain the highest possible price for your sale. It's important to know the local market activity and the selling price in your neighborhood. Contact Helen or Franzi regarding your property and they will gladly create a Comparative Market Analysis Report to assess your property's market value. Click here to receive a free market analysis estimating your home's value.

If you are considering foreclosure or a short sale of your home, don't hesitate to contact them. Helen and Franzi have been working extensively on short sale and loan modification packages for the past four years.

WHEN DO I DECIDE TO SHORT SALE?

• Example: If you owe $300,000 and the property sells for $200,000
• $100,000 difference in reported income is NOT taxable in most cases
• $100,000 @ 0% = $0 in additional taxes owed to the IRS*

• Example: If you owe $300,000 and the property sells for $200,000
• $100,000 difference in reported income IS taxable in most cases
• $100,000 @ 35% tax bracket = $35,000 in additional taxes owed to the IRS*

Many homeowners that are considering a short sale or a loan modification have decided that instead of waiting for the market to come back they are opting to sell their house now. If you owe more than your house is worth, it will take time to break even. Do the math figuring the average growth rate in a stable market is 3-5% yearly. If you decide to sell your house BEFORE you break even, there will be debt that is settled by the lender. Pursuit of a short sale AFTER this deadline expires will be subject to additional tax liability. Don't wait too long and find yourself in this situation. Keeping in mind that a short sale can take up to 6-9 months from start to finish.

While we as real estate agents can do all the same things as far as negotiating with the banks we cannot give the legal or tax advice that is so valuable especially now as banks are tightening the ropes and making it harder to qualify for short sales, in some cases asking for partial payment of deficiencies prior to approval etc. due to the increase in strategic defaults, where an attorney assisted negotiation can minimize this risk.

Legal Advisements: Having an attorney manage the case affords the client immediate access to a licensed Attorney with a full range of legal expertise and specific knowledge of the case details, should it be required. Advice for bankruptcy, debt negotiations, and tax implications are immediately accessible.

Detailed Case Overview: A full legal & financial review of a client's loan scenario by an experienced attorney ensures a negotiating and/or legal advantage are identified and introduces into the case management and strategy.

Attorney Supervision for On-Going Negotiations: Attorney representation on behalf of the client may be afforded a higher priority with lenders given the various legal options available to a licensed Attorney.

Managing Potential Lawsuits: As the case evolves through time, should it be necessary that other legal remedies and defenses be required, an attorney, intimately involved with the specific case, will be available to handle and manage them with a separation agreement.

Attorney-Client Privilege: Interaction between client and attorney are legally protected and "privileged" by law thereby offering a high level of confidentiality and professionalism.

Attorney "Code of Ethics" Benefits: An attorney is bound by strict rules of legal conduct that offers the client a higher level of confidence in this critically important matter.

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PLEASE DON'T HESITATE TO CALL IF YOU HAVE ANY QUESTIONS ABOUT SHORT SALES OR FORECLOSURES. WE ALSO CAN ASSIST IN RELOCATING.
623-533-5616

"5 REASONS TO SHORT SALE NOW"

1.) Impending Inventory Avalanche: Pending inventory that will be brought by both 90+ day delinquent borrowers and those in default currently, but not yet foreclosed upon, will rise rapidly in 2011 and 2012. The number of loans that will be in default is only going to rise in the next year as the Tax Debt Relief is coming to expire in December 2012, so everyone who was waiting to see if the market would come back, will be out of time and need to act quickly.

2.) Short Sale Approval Speeds: Lenders have streamlined the process of Short Sales, and will work diligently at continuing to improve the way their Short Sales are being handled & ultimately approved. 2011 will be the year of the Short Sale!

3.) New Pressures to Expedite the Foreclosure Process: Both Fannie Mae and Freddie Mac have implemented stiff financial penalties for those lenders & mortgage servicing companies that let the Foreclosure process drag beyond the pre-established timelines set forth. Foreclosures will happen at a much faster pace in 2011, and beyond.

4.) Your Financial Future: A successful Short Sale is almost certain to be a better option for your financial future than a Foreclosure will be. Your credit will be able to recover more quickly and you will have no remaining uncertainties for future liabilities that could arise if you were to let the home fall victim to Foreclosure. At the end of a short sale you know exactly where you stand vs a foreclosure unless your mortgages are strictly purchase money (as this is the only mortgage protected by the anti deficiency law) you are left with a lot of uncertainty.

5.) Downward Pressure on Pricing Continues: Most economists are predicting that home prices will continue to fall. The more prices fall, the more upside down you may become, and the more your liability grows. And even if you think this doesn't matter the bank is only going to get what the house is worth, you can't ignore the fact that it also increases your tax liability.