Virginia Short Sales

A Charlottesville Short Sale Firm

Specializing in both single family homeowners & bulk Virginia short sales with developers who are facing foreclosure using their our unique Charlottesville short sale strategies to bypass foreclosure.

We work with Charlottesville realtors* and homeowners

 

Virginia Short Sales successfully discounts over $3-5 million a month in bad debt using short sales as their vehicle of choice.

A Virginia short sale in real estate is not fun for the homeowners or developers.

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 Virginia homeowners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or Virginia foreclosure sales.

One of those options is called a "Virginia short sale."

Short sales in Virginia have become prominent over the past few years.

When lenders agree to do a Va. short sale in real estate, it means the lender is accepting less than the total amount due.

Not all lenders will accept a Virginia short sale or discounted payoff, especially if it would make more financial sense to foreclose and sell it as a Virginia REO (bank owned property).

not all sellers nor all properties qualify for a Virginia short sale.

You must need to show true hardship or future financial woes.

On the other hand, if you are considering buying a Virginia short sale, there could be drawbacks.

For your protection, Virginia Short Sales Inc. suggest that all borrowers:

•Obtain legal advice from a competent Virginia real estate lawyer well versed in Virginia short sales and Virginia foreclosure sales.

•Call an accountant to discuss short sale tax ramifications.

VirginiaShortSale.com is not a licensed Virginia attorney nor a CPA and cannot advise on those consequences. We are licensed Virginia realtors who only specialize in short sales in Virginia.

Except for 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 Virginia, this amount is known as a deficiency.

A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

•Call the Lender

You may need to make a half dozen phone calls before you find the person responsible for handling short sales.

You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.

•Submit Letter of Authorization

Lenders typically do not want to disclose any of your personal information without written authorization to do so.

If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan.

The letter should include the following:

•Property Address
•Loan Reference Number
•Your Name
•The Date
•Your Agent's Name & Contact Information

•Preliminary Net Sheet

This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any.

Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees.

If the bottom line shows cash to the seller, you will probably not need a short sale.

•Hardship Letter

The sadder, the better...

This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment.

Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.

•Proof of Income and Assets
It is best to be truthful and honest about your financial situation and disclose assets.

Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value.

Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.

•Copies of Bank Statements

If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it's probably a good idea to explain each of those line items to the lender.

In addition, the lender might want you to account for each and every deposit so it can determine whether deposits will continue.

•Comparative Market Analysis

Sometimes markets decline and property values fall.

If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA).

VirginiaShortSale.com can prepare a CMA for you, which will show prices of similar homes:

•Active on the market
 
•Pending sales

•Solds from the past six months.

•Purchase Agreement & Listing Agreement

When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement.

Be prepared for the lender to renegotiate commissions and to refuse to pay for certain items such as home protection plans or termite inspections.

Now, if everything goes well, the lender will approve your short sale.

As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request.

You home is sold for less than your mortgage but you owe your lender nothing)

If your current financial hardship is so severe that you are unable to continue paying your mortgage even if the current terms were modified to provide a lower monthly payment or if you simply want to sell your property but can’t do so because the value has dropped below your outstanding mortgage balance, then our attorney-based short sale program is for you.

Our team of loss mitigation negotiators and our network of real estate agents and investors stand ready to sell your property for less money than you actually owe on your mortgage(s), yet you can end up owing nothing more to your lender once the property is sold.

For example, assume you have a $250,000 mortgage but your property is now only worth $175,000.

Through our short sale program, your property may be sold for only $175,000, its current market value, but we negotiate with your lender and seek to convince them to accept $175,000 as PAYMENT IN FULL of your mortgage even though you actually owe your lender $250,000, thus saving you $75,000 and eliminating your risk of being forced into foreclosure.

Our primary goal is to ensure that your lender agrees to absorb the financial loss because the current market value of your property has fallen below the outstanding mortgage balance.

If you qualify for our short sale program, we show your lender that it will cost them more money to force you through the foreclosure process than if they simply agree to work out a negotiated short sale settlement that benefits you and your lender.

If your lender agrees with our negotiators to approve our request on your behalf to accept a lower amount to satisfy your mortgage through a short sale, then your property will be sold for a lower price and you will avoid paying any money out of your pocket to repay the full amount of the mortgage.

When we successfully negotiate a short sale of your property on your behalf, your mortgage obligations are eliminated, you owe nothing, the risk of you being forced into foreclosure is eliminated and you can move on with your life!

Homes@VirginiaShortSale.org

877-855-7913

Virginia Short Sales Inc.

Charlottesville, Virginia

Charlottesville realtors - you are given a double commission. One on the seller's side and then we'll allow you to relist the property for us, once we have an acxceptable offer from the bank. So there's a guaranteed 6% commission for working with us. We do not cut commissions. So bring us your Charlottesville short sales.