We Do Short Sales


Do you owe MORE than your home is worth?

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Having difficulty
making your monthly
mortgage payments?

Let us help you!


We have helped many homeowners avoid foreclosure and we can HELP you too!

A total of 9.7 million American households still have “underwater” mortgages, meaning they owe more on the home than it is currently worth. Homes in the lowest price tier are most affected, according to data released from Zillow. May 2014

DON’T walk away or let the bank foreclose on your home!
In these difficult financial times, many hard-working Americans are faced with a growing problem – they owe more in their mortgage than their home is worth and may be unable to make mortgage payments. What they often don’t realize is that foreclosure can be avoided. They can SHORT SELL their home !

In many cases we can negotiate with the bank to accept less money than what is owed and you may walk away with some cash without owing the bank anything. This is known as a SHORT SALE. You will not have to pay any legal fees or commissions. We handle the entire short sale process from start to finish and our services are 100% free – we will never charge you anything!


Benefits of doing a Short Sale with FARM Development:

  • Avoid Foreclosure; We will work with your lawyer, contact your bank, see where you are in the process and let them know you’re proactive, cooperative and plan on selling your home to avoid foreclosure.
  • Get Paid to Sell: We will negotiate a seller incentive with your bank to get them to pay you to sell your home and move. It doesn’t matter what you owe or what the house is sold for. We have gotten homeowners paid as much as $30,000.00!
  • Save your Credit: A foreclosure sale would negatively affect your credit for years to come. In a Short Sale, your mortgage shows as Paid in Full !
  • Move Out on Your Own Terms: If you live in your home, stay in your home during the short sale process. We negotiate with your bank to get you the time you need to relocate.
  • Become Mortgage Free: We negotiate with your bank to accept whatever your home is sold for as payment in full! First mortgage, second mortgage, home equity line? They are paid in FULL!.
  • Become Debt Free: We will negotiate with your creditors, on your behalf, to eliminate all liens, judgments, fines and monetary violations. After closing of title, not only you become mortgage free, but you are also free of debt!
  • Get FREE Legal Representation: we work directly with a network of lawyers who will accept payment from the bank and never take upfront money from you.
  • No Need to List your Property: We are direct buyers. When we enter into an agreement with you to buy your home you are not facing the risk of securing a buyer once your short sale is approved. You have a strong, professional buyer from the get go!
  • Hassle Free Closing Guarantee: we will buy your house “As ls” All CASH FAST – in Any Condition & Situation and Close IMMEDIATELY after obtaining short sale approval.
  • Get a Helping Hand: Although we are a direct buyer we would be happy and willing to work with your realtor if you are already represented by one. We would even recommend top real estate brokers to work with you if you want further assistance by an independent third party. Remember, the broker’s commission will be fully paid by your lender.
  • SOS Service: If you have received a notice about a forthcoming foreclosure auction or if you believe you need IMMEDIATE assistance, we will review your case within 2 hours from the time you called, and we would give you top priority in order to save you and your home from foreclosure.


Questions and Answers

What Is a Short Sale?

Short Sale Definition: A short sale or “short pay” is a type of real estate sale where the lender allows a property owner to sell a property for less than what is owed on the mortgage balance, and it is one of the best options for people who are trying to figure out how to stop foreclosure of a home. The proceeds of the sale go to the lender, and in return, the seller is able to avoid foreclosure.

For example, If Tim’s current loan balance on a property is $500,000, but the property is now worth only $300,000, Tim might be able to short sell the property. This means that Tim would sell the property for whatever he can get for it (around $300,000) and all of the proceeds from the sale would go to the bank.  Out of these proceeds, the bank would pay realtor commissions, their portion of title/escrow fees, and any other pre-approved costs. For taking action (and saving the bank from a costly foreclosure) Tim would be rewarded with not having a foreclosure recorded on his credit.

Lenders only agree to short sales if they receive a full and complete package meeting the specific guidelines of that particular lender.

What is the process for a Short Sale?

If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with us or with a real estate agent or broker (if you were already represented by one) to get the short sale approved and sell your home. However, your mortgage company will also be working with us every step of the way to:

  • set the sale price,
  • collect financial information and negotiate with other lien holders (i.e., your second mortgage company) if applicable,
  • negotiate a reasonable price with the bank,
  • agree to the terms of the sale, and
  • work with us and your mortgage lender to finalize the sale.

In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.

A Short Sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. If you are unable to sell your home, you may be able to transfer the ownership of your property to the owner of your mortgage (also called a Mortgage Release or Deed-in-Lieu of Foreclosure).

How Do I Know If it is My Best Option?

In most situations, people have three options available to them.  The first is to keep the property, and this means making the mortgage payments every month, and making up any past due payments. The second is to short sell.  The third is to foreclose (we NEVER recommend a foreclosure) Here are some reasons why many people decide to short sell:

  • They owe more than their home or investment property than what it’s worth, and it does not make financial sense to keep the property.
  • They are struggling to make the mortgage payments.
  • Their interest rate, monthly payments, or mortgage balance has been (or will be) increasing.
  • Relocating to a new area and paying for the current property and a new living situation is not feasible.
  • They have been denied for a loan modification, or provided a “temporary” plan.

How Do I Short Sell My House to Avoid Foreclosure?

The first step is to contact us either by phone at 646-351-0935, or by filling our online form –and we will answer any questions you may have.  If a short sale is right for you, we would like to meet with you and review the documents that your lender will require for your file. Our role is to successfully negotiate with your lender and get the short sale approved. The process will be 100% hassle free!

Can I simply deed my property to someone else and avoid the hassle?

Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit.

Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property.

Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.

What sort of hardship would my lender consider legitimate?

To some extent, that will depend upon the mortgage company considering the Short Sale request. Generally, so long as the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the Short Sale request will be processed by the Loss Mitigation Department. A big key to getting Loss Mitigation to accept a hardship is to submit a strong hardship letter. The hardship letter sets the tone for the entire file.

Below you will find a list of “hardships” that are common and frequently accepted by mortgage lenders.

  • Family illness or injury
  • Illness or injury in the extended family – particularly if it forces relocation
  • Job relocation when the property is equity deficient
  • Job loss or significant income loss
  • Divorce or split of domestic partners
  • Adjustment in mortgage payment or unforeseen increase in living expenses

I am current on my mortgage; will my lender consider a Short Sale?


The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. Based on our experience in the New York Metro area, typically, you would need to be 2-3 months behind on your mortgage before you can have a conversation with your bank.

Why would a mortgage company agree to accept a Short Sale?

There are actually several reasons why a mortgage company would approve a Short Sale payoff, including the following;

Legal Concerns – Mortgage lenders have come under legal pressure to work with borrowers to equitably resolve situations where borrowers are unable to meet their mortgage obligation, particularly when the borrower makes an effort to arrive at a compromise solution.

Wall Street is Watching – Mortgage lenders rely heavily on their ability to package and sell bundles of loans on the secondary mortgage market. They need to sell these bundles of loans in order to put the funds back to work by loaning the money again and collect loan fees along the way. If mortgages perform poorly after they are sold it could impact the lender’s ability to sell their loans on the secondary market. A successful Short Sale gets the loan payoff resolved quickly.

Asset Management Expenses – If a lender acquires a property through foreclosure, the property will be managed until it is repaired and resold. It is expensive to manage real property assets – homes – spread throughout the region, the state and possibly even the nation. Keeping properties maintained, keeping utilities on, making repairs and the administrative costs attached to these activities are all costs the lender would prefer to avoid. A successful Short Sale eliminates most of these costs

Reserve Requirement – Delinquent and non-performing loans place another burden on mortgage lenders. For all delinquent and non-performing loans lenders must set aside funds in reserve to deal with potential losses. These funds cannot be put to work generating new loan fees until the bad loans are resolved. A successful Short Sale lets the lender put more money to work.

I have two loans, can I still do a Short Sale?

Yes. We will work with both lenders (many times the same lender hold the 1st and the 2nd loans) to put together a Short Sale transaction. Even if the value of your home is below the balance of the 1st mortgage, we can normally get the two lenders to cooperate.

In the end, neither lender wants to own another home through foreclosure.

My property is in rough shape and needs work, can I still do a Short Sale?

Absolutely. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.

Aside from expense of completing the work, lenders are simply not set up to get the work done. They are in the loan business, not the fix-it business.

I am concerned about my credit, how will a Short Sale affect my credit?

The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter – worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit.

By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.

How Much is This Going to Cost Me?

Absolutely nothing!

Why not just let the bank Foreclose?

A foreclosure will damage your credit for up to 10 years, while a short sale shows as a settled if not paid in full debt. In fact, some banks no longer require that homeowners be past due on their mortgage to process a short sale. In this scenario your loan would never show past due. A short sale is the fastest real solution to getting past the problem.

Your goal may be to purchase a new home in the future. With a short sale you may qualify for a new home loan immediately and an FHA home loan somewhere between 18 to 36 months. Loan applications ask if you have been foreclosed on, they do not ask if you have completed a short sale.

Contact us TODAY! FARM Development has helped dozens of homeowners avoid foreclosure and start fresh. Let us help you leave the past behind, and build a better future for you and your family

 

CALL US TODAY
(646) 351-0935