Are You Considering A Short Sale With Your HELOC?

my first short sale

Hi I am Kevin Kauffman and this is my business partner Fred Weaver. We’re Group 46:10, one of the nation’s leading short sale teams. One of the questions we get asked a great deal is, “I have a home equity line of credit and I need to do a short sale. Can you help me because I’ve heard that you can’t do a short sale if you have a HELOC?”

We are here to tell you that that’s not totally true. The first thing to remember is that, yes, it is possible to short sell your property if you have a HELOC. On several of the cases, our team has been able to get a full settlement on those HELOC, meaning that through the short sale process the homeowners didn’t owe any money after the short sale was closed. That is good news because, more specifically, in Arizona if you let your property go into foreclosure you still owe the full amount of money on your home equity line of credit. They could potentially file judgments against you or try to garnish your wages.

Through a short sale and working with our team, many homeowners end up not owing any money. If the lender isn’t willing to forgive the total amount of the HELOC, usually they’re willing to work out a deal with the homeowner. Please give us a call today if you have a HELOC and would like to do a short sale. We’d love to talk with you more, specifically about who your lender is and our experiences with them. Group 46:10 is here to give you assistance and suggestions on how to handle your situation and help you successfully short sell your house.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Writing A Hardship Letter For Your Short Sale

my first short sale

Are you in a situation where you feel you have to get out of your house and need to short sell it, but are wondering how to create a hardship letter? Are you wondering how to explain to the bank that you can no longer afford your property and are concerned about the red flags that it might signal to them? Group 46:10 has the answers you want.

I am Kevin Kauffman and this is Fred Weaver. We comprise one of the leading short sale groups in the Phoenix area, as well as in the country; throughout the years we have helped hundreds of people avoid foreclosure by short selling their property. We get this question frequently. We talk to homeowners just like you every day about this exact subject, short sale hardship letters and what to include. Some examples of what to include in your hardship letter are things like what the circumstances are that are causing you to want to sell your upside down house. You want to also incorporate other financial circumstances, such as divorce, medical bills or unemployment. We recommend you don’t disclose that you have a 401K or are getting a raise, for example. Concentrate only on the circumstances that are making your times challenging.

If you’re interested in doing a short sale in the state of Arizona or California, we have a document that will give you some guidelines to composing a hardship letter as well as some ideas as to factors for hardship. If you’re facing a situation where you want to short sell your property and need to write a hardship letter, please contact us by phone or via our website. If you fill out the Getting Started form on our website, we’ll contact you as soon as possible. We await talking about your specific situation with you and helping you successfully short sell your property.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Short Sale Tax Implications

Compared to your lenders, tax laws are not too forgiving so knowing the short sale tax is necessary when selling Memphis Tennessee homes for less than what is owed on it.  The challenging economic situation has added a lot of homes in the foreclosure list, and has made a lot of people jobless.  On the other hand, mortgage requirements are getting stricter which makes refinancing quite hard.  Given all this, the homeowner has no choice but to ask permission to the lender to request for a short sale in order to avoid foreclosure.

In the United States, an Act of Congress known as the Mortgage Forgiveness Debt Relief Act has provided some relief for those homeowners who have undertaken a short sale on their primary residence which allows elimination of the tax for debt forgiveness of up to $2 million US Dollars.  Nevertheless, short sale taxes are required because the forgiven debt is considered income for the borrower. If you are not aware the lender has a tax form for the borrower to list the details of the debt forgiveness when a short sale has been carried out.

What happens is that the lender forgives the borrower’s debt which is $200, 000 in order to avoid foreclosure and in turn, the lender is taxed with an applicable rate on the said amount at up to 9.3 percent rate, which is almost $19, 000 tax.  This can be too big and not everyone has this amount so the homeowner can make talk to the lender for some arrangements like reduced payment.

Take note that a short sale can reduce a home owner’s FICO credit score by as much as 200 points, but this is better than foreclosure because it reduces your FICO score, and prevents you from getting another mortgage.  Thus, every Richmond Virgina homeowner needs to be aware of Richmond Short Sales taxes before they enter the process.

Knowing The Truth Regarding The Tax Implications Of Completing A Short Sale

my first short sale

Hello there everyone my name is Kevin Kauffman with Group 4610, your short sale specialists in Arizona, thanks for trying out my blog today. I work with Keller Williams Realty in the Tempe area and use my blog to provide householders with valuable info on their options for avoiding foreclosure. If you’re considering a short sale or have questions about the process feel free to visit my web site or contact me today to discuss your situation.

For my weblog at this time I wanted to speak concerning the possible tax implications of a short sale and what you have to know. If you are potentially hesitating to do a short sale because you are afraid of the tax penalties it’s best to know the facts. Loads of potential clients ask me this very question and the answer depends solely on your distinctive situation. I can let you know that the Mortgage Debt Relief Forgivness Act of 2007 will waive all tax consequences of a short sale in the event you qualify. If your underwater property is your main residency, below $2.5 million {dollars}, and not a industrial property you stand a great likelihood of qualifying. Unfortunately, the Debt Relief Act is ready to run out at the end of 2012 so time might not be on your side. There are also other options we can discuss with the intention to defend you from any attainable tax penalties.

The most important thing to remember is to get advice from a short sale professional and not depend on what your neighbor or cousins advice is. I am not a certified accountant but having years of short sale expertise I can help explain precisely what your options are. To discuss your particular state of affairs please give me a call or fill out the short sale information packet on my web site to get started. Thank you for your time and have an incredible day.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Short Sale: Tips To Close Fast

When dealing with a short sale, the first thing to think about is seller motivation.

What is it?

It sure isn’t about getting the highest offer.

Seller motivation may be all about a fast resolution to limit credit damage.

Is a qualified buyer more important than highest offer?

We say it sure could be!

Closing the sale and avoiding foreclosure is MUCH more important than highest offer to the distressed seller. Working with the right buyer with a short sale is one of the keys to closing these transactions today.

Losing short sale buyers remains one of the biggest issues for the seller.

It’s an issue for the Realtors too because they’re spending a lot of time trying to close the short sale and losing buyers is one of the most frustrating realities of a short sale in 2010.

Every agent out there will tell you about these difficulties with short sales..

This is where an investor can offer a lot of value to the homeowner. Having a committed buyer could be the difference between short sale success and failure for the homeowner.

So how can you find a committed buyer?

Here is a tip: Search Yahoo and Google for one.

This is an easy task for a listing agent or a homeowner that could result in an immediate offer on the property.  Without the offer you can’t even begin working with the lender on approval of the short sale. 

In today’s market you need to look at unconventional options.

Get on the internet and search terms like “Chino Valley Short Sale” for short sale help in Arizona like Or search “Pittsburgh Short Sale” for an investor in Pennsylvania such as

Investors are out there and they can help distressed sellers. Search the internet for real estate investors and you will find them.

Search your area and terms like foreclosure, short sale, real estate, etc. You can find them in every part of the country.  Combine your local market with these search terms.  Another example is “Morris County Short Sale” for companies working short sales specifically in the Morris County, New Jersey such as

Updates With Equator And Short Sales

Short Sale Power Hour

We thought we would offer you a small update on Equator. It has been roughly one year since REOTrans, now known as Equator, was implemented into the short sale process by Bank Of America. As our viewers know, we were a part of a discussion with Gary Haygood at Bank of America. He chatted about Equator and how B of a uses Equator.

GMAC uses Equator and processes files very fast. They tend to procedure folders faster than Bank of America. Equator is apparently being tested by Wells Fargo and we would expect it to be implemented by the last part of the year.

With regards to B of a and Equator, a lot of changes have been made. There are also a lot of changes coming in the future. Now that they have seen this software work, they understand that there are many things they can do better.

Some of the changes we have seen include an automatic email when you submit your folder for approval and a tutorial each time you open a folder. Almost every portfolio that Bank of America has is in Equator now. That is a noteworthy change.

Gary Haygood has some thoughts about how Equator should be used. One of the large concerns that we are asked about is the number of counteroffers that happen. We instituted a policy that after the third counteroffer, we are getting on the phone. Gary Haygood mentioned that after the initial counteroffer he would love to see a phone call. Basically, this is an effort to get around the back and forth being done through Equator. Now that they have enlarged their workforce, they can deal with more phone calls. The other part that Gary mentioned is that outbound calls will be made to realtors after your package has been submitted but you are not negotiating yet.

Moreover, making the negotiators tasks visible to the realtors is a change that is being considered. If the negotiator has five days to close a task and just three days have passed, we don’t need to disturb the negotiator.

Look for each and every one of these changes and more as Equator helps the short sale specialists of the planet enhance their procedure.

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Freddie Mac Feels Forbearance Financially Fits

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We would like to talk about an item titled “Freddie Mac CEO: Mortgage Forbearance Is Preferable to Foreclosure.” It appears that the Freddie Mac CEO thinks that forbearance is a workable option for keeping house owners in their houses. Freddie Mac considers forebearance highly useful.

There are some things worth noting in this article. Firstly, Freddie Mac owns 25% of the portfolios, but only 10% of the deliquent loans are theirs. Second, the article states how many borrowers they helped steer clear of foreclosure, but the editorial is about forbearance. Nonetheless, no where in the editorial does it give a gauge about how many people a forbearance has helped.

For those that may not be familiar with, a forbearance is merely a halt in your mortgage payment. The lender agrees to not collect payment for a certain period of time and they will not report to a credit reporting bureau. After the end of that forbearance, the house owner comes up with a new payment plan that includes the six months of payments that you did not make. Do forbearances aid a few people? Yes. However, they don’t concentrate on lots of of the real problems. They don’t concentrate on the fact that most mortgages are upside down. They also do not deal with they fact that a lot of people do not want to stay in their upside down properties. Also, they give the property owner higher mortgage payments after the forbearance. Forbearance is a wonderful idea for a tiny number of house owners.

This really frustrates us since we did a webinar and a live seminar last week with real property owners that are hearing so many lies and wrong information. They think that there are a lot of options to evade foreclosure, but when you really look at the choices, there are not very many suitable choices for house owners.

Agents don’t control banks or investors or the government. Nonetheless, we can assist the house owners. Start educating your customers on their real choices.

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GMAC Bank Short Sales

Short Sale Power Hour

Hello and welcome. We are Kevin Kauffman and Fred Weaver, Arizona’s leading short sale specialists. We’ve closed more than 300 short sales in the Paradise valley area. Nevertheless, this website is not about us. It’s about you, the home owner. This website is designed to give you some information and clarity on the subject of short sales.

We’re here today to talk to you about GMAC lender. Owned by Ally Financial, GMAC has made lots of changes over the previous few years. They have just shifted their process to Equator, which is a streamlined online system for handling short sales. Their method has gotten much smoother in recent years.

When we get an offer on your house, we upload all of that information into the equator software. The package is assigned to a negotiator at the lender. Then the bank orders a BPO to find out what the home is worth and then they make a conclusion on the offer. Essentially, GMAC is making short sale decisions in 60 days of getting a contract accepted. Equator is making this process much faster.

Having completed lots of short sales at GMAC, we are very proficient in moving through the short sale procedure with Equator. Our knowledge, joined with Equator, has made the short sale procedure 30% quicker than it ever was before.

Please fill out the form on our blog or get in touch with us today. We can aid you through this complex process. Whether your mortgage is presently held with Wells Fargo, Bank of America, Chase, and any other bank, we have dealt with all of them successfully closing 90% of the short sales that we work with. Because the nationwide average for successfully closing short sales is only 30-50%, you have to hire someone with a track record of achievement. Please get in touch with us today for higher help.

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Short Sale Business, Nothing Is As It Seems

Short Sale Power Hour

Fred and Coach just got done with an event in Scottsdale with a Bank of America executive, hosted by Brian Gubernick. This episode is for all of the specialists out there that don’t take the time to inform themselves, trust everything they read and listen to what negotiators say.

In the present day, with all of the changes going on in the short sale business, nothing is ever what it seems. Secondly, you need to get your cranium out of the sand and construct your own decisions.

What we found today, listening to the Bank of America supervisor, is that lenders do not truly know what they are doing any more than the real estate realtors. So, if you ask ‘How” to do anything you are instantly disempowered.

As real estate specialists, we have to be more committed to learning our craft. This is not a game that you fly into simply to try it out while ruining twelve home owners lives. You need to understand what a deed in lieu is, what a loan modification is, what a trustee auction is, and dozens of other things.

It was awfully apparent that the Bank of America executive wasn’t happy with the real estate community either. There are too many real estate agents that are misinformed or just plain lethargic. Get the factual details from people that are checking the sources or verify the sources yourself! Real estate realtors, we love you. Still, it is time to lift up our profession.

We’ve got a special offer for you. If you go to, you can get our 12 hours of teaching for a significantly reduced price. Please inform yourself. It is time to take the real estate vocation to another place. Also, just because you are well-informed, that doesn’t mean you have learned to think for yourself. Nothing is ever what it seems.

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Create Urgency Among Probable Short Sale Clients

Short Sale Power Hour

For today, we would like to reveal a few of the changes that we have made in our process and our scripts to create urgency in sellers. In the short sale world, getting people to gather the documentation and make this complicated choice to short sale their home has generally taken 3 to 4 weeks. We have determined that we do not allow any other component of our business to operate like that so we have changed a few things.

First, Brian Gubernick led us to a resolution for this predicament. Brian requires prospective sellers to have all of their papers put together in 48 hours. Time is critical in this procedure. So, if you explain to the seller why this is vital, they will certainly understand.

Additionally, you could point out that your group has a capacity for the amount of files that they can work with. For this reason, the short sale team should just take the most urgent sellers. Waiting weeks or months is counterproductive to the procedure.

We have shifted to this process of utilizing the 48 hour rule in the previous few weeks. We have already seen a benefit from changing this procedure. Additionally, if you charge an upfront fee, think about reducing your upfront fee to those that can get their papers to you in 48 hours. This creates an incentive for the property owner to get their papers to you in a judicious manner.

One more thing that has worked for a fellow realtor we know is to have the property owner pull together their papers and then come to his headquarters for a meeting. So, he utilizes the paperwork to create urgency before the meeting even happens.

Hopefully, you recognize that time is critical to the short sale process. So, building urgency with house owners is only one way that you can improve your short sale process. It is a excellent way to eliminate the time you waste chasing house owners around to get their documents.

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