Short Sale or Foreclosure

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Short SaleorForeclosure
Presented by Holly Schneidewind

• Is One Really Better
• Than The Other?

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My Agent Always Give 100

• 12 Monday 23 Tuesday 40 Wednesday 20
  Thursday 5 Friday

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What Is A Foreclosure?

• When a home owner defaults on their obligation to
  make scheduled payments to a mortgage lender, the
  lender forces the sale of the home through a
  trustee sale.
• The primary statute under which such foreclosures
  are undertaken is called the Nebraska Trust Deeds
  Act.
• 90-120 days for an uncontested foreclosure

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Foreclosure Timeline

• Default happens if the payment is not made by the
  due date per the Deed of Trust.
• Payment made after due date is delinquent.
• Lender makes attempt to contact client.
• No contact - Notice of Default filed.
• After NOD filed 30 days to bring current
• 31st day - 5 weeks of public notices
• 10-30 days after final notice sale occurs

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Foreclosure Inconsistencies

• Each lender is different in time frames.
• Expensive to file notice of default.
• Lender would rather work out a payment plan-loss
  mitigation
• Deed in Lieu-borrowers agree to work with lender
  voluntarily give up house.
• ie. Hard Money lenders file their notice of
  default on day 16 verses banks want to work out a
  payment plan so they delay filing the default
  notice because of the expense.

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What Is A Short Sale?

• Agreement between lender and note holder to pay
  back less than full balance upon the sale of
  the home by the home owner.
• When the lender decides to forgive all or a
  portion of a borrower's debt.

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Short Sale Timeline

• Homeowner communicates with lender to accept less
  than what they owe them this happens prior to
  Notice of Default being filed.
• Lender approval process of short sale requires
  similar documentation to that of a mortgage.
• Packet of seller information goes to bank board
  for review could take 30 days or longer for
  approval, counter, or denial.
• When to start the short sale application to
  lender?

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Tips Tidbits

• Lender views short sale and foreclosure similar.
• 3 years to wait before qualifying for another
  mortgage in both cases.
• Extenuating circumstances will shorten the time
  period before borrower is eligible for new loan.
• Borrower can show good faith to a lender by
  working on payment plan for the amount owed.
• Not all loans are the same. Make sure your
  mortgage broker offers a variety of programs to
  ensure the best fit for your customer.

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So Is One Really Better Than The Other?

• Loss Mitigation
• Short Sale
• Foreclosure with deed in lieu
• Foreclosure by investor

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It Depends.

• Just as each mortgage we do is tailored to fit
  each persons needs. So will be the final
  decision as to which path the home owner will
  take.
• But good sound advice is step number one!
• Consult your Mortgage Broker for any questions!

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Thank You!
www.eaglemortgagecompany.com 402-397-7180