FAQs

What Do You Need to Know?

JKR will do some initial research on your property to determine what the absolutely best solutions for you might be. We will take the time to explain all of your options to you, to set reasonable expectations and pinpoint accurate time frames to eliminate any surprises as we navigate you through this complicated process.

What is a short sale?

A short sale is the sale of a property (your home) for less than what is owed to your mortgage companies, with permission from all lien holders. In other words, if you owe $150,000 on your home (with the market value being only $120,000) and your bank(s) decides to accept the $120,000 as payment in full, this would be considered a short sale because the bank(s) is/are accepting a short payoff on the loan.

Why should I consider a short sale?

A short sale is valuable because it could save you from needing to file a bankruptcy; and it could save you from a foreclosure as well. If the bank(s) and lien holders agree to a short sale of the home, they could agree to do the sale and release the debt as paid in full.

Does it make a difference what type of loan there is on the home?

If it is a Freddie Mac, Fannie Mae, or HUD they may have mortgage insurance to help the bank with their losses. If it is a conventional loan the negotiating process is the same but the out come could be much different. The Banks take each sale on a case-by-case basis.

Does it take long to close a short sale?

In the short sale, all agreements are "subject to lien holder approval". Since you, the seller is requesting a discounted payoff from the lien holder all parties must allow the lien holder to complete an evaluation to determine the value of the home and determine if the loss is justifiable. The lender wants to mitigate his losses and so the process of evaluation must be completed before approval is granted. This process can delay a closing for several months.

If the client files a bankruptcy should he still complete the short sale?

One of the main goals in the completion of the short sale is to minimize the damage to the credit of the individual. It is true that a Bankruptcy is disastrous to ones credit. Adding a foreclosure is financial suicide. Why afflict the client with both. There are methods available to have the home released from the assets included in the bankruptcy allowing the agent to complete the sale.

How long after the short sale can the client purchase another home?

The client's ability to purchase a new home is dependent upon several factors. Credit is only one of the factors. We have seen cases where minimal credit damage was caused as a result of the short sale and the client repurchased within six months with little down and with an excellent rate. A lender is most interested in the borrower's ability to repay the loan. If the problems that led to the Short sale are behind and there are at least twelve months of good credit with three or more credit accounts, he should be able to purchase with minimal down payment at a competitive interest rate. Ask your JKR representative about qualifying for a Contract for Deed status.

Why would a lender agree to take a loss on real property?

Lenders are in the business of lending money, not acquiring real property. They are required to keep their REO inventory below a certain percentage of their assets. When they foreclose and receive a property in their portfolio they work as quickly as possible to sell or turn it around. The foreclosure process is very costly. The lender will determine the current market value of the property and then contract with a real estate professional to market the property. Regardless of the amount originally owed, the home can only be sold at market value. Lenders can mitigate losses and reduce expenses by selling the property pre-foreclosure.

Why won't the lender work directly with the homeowner?

They may talk to you but many times they use terms that are industry jargon and difficult to understand. Remember it is their job to protect the bank's asset, not help you save your home. When faced with the decision to liquidate the property, a lender must hire a professional to evaluate all of the marketing costs and value of the property. That is why an attorney is hired which as actually working as a very highly paid bill collector. Try and avoid this at all costs!

Can I sell a property that has multiple liens?

Liens against a property are prioritized according to date and time of recording. When a property is sold "short" the loan in first position is paid the majority of the proceeds. All others are pretty much happy to get what they can. All lien holders can be negotiated with.

How does a short sale affect my credit?

There are as many opinions about this question as there are attorneys. When a borrower fails to pay his loan as agreed and falls 30-60-90 days behind he is considered in default. When the lender files a "Notice of default", which is recorded with the county recorder, this begins the foreclosure process. At this point, the majority of the damage to ones credit is done. It is actually considered a positive step if the borrower sells the property. The credit scores will recover faster, with a loan "settled for less than was owed" than it will with a completed foreclosure.

Why should we use JKR to help save our home?

This is what we do every day! We are experts in the field of real estate and utilize many resources on a national level to help facilitate the process of stopping a foreclosure. Saving your home is our number one priority! If that can't be done we will work efficiently to help you sell it via a short sale so you can move on with your life. WE are working for you not the banks.

Can I sell my property for cash?

YES. Investors do buy property for cash . of course it depends on the terms of the deal. This option works best if you are facing foreclosure and have a sizeable equity position in the property.

Can this work for commercial property as well?

YES, it is possible to negotiate short sales in commercial situations as well.

What is the cost?

The initial consultation is FREE . JKR must first determine if it may be possible to stop the foreclosure process. If we determine that the circumstances exist where the process could be stopped we will begin the full application process which carries a $49 fee. Upon determining that either a renegotiation of your mortgage or short sale is possible JKR will begin negotiating with your lender. The cost depends on the severity of your case and carries a minimum fee of $995 ranging up to $1495. JKR may be willing to work our a fee pay plan in certain situations. Don 't be fooled into thinking that anybody will take on the task of helping you resolve your situation for free. Remember that a bank will require you to pay a portion of the backowed payment if a resolution is worked out so you must be prepared to pay something in order to stop the foreclosure in most cases.

Do I have any other options?

YES. The Federal Housing Authority (FHA) has just released a new loan created specifically to refinance homeowners that could not afford their mortgage payments when their adjustable rate mortgage payment increased their monthly payments.

Can I Stop Foreclosure?

YES. JKR will contact you to verify your info rmation, discuss your situation, and qualify you to determine what options you may have. We will help you explore every avenue, analyze your short term and long term goals, and help you make a decision based on all of the facts. You typically will have one of the following options 1) renegotiate your terms, 2) an outright sale, or 3) a short sale.