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Reasons To Consider A Short Sale
 Q. Do you owe more than your house is worth?
Q. Are your mortgage payments too high?
Q. Is your monthly payment about to adjust?
Q. Have you been turned down for a Loan Modification?
Q. Have you lost your job, become ill, or lost a loved one?
Q. Do you want to WALK AWAY and not owe a dime?
Q. Are you experiencing financial hardship?
Q. Are you stressed and not sure what to do?
Q. Do you want to avoid foreclosure and get a "Fresh Start?"
Q. Are the banks calling and harassing you at work and home?
For most families, their home is their largest financial asset, however, in Las Vegas, most homes are "upside down" in value, meaning homeowners owe more than their house is worth. While it's easy to become emotionally attached to your home, it's important that you don't fall into the trap of making the decision a personal one. Home ownership may be the "American Dream," however, there is no need to go down with a sinking ship. IT IS NOT YOUR FAULT that the housing market crashed. YOU ARE NOT ALONE. Too many people refuse to recognize a mistake, and then they compound the mistake over and over by spending their entire life savings, 401(k)'s, retirement savings, and even borrow money from family to avoid accepting the reality of the situation. Surrendering a home worth half of what you owe is NOT a failure, it's a BUSINESS DECISION. Know when to say ENOUGH is ENOUGH. Your mortgage obligation doesn't need to be a prison sentence. If your home has become the single greatest source of stress in your life, then it's time to consider a short sale.
Remember, you can NEVER lose your "HOME." Many people confuse a "House" with a "HOME." A "House" is simply drywall, stucco, carpet, wood and paint. A "HOME" represents the special people, treasured memories and personal belongings which go inside. A "House" can be replaced. A "HOME" is PRICELESS. Nobody can take your "HOME" from you. Love your "HOME," for it will ALWAYS be uniquely yours.
The Loan Modification and Mediation Myth 
FACT: There is no government program that forces lenders to modify your loan.
The banks have no legal obligation to change any aspect of your loan. This decision is completely voluntary. There are government programs which provide incentives for lenders and banks to modify, but lenders still make more money by foreclosing. Additionally, the banks can roll "legal fees" into your new modified loan, which were incurred during the modification and trial modification process. This means not only are you paying your previous loan balance, you are also paying additional lawyers fees, foreclosure extension fees, late fees, etc. While the media continues to promise HELP for struggling homeowners, the fact remains that banks are NOT modifying loans to current market value. Click here to see why banks are not modifying mortgages.
Banks may agree to temporarily modify your monthly payment and interest rate, however, banks will NOT reduce your overall loan payoff.
30% of people who fall behind on their mortgages catch back up. This means that if the banks wait long enough, they know that you will borrow money from your 401(k), your credit cards, your family, or wherever else you can find it so that you catch back up on your mortgage. This is precisely why banks will not work with you until you are months behind on your house payments, after which, your credit has already been damaged. Additionally, almost half of the people who do receive modifications fall behind again within 6 months. The banks know there is a good chance that any effort it puts forth to modify your loan may result in a failure. This is why banks offer "trial modifications." The trial modification is just another tactic which banks use to trick you into paying additional mortgage payments (up to six months worth) before they deny your loan modification, or foreclose.
Remember if you are offered a loan modification, don't just focus on the monthly payment. Look closely at the terms of the loan.
1) What is the new principal?
2) Does the interest rate change during the life of the loan?
3) When does the interest rate jump back up?
4) What will the payment be at the end of the 3-5 year modification period?
Most modified loans fail for a reason, THEY ARE TERRIBLE LOANS. What is the point of modifying your loan for three to five years and then after the modification period is over, you're in the same position as when you started? The loan payment WILL jump back up, you won't be able to afford it, and home values are NOT going to double in the next five years. You will still have an upside down home where you owe more than it is worth?
A modification that doesn't solve the problem, or leaves you living paycheck to paycheck is a BAD DEAL. The goal of a short sale is to offer you a FRESH START. Don't chain yourself to a massive pile of debt by accepting a home loan modification that doesn't help you rebuild your life and your future wealth.
A short sale (also called a "Short Payoff "or "SPO") allows a homeowner to sell their home at current market value. While nobody wants to sell their home, the fact remains that millions of Americans have discovered that loan modification programs are a complete waste of time.
Why the HAFA Program Doesn't Work
On April 5, 2010, the U.S. Treasury Department initiated a new federal program known as HAFA (Home Affordable Foreclosure Assistance Program.) HAFA promises an “easier short sale process and prohibits banks from pursuing lawsuits against borrowers who participate in short sale solutions.” While The Myers Team supports any program which offers to help homeowners in distress, there are many flaws with HAFA and it's important that homeowners educate themselves in order to make an informed decision. Here are some facts regarding the HAFA program:
1) HAFA does NOT apply to all loans. HAFA applies only to non-GSE mortgages (Government Sponsered Enterprises)
2) HAFA does not apply to loans insured by Fannie Mae or Freddy Mac.
3) HAFA does not apply to borrowers who obtained FHA or VA loans.
4) HAFA is not a law. It is not legislation of any nature. HAFA is simply written guidelines for the banks to follow. It is not mandatory, and bank participation is voluntary.
5) While many bank servicers have agreed to participate with HAFA, the fact remains that the bank servicer typically does not own your loan. It is ultimately the decision of the investor of your loan whether or not to participate with HAFA. Just for clarification, your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan. (Servicers are typically banks such as Bank of America, Wells Fargo, Citigroup, Chase, ASC, Litton, GMAC, etc.) The majority of residential mortgages are owned by groups of investors (i.e. Fannie Mae, Freddy Mac, AIG, etc.) and these investors hire loan servicers (banks) to interact with the homeowners on their behalf.
6) If you have a second mortgage, these lenders are not obligated to participate with HAFA.
7) One of the biggest problems for Las Vegas homeowners is the 125% rule. If you currently owe more than 125% of the current value of your home, then you may not qualify for these assistance programs. This means that if the value of your home is $200,000, then you cannot owe more than $250,000. This disqualifies the majority of Las Vegas residents.
8) Banks can require the borrower to pay all - or - a portion of the mortgage payment during the HAFA approval process. This is not the case with a non-HAFA short sale.
9) HAFA does not apply for investment properties, vacation homes and/or tenant occupied properties.
10) A HAFA short sale does NOT stop the foreclosure process vs. a traditional short sale, where the foreclosure may be stopped with an executed contract between buyer and seller.
While the HAFA program is a “good start” the fact remains that less than 3% of residential mortgages will qualify for HAFA (based upon the above criteria.) Additionally, the HAFA program is a national program, with the same criteria being applied to all cities. HAFA does not take into consideration the specific needs of Nevada residents. The value of homes in Las Vegas have depreciated more than other cities in our nation. While HAFA might work for residents in California, New York or Seattle, it will not be the "magic pill" needed by Las Vegas residents during these difficult times.
BEWARE of Real Estate companies who promise you "CASH BACK" when you do a short sale with their firm. Many struggling Realtors who are "just now" getting into short sales are offering, "CASH BACK" as a catch phrase to entice you to use their services. This is a very misleading marketing scheme, and these unethical Realtors are refering to the HAFA claim that "eligible sellers may receive up to $3000 CASH at closing." The key words are "eligible sellers." Don't be fooled by false promises and people trying to take advantage of your difficult situation. To date, we have been unable to confirm or find even one Nevada homeowner who has received CASH BACK from the HAFA program.
Don’t expect the government to fix the housing problem. When the economy crashed, did the government bail "YOU" out? The government bailed out big banks (with your money) and even allowed them to hand out large bonuses to their executives, but what did the federal government do to help YOU and YOUR family? Previous programs offered by the federal government include the HOPE NOW and MAKING HOME AFFORDABLE programs which were complete failures. These programs promised homeowners that their mortgage could be modified. Additionally, these programs promised families that they could "keep their homes." We now know that less than 1% of residential mortgages were actually modified under the HOPE program, (a.k.a. the "HOPELESS PROGRAM") and these programs were a disaster for homeowners. The government’s primary concern is to fix the economy, and the banks primary objective is to fix their own financial situation. We at The Myers Team do not represent the bank. We represent YOU and only YOU. If you would like additional information, we will be happy to meet with you and set an appointment to discuss options which work best for your situation. The Myers Team is the most experienced short sale team in Nevada.
Why "Mediation" Doesn't Work
When homeowners get behind on their mortgage payment, many "so called" experts recommend that the homeowner should speak with their bank(s) through the "mediation process" to find the best solution. Please be advised that this may be the WORST thing you can do. BANKS ARE DEBT COLLECTORS. Banks do NOT represent you or your family in any capacity. At a mediation meeting, the bank will show up with their corporate Attorney. The Attorney (whose sole purpose is to represent the bank's best interests) will be quick to remind you that you signed a contract with the bank, and will explain that they have the legal right to sue you for a "deficiency judgement lawsuit" should the home foreclose. Additionally, the bank's Attorney may attempt to threaten you with wage garnishment and additional judgements or liens against you. The mediation process is NOT fun and very stressful. The banks' main objective with the mediation process is to see if they can intimidate you into resuming making your mortgage payments. The bank does NOT represent you, and they are NOT obligated to explain your real options. The Myers Team does not represent the bank. We are your advocate, and WORK HARD FOR YOU. Click here to see the truth about the mediation process
THE MYERS TEAM
Nevada's #1 Short Sale Team
LET OUR EXPERIENCE PUT YOU BACK IN CONTROL
SHORT SALE RULE #1: Banks do not care about you or your family. They only care about what is best for their own bottom line.
It is critical that you understand your options, and speak with someone who represents YOU and your best interests. The bank does NOT represent you. They are NOT obligated to explain your options. They are only interested in what is best for their stockholders. Anything you say to the bank over the phone is being recorded to use against you. The Myers Team does NOT represent the bank. We represent YOU and ONLY you. We are experts in negotiating with banks, to find the best solution for you and your family.
SHORT SALE RULE #2: As long as you "continue" to make the monthly mortgage payment, then banks are not motivated to approve your short sale. If you have the means to pay your mortgage, then the bank will not take your "hardship" seriously.
So why do a short sale? It's simple. The difference between a short sale and a foreclosure is substantial. At the conclusion of a well executed short sale, you will be allowed to walk away from the home, without owing the difference between the original loan amount and the current market value of the home. Additionally, banks typically report to all three credit reporting agencies that your account has been "legally settled short of full payment." A short sale shows responsibility on your credit because you made a choice to cooperate with the lender, versus abandoning the property and allowing the home to foreclose. After the completion of a successful short sale, you may be able to purchase another home in as little as one year, compared to a foreclosure or a bankruptcy which can have a negative impact on your credit for 7-10 years.
Short Sale vs. Foreclosure
QUESTION: Isn't it Easier to Simply "Walk Away" and Allow the Home to Foreclose?
 Sure, however, this is a gamble which could haunt you for years. In Nevada, banks have "Deficiency Rights" associated with foreclosure and "Deed in Lieu of Foreclosure." This means that if a property is foreclosed upon by the bank, then the bank retains the right to legally sue you for the difference. Banks have up to six years to file a deficiency judgement lawsuit against you, once your home has foreclosed, or is sold at auction after a "Deed in Lieu of Foreclosure." Banks may or may not sue, however, if you simply "walk away" then you give the bank the legal power to come after you, should they choose to do so.
A short sale is a VERY different situation. Most banks agree to release their deficiency rights after the completion of a short sale. Additionally, a short sale minimizes the damage to your credit score. A foreclosure is devastating to your credit score. After a foreclosure, banks continue to post "late payments" on your credit, even months after the home has foreclosed. This can reduce your FICO up to 400 points. With a short sale, the banks typically report that the account has been "settled short of full payment." This minimizes the damage to your credit, and allows you the opportunity to purchase a home again in as little as one year.*
Should I Consult an Attorney?
There are NO Attorneys who specialize in short sales, however, there are plenty of Attorneys who specialize in taking your money. Before you hand over your hard earned dollars to a lawyer, consider the following; In these tough economic times, many Attorneys are experiencing a decrease in clients, and are looking for ways to generate additional income. Many Attorneys who have never offered "short sales" as one of their services, are now jumping on the bandwagon and offering to do short sales for their clients. Times have gotten so tough for lawyers that even "Accident Attorneys" are now advertising Bankruptcy and Short Sale Services. Using an Attorney to facilitate a short sale is a concern for several reasons: First of all, do you really think that the Attorney you hire is going to make your short sale their top priority? Are they going to do the work themselves, or will they hand it off to their office assistants and paralegals to make the critical follow-up phone calls, send important faxes, emails, etc.? Additionally, Attorneys do not work for free. Attorneys can be quite expensive and most people who are considering a short sale are experiencing a certain degree of financial hardship. Will the Attorney guarantee their services and pay you a full refund if they fail to perform? Of course not. Who has money to hire an expensive Attorney, when you are losing your home and preparing to move, etc.? We at The Myers Team are NOT Attorneys, however, we are the most experienced short sale Realtors in the city. Our service is 100% guaranteed, meaning if the bank rejects the short sale for any reason, you do not pay us a dime. Our loyalty is to our clients. Why pay for an expensive Attorney when you can be backed by the experience, knowledge and negotiating power of the Century 21 Real Estate Corporation with no out of pocket expense?
Homeowners are always welcome to consult with an attorney to advise them of their options, however, be careful. If you follow the advice of the attorney and end up getting sued by the bank, then you will need to hire an attorney for a very expensive lawsuit. While there are many respectable and ethical attorneys out there, you must educate yourself and not place your unconditional faith in someone who stands to make a handsome profit should you get sued. Additionally, if you speak with a "Bankruptcy Attorney," they are undisputed experts at helping you go Bankrupt, however, they also make their living by convincing you to "File Bankruptcy." Bankruptcy is always an option, however, NOT always necessary.
How Much Does a Short Sale Cost?
How much money do you have to pay by choosing to do a short sale with The Myers Team? ZERO. Our services are 100% free.* While many Brokers will charge you upfront fees to do a short sale, we at the Myers Team do not. Beware of Realtors who charge you "upfront fees" for short sale service. Do they guarantee that ALL your money will be refunded if the bank denys your short sale? Probably not. We at the Myers Team know that this is a difficult time. We are here to help you and NOT take advantage of your situation. We do NOT use outside negotiation companies. We personally handle the negotiation process with the bank and will take care of your every need from LISTING to CLOSING. The Myers Team will NEVER charge you ridiculous "document fees" or "storage fees." These are fees which Brokers use to pad their pockets. You will not be required to pay for appraisal fees, inspection fees, or repairs. The only thing which you are required to pay for is the moving truck. When you use The Myers Team, to represent you, we do not charge you a dime. We ONLY get paid if the short sale is approved, and we get paid by the bank...NOT YOU. This is a guarantee.*
Las Vegas Short Sale Specialists
SHORT SALE RULE #3: Using an inexperienced Realtor to negotiate a short sale can be disastrous.
There are over a million real estate agents walking the planet and if you ask 10 of them what is a short sale and how do you successfully execute one you’d probably get 10 different answers. Then if you ask another question, that being, how many of them have actually successfully completed one you’d be very surprised. The Myers Team have been doing Short Sales for a long time...even BEFORE the current real estate foreclosure crisis.
You may have friends or family who are Realtors, and you may feel a sense of loyalty to use them, however, do they have the experience to represent you properly? The Myers Team with Century 21 MoneyWorld are short sale specialists. They have closed more short sale listings than any Realtor in Las Vegas. * A short sale is NOT part of the Realtor "basic training" and most Brokers lack the experience and skill required to execute one properly. Short Sales aren’t tough at all…if you know what you’re doing. We have a very specific system that we have implemented and have been using with great success.
Banks take advantage of Realtors who are inexperienced and unfamiliar with the short sale negotiation process. Using an agent inexperienced with short sales could end up costing you tens of thousands of dollars, wage garnishment, or even a lawsuit by the bank called a "Deficiency Judgement." When interviewing Realtors, don't be fooled by agents who claim to be "Short Sale Experts" or "Short Sale Specialists." The proof is in the results. You should be able to verify how many short sale listings a Realtor has actually closed. With short sales, experience counts!
When you're ready to sell, it's important to have an experienced Real Estate professional handle the details involved in the successful short sale of your home. As experienced professionals who have helped many Las Vegas residents avoid foreclosure, we know how to handle every aspect of the sales process - from strategically marketing and showcasing your home to making sure everything's signed, sealed and delivered by the closing date.
Why Short Sales Work
When homeowners can no longer make their mortgage payments, lenders don't want to foreclose. Short sales benefit both homeowners and lenders, and can be the ultimate "Win-Win" solution.
Short Sales Benefit Homeowners
Serious financial problems are typically due to unpredictable, uncontrollable events (i.e. divorce, death, job loss, reduced work hours, etc.). Adding the trauma of foreclosure to an already stressful life situation can create an enormous burden for the homeowner. The foreclosure process is long and painful. It is embarrassing and demoralizing. It can destroy credit for seven to ten years. It can even result in a lawsuit. Foreclosure offers a bleak picture of the future for the homeowner.
Although the end result of a short sale is similar to foreclosure (the borrower is going to lose their home) the short sale process is a great deal less traumatic than the foreclosure process.
Short sales offer the homeowner greater control and the ability to maintain dignity and privacy while getting out from under the weight of debt. Borrowers who go through a short sale can also begin planning optimistically for the future because the damage to a borrower's credit will be minimized.
These types of losses are also viewed more favorably by lenders and business associates in the future because the borrower worked out an agreement with the lender and did not simply "walk away" from his or her creditor.
Short Sales Benefit Lenders
The foreclosure process costs lenders an average of 20-30 percent more than a short sale. In a short sale, the lender recognizes that a loss on the loan is likely and is motivated to decrease those losses as much as possible. (a.k.a. Loss Mitigation) Because the management and sale of the property remains in the hands of the borrower, a short sale decreases the time a lender must spend "managing" a problematic loan in their portfolio. It also eliminates all costs associated with the legal foreclosure process, maintenance, refurbishment, marketing, and re-selling the property after the foreclosure. Short sales are usually finalized at a faster rate than foreclosure so underperforming loans can be removed from the lender's books with greater expediency.
The lender is looked upon more favorably by the public when it is perceived as having worked with the borrower to prevent a foreclosure rather than having forced a resident out of the home.
Additionally, when a lender agrees to cooperate with a borrower in distress, the borrower is less likely to "harm" the home. Recent news stories have shown homeowners who have literally "destroyed" their own homes due to frustration with the banks unwillingness to cooperate with homeowners attempting short sales. When a home is foreclosed upon, it is rarely sold at auction. Typically, after a home forecloses, the bank must take possession of the property and then try to sell the home as "Bank Owned." These properties are commonly referred to as "REO" (Real Estate Owned) properties. Once a bank takes possession of the home, they must incur a variety of expenses to make the home "sellable" (i.e. paint, carpet, landscape, etc.) When disgruntled homeowners vandalize homes, this can get quite expensive for banks and their investors.
Short Sales Benefit the Community
In most short sale situations, the homeowner continues to live in the home until it is sold. This not only decreases the number of vacant homes in a neighborhood, but the property also continues to receive regular maintenance, such as lawn care. The local homeowner associations (HOA's) also benefit as the homeowner continues to pay taxes and HOA dues during occupancy. By reducing the number of vacancies in a neighborhood, this reduces crime and the temptation for robbery. When homeowners have pools, and are able to remain in their homes, the pools are typically maintained until the short sale records. This also benefits the community because abandoned pools pose environmental threats as well as serious dangers for small children. When banks cooperate with short sales, everyone benefits. When banks foreclose, the entire community suffers.
Viewed from a wider perspective, short sales lower the number of foreclosures, which may help lessen the downturn of the housing market and improve the U.S. economy. Additionally, borrowers who are foreclosed upon are unable to obtain credit for many years following a foreclosure, which decreases their buying power and ability to put money back into the economy. Because a short sale has a less dramatic impact on a borrower's credit, he or she will be able to continue as a consumer, helping the economy out of the recession.
Where Do I Live After The Short Sale?
The rental market is currently a "tenants market." There are more rental homes available than ever, with landlords willing to cooperate with tenants who have sold their home through a short sale. Remember, people who "walked away" from their home and allowed it to foreclose might do the same thing with a lease. They pose a much greater risk for a landlord. Short Sale sellers show responsibility. WARNING: Do not sign any lease until you determine whether or not the home you wish to rent is either: A) For Sale, or B) In Foreclosure.
We understand that this may be a very stressful time for you and for your family. Our job is to get between you and the bank, and put you back in control. We are very concerned about your family, your pride and your well being. We will list your home with NO yard sign, NO flyers and with complete confidentially. Your neighbors don't need to know. Additionally, our services are 100% free to homeowners.
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