Your Miranda Rights:

Please understand that K.L. DeLany Company are assisting your lender to collect a debt from you and any and all information provided by you to collect that debt will be strictly confidential and solely used for this purpose only.

1. Something to think about “Loan Modification”????:
   
   Before you consider a “Short Sale” please keep in mind that most lenders will consider a loan modification with you. This allows you to stay in your home by reducing your monthly payment. Also by staying in your home you reduce your principal loan amount each month thus making selling your home at a later date financially easier.
   All lenders handle Loan Modifications differently so please refer any questions about Loan Modifications to your current loan provider.
   
   
2. What is a “Short Sale” and is a Short Sale the right step for you?
   
   Home sellers should consider a “Short Sale” when the value of your home is LESS than the amount of their outstanding loans. For example, if your home is worth $100,000 but you have a loan of $110,000 then a short sale is a consideration.
   
   However, if you do have to sell your home you basically have four options.
   
   
   1. First, you can bring cash to the table at closing. In the example above you would sell your home for $100,000 and pay another $10,000 to the lender out of your pocket to pay off the loan on your property.
      
      
   2. Your second option is to pursue a “Short Sale”. You contact your lender, explain the circumstances and convince them to take less than full value of their loan. When contacting your lender ask to speak with their Loss Mitigation Department. See Below! Please keep in mind that most lenders will not consider a Short Sale with you until you are behind 2+ payments unfortunately.
      
      
   3. Your last option is to let your lender Foreclosure on your loan. At this point your lender will auction your home at a Foreclosure or Trustee's Auction at the local courthouse steps. Once they have foreclosed your lender will force you out of your home by either “Cash for Keys” or an “Eviction” .
      
      
   4. “Cash for Keys or Relocation Program” This is where your lender will offer a determined amount of money in return you must vacate the home by a time and date set forth by you and the new owner. This is your very best option because this will help with your moving expenses.
      
      
   5. “Eviction” The local sheriff will show up at your door step with a moving crew and set your personal belongings to the curb. It will be your responsibility to remove these items once the eviction is complete.

A helpful tool in influencing your lender to consider a short sale with you is to have a Real Estate Agent do BPO or Broker Price Opinion. At this point your Realtor will look at your properties current condition and home details then use this information to compare with properties that are currently active on the market but more importantly properties that have been sold in the last 6 months. After reviewing the above your Realtor can make an informative decision as to what your property can potentially be worth in the current market place.

3. Below are items that most lenders will require in order for them to consider a Short Sale:
   
   
   1. Cover Letter
      
      
   2. Hardship Letter – See below for more information!
      
      
   3. Financial Information
      
      
   4. Have an idea of what your home is currently worth in its current condition. See Above for the best way to determine value!
      
      
   5. Estimated Closing Costs. Please see the page that says estimated closing costs!
      
      
   6. Last 2 current pay stubs.
      
      
   7. Last 2 months of bank statements.
      
      
   8. Last 2 years of W-2’s and possible last 2 years of annual tax’s
      
      
   9. Typically your lender will require your home to be currently listed for sale. Keep in mind if you have a contract with a buyer the lender will require a copy of the contract so that way they can consider the terms to see if they will consider the short sale.
      
      
4. Hardship Letter:
   
   A Hardship letter is a letter directly from you or your representative explaining the reasons for requesting a short sale. Reason could include:
   Job loss, divorce, medical issues, payment increase, job relocation, illness, military obligations, property condition, too much debt, death of spouse, etc…….
   
   A sample letter could be:
   
   Date:
   Lender Name:
   You’re Address:
   Loan Number:
   
   Dear Sir/Maim,
   
   In this section explain that you are requesting consideration for a Short Sale and the reasons for the consideration.
   
   Thank you,
   
   Borrowers Printed Name
   
   Borrowers Signature/Date
   
   Co-Borrowers Printed Name if Applicable
   
   Co-Borrowers Signature/Date
   
   
5. Check with your Tax Consultant before doing a Short Sale– Very Important!!!!
   
   Contact your tax consultant because you could be liable for tax money for the difference in what you actually sell your home for and what you owe. For example: If you sell your home for $80,000 but your current loan pay-off is $100,000 the difference is $20,000 that you could be held accountable for taxes. In some cases your tax consultant could ask for a reduction or forgiveness under these circumstances.
   
   
6. Will my Credit Score Affected by a Short Sale?
   
   Unfortunately Yes! By doing a short sale your lender is agreeing to take a loss on your loan therefore directly affecting your credit score. Typically a Short Sale will have better results to your credit then if your lender were to foreclose upon you.

To request a meeting with a Short Sale Specialist or general questions please contact us!

Thank you.