How It all works
Sell Your House In 3 Easy Steps
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CALL US TO SCHEDULE A VISIT
Give us a little information about your house. You can do this by calling us 516-773-6222 or by using the contact form on this website.
GET A CASH OFFER
We will contact you to arrange a visit and evaluate the condition of your house. If buying makes sense from an investment standpoint, you’ll get a cash offer for your house. We’ll even provide you a report listing all of the comparable sales in your area
WE CAN CLOSE QUICKLY
You are under no obligation to accept the cash offer. But if you do, we’ll set up a closing time that works for you, so you can get your cash and move on as quickly as you wish.
A VERY BASIC EXPLANATION OF PROBATE
Probate is the act or process of proving a will is valid and reflects the true wishes of a deceased individual, identifying and inventorying a decedent’s property, paying any taxes and debts and distributing the reminder to the beneficiaries named in the will or according to state law. An easy way to think of the probate process is as a script that guides the orderly transfer of an estate according to specific rules created by each state.
How does the probate process work?
Probate works a little bit differently depending on which state law is being applied; however, it usually works like this: When someone dies, if they left a will, the person named in the will as the “executor” (or in some states the “personal representative”) will need to file papers with the local probate court. When someone dies without a will, the court will appoint someone to act as the executor of the estate. Depending on the complexity of the estate an attorney may be necessary, and in any case hiring an attorney can help the executor navigate the sometimes complex web of rules that must be followed when probating an estate.
Once the court accepts the will as valid, and the executor is approved by the court, the executor must track down all assets that the decedent owned during life. Obviously, this can be quite a chore if the decedent did not leave details regarding owned stocks, bonds, financial institutions where accounts were held, insurance policies, etc- a major reason why planning during life can go a long way in helping loved ones after death. Once all assets are tracked down, the executor must take steps to appropriately secure and manage them while the probate process plays out (anywhere from a couple months to a year or more). The executor will then need to identify any debts that the decedent may still have held upon death, identify all beneficiaries, and notify any creditors that the decedent has passed away.
Creditors will then need to be paid out of the estate funds, after which the beneficiaries will receive anything that may have been left to them. Depending on the contents of the will, and on the amount of debts, the executor may have to decide whether or not to sell certain property to accommodate all creditors and beneficiaries. For example, if the will makes a number of cash bequests but your estate consists mostly of real estate, property might have to be sold to produce cash. Once the court is satisfied that all creditors have been paid, all beneficiaries and assets have been identified, and all taxes have been paid, it will grant the executor permission to divide the remaining assets among the people named in the will (or if there is no will then to certain individuals based on state-specific laws).
A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. The foreclosure process occurs when lenders repossess the house, often against an owner’s will…. Furthermore, a short sale is far less damaging to your credit score than foreclosure.
Whether you should do a short sale or let the home go to foreclosure depends on several factors. While for some homeowners, it is easier to throw up their hands and let the bank take the home, that might not be the wisest thing to do. Regardless of which approach you choose, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.
Short Sale Benefits
Here are a few benefits for doing a short sale:
- You are in control of the sale, not the bank.
- You may sleep better knowing who is buying your home.
- You will spare yourself the social stigma of the “F” word, foreclosure.
- Contrary to popular belief, you can often stay current on your payments and still apply for a short sale.
- Your home sale will be handled like any other home sale, with respect and dignity.
Buying After a Short Sale
Fannie Mae’s 2016 guidelines allow you to reapply for a mortgage four years after a short sale with a 10 percent downpayment. If you sold your home as a short sale due to extenuating circumstances, you can reapply for a Fannie Mae-backed mortgage after two years with appropriate documentation of the circumstances. You may also qualify for an FHA loan one year after a short sale.
Bear in mind that Fannie Mae and FHA guidelines are not a guarantee you will be able to buy a home after suggested timeframes. Banks have the final say and often include overlays that can change the guidelines set forth by the government. Ask your loan office to clarify before relying on federal guidelines.
Affects on Credit
A short sale may be considered to be a derogatory mark on your credit even though credit bureaus do not use the word “short sale” on your credit report. Your credit report may read “paid in full for less than agreed” or “settled for less,” among other categories. Certain HAFA guidelines allow for “no hit to credit” and can show up as paid in full. Depending on your credit history, Myfico.com offers two examples in which a credit score could fall significantly after a foreclosure. Generally, a foreclosure remain on your credit report for seven years.
Judgments are often negotiated between the seller and the short sale lender. In some states, such as California, if the home is your personal residence and was financed through purchase money, there is no deficiency judgment. Banks are generally unwilling to negotiate deficiency judgments with the homeowner after a foreclosure. In California, for example, according to the California Association of Realtors, a deficiency judgment may be filed regarding a hard-money loan if the lender forecloses under a judicial foreclosure versus a trustee sale, or if the second loan is a hard money loan and the sale takes place as a trustee’s sale.
Length of Time to Relocate
If you’ve had a foreclosure notice filed, you may be able to postpone that action while the bank considers a short sale. The wait for short sale approval can be from two to three months, or longer. In a foreclosure, unless prior arrangements have been made, the lender may want you to immediately vacate the property and may commence eviction proceedings if you delay.
Here are a few benefits for choosing to do a foreclosure:
- It’s an immediate solution.
- You can stop making payments and live in the home until you get kicked out.
- For some, it’s revenge; you might feel better initially telling the bank where to go when it refused your loan modification.
- If something breaks or malfunctions, you don’t have to fix it.
- You can leave the home behind and simply walk away.
Buying After a Foreclosure
lf your foreclosure was due to extenuating circumstances, you may be eligible to buy another home in three years. Otherwise, the standard waiting period remains seven years, notes Fannie Mae in its latest guidelines. Similar to its short sale guidelines, FHA allows those who foreclosed on their homes to reapply for mortgages after 12months.
Loan Application Questions
Loan applications typically do not require you to include information about short sales. You may report that you sold your home. You are, however, required to answer the question: “Have you ever had a property foreclosed upon or given a deed-in-lieu thereof in the past seven years.” If the lender sees you have had a foreclosure, your loan may be denied.
A personal residence is exempt from mortgage debt relief on a federal level as long as the government continues to extend this exemption. Some states still tax you unless you qualify for an exemption. An investor is not exempt from mortgage debt relief, subject to certain conditions. For owners who foreclose on their homes, some lenders immediately send out 1099s, which report the amount of relief as compensation to the owner, even if the owner is exempt.
We assist attorneys seeking strategic partners to assist their clients in today’s aggressive Real Estate Market.
We will provide a mutually beneficial cash offer with the possibility of closing as quickly as your client desires.
Please contact us for a timely evaluation of your client’s property.
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