Who we are:

We are local and licensed Realtors that specialize in: Short Sales, Bank Owned Homes, Home Auctions, Foreclosures and other distressed property in the Portland Metro area. Educated and experienced Short Sale Experts offer 100% FREE services to home buyers.

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What we do:

We listen to you and determine your needs and criteria for a home. We then start the pre-approval process to figure out your price range. Discuss the short sale process in detail so there are no surprises later. We then SEARCH for those homes. After you find the home, we provide you with all the required forms and documents to submit an offer. Our agents work directly with you and guide you throughout the process.

Things You should know about Short Sales:

1. All closing costs
2. Is the home is sold “as-is”
3. If you can have a home inspection
4. If you need to write the offer on the Lender’s contracts
5. Will the home be clear of title (will all the liens be paid off?)

What does a Short Sale mean?

A Short Sale occurs when a homeowner owes more on their loan than what the home can sell for under current market conditions. It’s usually the first step in the foreclosure process. This is a much better option than having a foreclosure on a credit report. The Lender must agree to all terms, conditions, and price offered by the potential buyer of the home.

Are Short Sales a good deal?

Yes, because these homes can cost the lender time and money to hold the home while the foreclosure process happens. These lenders will consider short sales because the home can sell quickly, thus avoiding the the expenses of holding, possessing, marketing, and selling the home. Lenders will often times accept a lower purchase prices allowing buyers to get a bargain, and the sellers to prevent foreclosure. This does take longer, but many savvy home buyers are finding it worth while.

How to contact Us:

• Sign up for AUCTION ALERT
• Email: SoldByAaron@gmail.com
• Call Direct: 503-332-9777

Facts about Short Sales

Negotiating a short sale between the borrower and the lender takes skill, patience, and expertise. Everyone involved in the transaction needs to know what to expect. These are facts that will help Portland homeowners understand short sales

1. Your credit rating will drop after a short sale, but not as much as with a foreclosure. I have seen estimates of a drop of 80-100 points off one’s FICO score. Much better than a foreclosure.
2. They will receive a 1099 for forgiven debt and will owe taxes on the amount. That may change with future legislation.
3. The lender may ask the seller to sign a promissory note for all or part of the forgiven debt as a condition to the short sale. This could be attached to other assets if the note is not paid when due. This may be rare, but it has been known to happen. Remember, everything is negotiable.
4. The US House of Representatives has passed the Mortgage Cancellation Tax Relief Act (H.R. 1876), which would eliminate taxes on any forgiven debt on a principal residence through a short sale or foreclosure.
5. Chances of getting a mortgage during the next 12 months are almost zero. However, if you have paid all your other bills on time, your credit score will probably improve rather quickly.
6. The short sale process may take months. This is no quick process. It can easily take three to four months at least.
7. Buyers may not have the patience to wait for the lender’s approval and may back out. This is a risk the seller takes when a contract is signed. It is advisable to make sure the buyer understands the short sale process and is willing to hang in there for the time it takes.
8. All commissions, expenses, fees, and closing costs can be wrapped into the short sale so the seller has no money out of pocket.
9. There is NO COST associated with the short sale for the seller.

Things to keep in mind about Short Sales

• Your short sale transaction may qualify as your main residence and a capital gain tax exclusion as per IRS code 121
• Because of your financial hardship you may qualify to exclude the ordinary income due to financial insolvency and or bankruptcy as per IRS PUB 908 and PUB 544
• Other acceptable hardships that may help you exclude your capital gain from being taxed are: unemployment, employment change, divorce, health, multiple births in same year etc. as per IRS code 121 and IRS pub 523.

How does the short sale process take place?

A real estate short sale takes place when a home owner and the lender agree to sell the real the to a third party for less than what is owed to the lender.

The home owner gets permission from the lender to sell a property for an amount that is less than what’s owed on the property. A short sale does damage credit and can consume hours of the property owners time so why would anyone elect to proceed? Because the alternative may be worse. A homeowner who is behind on mortgage payments could possibly be facing foreclosure.

If a lender agrees to a real estate short sale, the seller may still owe the lender the difference between the loan amount and the amount the property is sold for. Depending on the amount, this may still be a better choice than a foreclosure. Foreclosures, and short sales, both affect credit scores and the ability to purchase a home, but a short sale will cause less damage in both areas. With a foreclosure, a credit score can suffer 250 points or more. A short sale typically lowers the credit score about 80 points. Keeping a decent credit score is a big advantage to avoiding a foreclosure.