December 20th 2007 President Bush signed the bill ensuring that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This important legislation is one more step in helping homeowners through the fallout of the sub-prime lending boom. Realtors have been advocating such a change to the IRS tax code for nearly 10 years and we are proud of this recent victory.
Short Sales

By: Alan Palange  (Executive Director)
Realty Network of America, LLC specializes in securing a buyer for the property that faces foreclosure. We have teamed up with MMB & Associates which will attempt to purchase your property from the bank. As we are not Foreclosure counselors, we are determined and often successful in the prevention of foreclosure and securing an arrangement with your banking institution. We have proven experience in this field.

How the process works

We will immediately make contact with the banking institutions to discuss our desire to prevent the property from going into foreclosure. After preparing the proper paper work with the bank we will have the investment firm tender an offer to purchase the property. As the banks are currently overwhelmed this process can take anywhere from thirty days to 120 days from our initial contact with the bank.

Benefits of a Short Sale

If the short sale is successful and we can avoid the property from going into foreclosure this will make a huge difference in how this will reflect upon your credit profile. A foreclosure can damage your ability to secure conventional financing of another home for up to three years. And the immediate effect upon your credit score can be devastating, possibly reflecting in a two hundred point decline in your credit score. We feel a foreclosure should be avoided at all costs.

Sale of property prior to Short Sale

We work very closely with Realty Network of America, LLC  and our number one goal is the success in selling the property prior to foreclosure. Whoever is the highest bidder for your property and helps us in preventing the foreclosure will be the winning bidder.

Required Documents

• Last Two years tax returns
• Last two months of bank statements
• Most recent (2) Pay Stubs
• Hardship letter
• Name of mortgage holders
• Customer information Sheet
• Most recent Mortgage Statement
• Home Owners Association contact information

Once we have the required documents we will determine if the investment firm we work with will tender an offer on your property. If you have additional documentation that has not been mentioned and you feel would be helpful please supply us with anything you feel is important.  

Magic Bullet

We cannot say this enough times, there is no magic bullet. But there are logical things we can do in an effort to minimize the results from a bad situation. As my mom used to say, if it was so easy everyone would be doing it. How right she was. Dealing with the banks at times seems so frustrating it's unbelievable. But that's what we do and we do as well if not better than most.

With our team of true professionals we will guarantee you this; we will work the file as thought it's a family member.

We will deal with the bank in a very methodical way as to ensure success. 

Your file is not something we will attempt to squeeze into our daily routine, it is our routine.

We are not learning the ins and outs of dealing with the bank on your file. We have worked closely with banking institutions in the past presenting them with all the facts as it pertains to the subject property. We have formed great relationships over the years with most banks across the United States.

As you can imagine the banks are extremely overwhelmed with the amount of foreclosures that are appearing on their books. It requires working closely with the bank, providing them with an entire package concerning the property and getting it right on the first go around.

The next step

After we receive the requested documents we normally have a decision back within forty eight hours if your property is a candidate for a short sale. Once determined that we can work with you we will meet one additional time to complete a small package of paper work to get the process rolling. Each client is assigned their own processor & negotiator that will be your point of contact.

The new exit strategy as seen in business week 

For all the homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that’s resetting higher), up to now the only option was, well, letting the bank foreclose. That’s not a good option since a foreclosure sticks on your credit record for at least 10 years. But some experts are now advocating a “short sale.” This is a case of a distinction with a difference: If your bank agrees to a short sale, you then hire an agent to find a buyer for the house, you sell the house for a loss, and with the bank’s blessing, they agree to eat the loss (although they could still demand the homeowner make some kind of payment or share the loss).

The experts say you’ll probably need to find a real estate agent willing to work for a smaller commission (which makes the bank a little more willing to absorb the loss), and you’ll also need to scale back your own spending. Putting expensive jewelry on your credit card will make a bank less inclined to do you any favors on the sale of your home. And be prepared that if your bank does absorb the loss, the IRS might treat that as taxable income and you’ll have to come up with the cash to cover the taxes. However you should avoid the foreclosure at almost any cost.

Of course, the better option is to find some way to stay in the house—by first, seeing if the lender is willing to restructure the loan, or forgo a couple of monthly payments to help you get back on your feet. Apparently, more and more lenders are willing to make accommodations to avoid taking the property back. Banks hate to take over homes, especially in a declining market, so you shouldn’t underestimate the willingness of a bank to make concessions.