Jerry LaRose, Realtor, Short Sale Expert Orlando, Florida Real Estate Expert

Are You Looking for the Riches to be made in Foreclosures or Short Sales?

If so, here's how to do it.

This is completely new. And I'm excited.But you've got to move on this fast!

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unless they first go to their site and read their fr*ee eBook first:

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They only want to deal with serious people. I was not kidding when I said 5 to 6 figures per

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Because if you can't make a ton of cash with this system, you better check and make sure

you got a pulse. It's that simple. But you've got to show that you're committed ... the first step

in showing that you can take on a commitment is by being able to following a few simple

directions.

The first one is to go to http://www.shortsalesriches.com/cmd.php?Clk=2575390,

and pick up a their F*REE eBook. Fast.

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I mean, if you could rake in that much dough per month, I'll bet you wouldn't want to deal

with anyone who wasn't at least committed enough to download and read a no-cost eBook.

If you are a REALTOR and you're LOOKING for an INVESTOR to PURCHASE your SHORT SALES. Then give me a call. I am your INVESTOR, I will BUY your SHORT SALES. (if they meet my criteria)

So what are you waiting for? Go! Click Below on the Book!

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.

1. Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

4. What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

6. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

8. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

9. Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

10. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

11. I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

12. What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.

14. Live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.

15. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

16. Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

17. Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

18. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

19. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

20. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

21. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Whether you're trying to sell your home as a short sale or not there are ten (10) Must-Do's that will help sell your home. They are:

1. Cleaning the gutters. (if you have them)

2. Patching Nail Holes in walls, (remove the old anchors)

3. Repair Wood Rot (check for mold)

4. Fix Leaky Faucets

5. Repair Damaged floors and dinged baseboards

6. Touch-Up paint walls and trim.

7. Power Wash front entry way and/or pool deck area.

8. Water and Fertilize the Lawn (make sure your sprinkler is working properly)

9. UnClutter the House and Garage (your moving anyway-pack it away in a box)

10. Clean, Clean, Clean............Oh.....Did I say Clean!

If these 10 simple and inexpensive items are taken care of, I can assure you that your home will sell faster. If you have any questions about selling your Orlando area home please feel free to give me a call.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Q: How will the law help struggling homeowners keep their homes?

A: Through the Federal Housing Administration (FHA), an estimated

400,000 borrowers in danger of losing their homes will be able to refinance

into more affordable government-insured mortgages. The program offers

government insurance to lenders who voluntarily reduce mortgages for at-

risk homeowners to at least 90% of the property's current value.

Q: When will the program begin?

A: The program will begin on October 1, 2008 and sunset on September

30, 2011. Homeowners in danger of losing their homes before October 1,

however, should not wait to contact their loan servicers and should begin

applying for federally insured mortgages now.

Q: Who is eligible?

A: To be eligible to participate in this program, a borrower must:

• Have a loan on an owner-occupied principal residence. Investors,

speculators, or borrowers who own second homes cannot participate

in this program.

• Have a monthly mortgage payment greater than at least 31 percent of

the borrower's total monthly income, as of March 1, 2008.

• Certify that he or she has not intentionally defaulted on an existing

mortgage, and did not obtain the existing loan fraudulently.

• Not have been convicted of fraud.

Q: How can a homeowner access this new program?

A: Homeowners or a servicer of an existing eligible loan need to contact an

FHA-approved lender. The FHA-approved lender will determine the size of a

loan that a borrower can reasonably repay and that meets the requirements

of the program. If the current lender or mortgage holder agrees to write-

down the amount of the existing mortgage and make the new loan

affordable, the FHA lender will payoff the discounted existing mortgage.

Loans provided under this program must be 30-year fixed rate loans.

Q: Are lenders required to participate in this program?

A: No. The program is completely voluntary for lenders, investors, loan

servicers, and borrowers.

Q: How does this law help neighborhoods that have been hit by theforeclosure crisis?

A: The impact of the current crisis has not been isolated to individual

borrowers or investors, but has been felt broadly by neighbors,

communities, and governments across the nation. The law strengthens

neighborhoods hit hardest by the foreclosure crisis by providing $3.9 billion

in Community Development Block Grants to states and localities to buy

foreclosed homes standing empty, rehabilitate foreclosed properties, and

stabilize the housing market.

Q: Will this law be a bailout for speculators, homeowners, investors,

and lenders?

A: No. It is narrowly tailored to keep families in their homes. For example:

• Only primary residences are eligible: NO speculators, investment

properties, second or third homes will be refinanced.

• Investors and lenders must take big losses first in order even to

participate. The owner of the old mortgage can get a maximum of

90% of the current value of the home (which presumably will be

considerably less than the value of the original loan). In many cases

the loss will be significantly greater, but 10% is the minimum.

• In addition, lenders must waive any penalties or fees, and help pay

for the origination and closing costs of the new loans.

• Most homeowners will have seen the equity in their homes disappear

before being able to refinance under this program. In addition, the

FHA will get a portion of any future profits on the house, to make sure

the government recoups its investment over the long run.

Q: Will this law reward families who bought homes they could notafford?

A: Many homeowners facing foreclosure were misled, were deceived, or

were in other ways the victims of unfair lending practices. To prevent future

abuses by lenders, this law will establish a nationwide loan originator

licensing and registration system to set minimum standards for all

residential mortgage brokers and lenders. It also strengthens mortgage

disclosure requirements to help ensure that borrowers understand their

mortgage loan terms.

Q: How will this law make it more affordable to own a home?

A: There are a number of provisions that will make homeownership more

affordable:

• Creates a refundable tax credit for first-time homebuyers that works

like an interest-free loan of up to $7,500 (to be paid back over 15

years) .

• Grants states $11 billion of additional tax-exempt bond authority in

2008 that they can use to refinance subprime loans, make loans to

first-time homebuyers and to finance the building of affordable rental

housing.

• Raises conforming loan limits for the FHA, Fannie Mae and Freddie

Mac to $625,500. Because of the high cost of housing in California, a

majority of the state IS residents were previously shut out from these

programs. Raising these loan limits will lead to lower interest rates on

some loans, greater refinancing opportunities, and enable more

borrowers in high cost areas to avoid the type of nontraditional and

frequently abusive loans that led to the current crisis.

• Provides couples using the standard deduction with up to an

additional $1,000 deduction for property taxes ($500 for individuals).

Q: Does the law provide help to those who still cannot afford to own a

home?

A: Yes. The bill includes a number of provisions to increase the supply of

affordable housing, which has been a major problem in California pre-

dating the current foreclosure crisis. For example:

• The bill creates a new permanent affordable housing trust fund -

financed by Fannie Mae and Freddie Mac and not by taxpayers - to

fund the construction, maintenance and preservation of affordable

rental housing for low and very low-income individuals and families

nationwide in both rural and urban areas.

• In addition, the legislation provides a temporary increase in the Low-

Income Housing Tax Credit and simplification of the credit to help put

builders to work to create new options for families seeking affordable

housing alternatives.

Fact Sheet:

The President has signed into law legislation that will allow HUD's Federal

Housing Administration (FHA) to continue providing targeted mortgage

assistance to homeowners. The Hope for Homeowners program will

continue FHA's existing and successful efforts to provide aid to struggling

families trapped in mortgages they currently cannot afford. Under the

program, certain borrowers facing difficulty with their mortgage will be

eligible to refinance into FHA-insured mortgages they can afford. The

program will be implemented on October 1, 2008.

Homeowners May Already Be Eligible For Assistance

Families should not wait to seek mortgage relief. Right now, homeowners

can determine if they are already eligible for mortgage assistance through

FHASecure, FHA's existing refinancing program. They can obtain

information through any of the following options:

1. Contact a local, HUD-approved housing counseling agency at

www.HUD.gov;

2. Contact the HOPE NOW Alliance at (888) 995-HOPE; or

3. Call FHA at (800) CALL-FHA.

Sustainable. Affordability Homeownership

Hope for Homeowners maintains FHA's long-standing requirement that

new loans be based on a family's long-term ability to repay the mortgage.

FHA only allows owner-occupants to be eligible for FHA-insured

mortgages. Borrowers must also meet the following eligibility criteria:

• Their mortgage must have originated on or before January 1, 2008;
• Their mortgage debt-to-income must be at least 31 percent;
• They cannot afford their current loan;
• They did not intentionally miss mortgage payments; and
• They do not own second homes.

Features of FHA-insured loans under the new program include:

• 30-year, fixed rate mortgage;
• Maximum 90 percent loan-to-value ratio;
• No prepayment penalties;
• $550,440 maximum mortgage amount;
• Extinguishment of any subordinate liens; and
• New home appraisals from FHA-approved appraisers.

HUD, Treasury, FDIC and the Federal Reserve will form the

Congressionally-mandated Board of Directors and work together to

establish additional program standards.

Voluntary Lender Participation

FHA will continue to offer lenders an alternative to foreclosing on

borrowers. Similar to FHASecure's recent expansion, lenders will be

encouraged to write-down the outstanding mortgage principal balances to

90 percent of the new value of the property. In many cases, reductions in

principle will cost lenders less than the losses associated with foreclosure.

Market Stability and Liquidity

By continuing to slow the rate of foreclosures, this program will support

FHA's existing effort to stabilize local housing markets. From September

2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage

capital.

Funding .

FHA will insure up to $300 billion in new loans. Borrowers will pay an

upfront premium of 3 percent of the original mortgage amount and an

annual premium of 1.5 percent of the outstanding mortgage amount. Any

additional costs incurred by FHA will be reimbursed by Fannie Mae and

Freddie Mac.

Program Timeline

The program will last from October 1, 2008 through September 30, 2011.

Since September 2007, FHASecure has helped more than 290,000 families

obtain safer, more affordable mortgages. FHASecure is on pace to help

500,000 families by the end of the year.

What is a Short Sale?

A short sale is when the lender will accept less than the full amount due on a mortgage when a property is sold. Usually, the lender will accept the short sale to avoid the time and expense of a foreclosure. Financially the lender is actually ahead after a short sale.

What is a Foreclosure?

In simple terms: The homeowner has not been making the mortgage payments, and it is the action the financial institution can use to take the house back. The homeowner borrowed money using the house as collateral with the agreement that if they could not pay it back, then the lender could take the house.

What is a Forbearance Agreement?

A forbearance agreement is a written agreement with your mortgage company in which you arrange to keep your home. The agreement will normally include two primary elements:

The borrower's promise to remain current on the mortgage going forward.

Some plan for making up the delinquent interest and other charges. It may mean additional payments to the mortgage company or the delinquent amount could be added to the loan to be paid later.

What is involved to do a Short Sale?

In order to start negotiating the Short Sale the lender will usually require the homeowner to submit verification that they are qualified in order to consider the short sale. The information required and documentation necessary is provided as well as training on the entire process.

Will the bank come after the homeowner for the difference?

I will always negotiate with lenders to "Not seek a deficiency judgment" against the homeowner.

Is the seller going to get hit with a tax bill or a 1099 if you do a short sale?

Upon successfully closing a short sale, lenders will always report a loss to the IRS and issue a 1099. However, the Mortgage Forgiveness Act of 2007 was signed into law on 12-20-07 and is now official, effectively getting rid of the question "will I be taxed on the Short Sale". Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was potentially taxable income to the borrower.

This was the subject of much media attention and led to many questions and concerns from Sellers wondering whether or not they were going to get "hit with taxes" on the Short Sale.
The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009.
This will effectively put an end to the question from Sellers... will I be taxed on the Short Sale discount. The definitive answer (at least until the end of 2009) is NO!

For a copy of the Mortgage Forgiveness Debt Relief Act of 2007, go to:
http://www.govtrack.us/congress/bill.xpd?bill=h110-3648 or http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html

The bottom line here is that only Acquisition funding can be forgiven by the Mortgage Forgiveness Debt Relief Act of 2007.

Foreclosure, Deed in Lieu and Short Sales are all treated the same in regards to taxes.

Any cancellation of debt is a taxable event except for any acquisition funding for your primary residence that you've lived in for the last 2 years. Everything else is taxable. However, please see you tax advisor if you have a second home or investment property that you are considering a short sale on. You accountant may advise you that you may have a loss on this investment property that would offset any gain. Please seek advise from your tax advisor.

Will the homeowners credit be affected?

If the homeowner has to short sale their home they've most likely missed payments already. That in itself has already adversely affected their credit. The key here is to stop the devastating affect on your credit that a Foreclosure causes. A Foreclosure is the most damaging record on your credit report - its even worse than bankruptcy.

By working with Jerry LaRose you give yourself a fighting chance of avoiding foreclosure and start towards the "Rebuilding" process. With our help, your credit will recover quickly if you keep your other lines of credit in good standing. With Jerry LaRose you have an experienced team of professionals that will help you through these tough times.

Is a Short Sale right for me and my situation?

Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship, and are unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure.
As you consider the option of pursuing a short sale, remember your lender is looking to limit any potential loss on your loan. By completing a short sale, your lender has arrived at a solution that is, for them, much better than a costly foreclosure.

What sort of hardship would my lender consider legitimate?

To some extent, that will depend upon the mortgage company considering the short sale request. Generally, as long as the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the short sale request will be processed by the Loss Mitigation Department. A big key to getting Loss Mitigation to accept a hardship is to submit a strong hardship letter. The hardship letter sets the tone for the entire file.

Will the lender approve a Short Sale even if the homeowner is current on their mortgage?

Yes we have successfully negotiated and received an approval on a short sale even when the homeowner was current on their payments.

Why would a mortgage company agree to accept a short sale?

There are actually several reasons why a mortgage company would approve a short sale payoff, including the following:

• Legal Concerns: Mortgage lenders have come under legal pressure to work with borrowers to equitably resolve situations where borrowers are unable to meet their mortgage obligation, particularly when the borrower makes an effort to arrive at a compromise solution.

• Wall Street is Watching Mortgage lenders rely heavily on their ability to package and sell bundles of loans on the secondary mortgage market. They need to sell these bundles of loans in order to put the funds back to work by loaning the money again and collect loan fees along the way. If mortgages perform poorly after they are sold it could impact the lender's ability to sell their loans on the secondary market. A successful short sale gets the loan payoff resolved quickly.

• Asset Management Expenses- If a lender acquires a property through foreclosure, the property will be managed until it is repaired and resold. It is expensive to manage real property assets - homes - spread throughout the region, the state and possibly even the nation. Keeping properties maintained, keeping utilities on, making repairs and the administrative costs attached to these activities are all costs the lender would prefer to avoid. A successful short sale eliminates most of these costs.

• Reserve Requirement- Delinquent and non-performing loans place another burden on mortgage lenders. For all delinquent and non-performing loans lenders must set aside funds in reserve to deal with potential losses. These funds cannot be put to work generating new loan fees until the bad loans are resolved. A successful short sale lets the lender put their money back to work.

Can I still short sale my home even if I have 2 loans?

Yes, it doesn't matter how much you owe. The lender will evaluate what the current market value is and then decide how much they will accept.

Can I still do a short sale even if the property is in very bad condition?

Yes. Lenders are more motivated to do a short sale on a property that needs work than on a property that doesn't. Lenders know losses start to skyrocket when they foreclose on a property that needs a lot of repair work. Lenders are in the business of lending money not property management and home repairs.

If I am behind in my payments and can't afford closing costs what can I do?

Lenders are understanding when it comes to this situation and will actually pay the REALTORS® commission and your closing costs.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales