Our Investors Buy Up-Side Down Properties and Negotiate with Lenders to Forgive Debt at No Cost to Homeowners!

Funding-Loans Help with a Short Sale of your Home for FREE!

What Is A Short Sale? A short sale is when the Lender or multiple lien holders agree to accept less than is owed on a property from the proceeds of a “short sale” as an alternative to foreclosure.

Cash Buyer:  Our Investors have in excess of $50 million available to purchase short sale properties.

What Is NPR Looking To Buy? Funding-Loans Short Sale buys short sale properties with values between $100,000 and $1,500,000, in excellent condition as well as properties that need minor and major repairs.  NPR is also interested in buying commercial short sale properties, such as multi-family apartment complexes.

Who Negotiates With The Lender(s)? Funding-Loans Short Sale arranges for a highly experienced negotiation company to negotiate all of our short sale purchases at NO cost to the homeowner.

What About Deficiency Judgments and Short Fall Balances? Funding-Loans Short Sale buys short sale properties after the price is approved by the Lender(s) and our negotiation team has informed NPR that the Lender(s) have agreed to forgo any short fall of the seller’s debt; also referred to as a “full satisfaction.”  If the lender will not agree to a full satisfaction, due to any number of reasons, Funding-Loans Short Sale will discuss options with the seller before closing the transaction.

Does The Short Selling Homeowner Owe Taxes on Forgiven Debt? In most cases, the homeowner will not have a tax effect from a short sale.  The homeowner can exclude canceled debt from income if it is qualified principal residence debt up to a maximum exclusion of $2 million.  Cancelled debt is not included as income to the extent that the homeowner or business owner was insolvent immediately before the cancellation.  You can elect to exclude canceled real property business indebtedness from income that meets tax code conditions.  And, there are other exclusions and exemptions.  So, in most situations there is no tax effect from a short sale.

How Does the Process Begin? The short sale journey starts, when the homeowner fills out a brief questionnaire or provides certain prequalification information to a Funding-Loans Short Sale or marketing rep and the homeowner indicates that the homeowner is ready and available to complete and sign short sale documents, including a hardship letter, personal financial information, an authorization to release information and a purchase and sale contract.

Processing Short Sale Documents: After receives the homeowner questionnaire and/or seller contact information with an understanding that the homeowner is ready to go, Funding-Loans Short Sale will contact the homeowner and provide the homeowner with an electronic file of the documents with a checklist and instructions on how to complete and return the short sale documents.  After Funding-Loans Short Sale receives the signed documents, Funding-Loans Short Sale will determine the initial purchase price, sign the documents and upload a copy to the negotiator and a copy will be sent back to the homeowner.

MLS Listing Change – “Under Contract”: If the property is currently listed, the realtor will change the listing to read “Under Contract”.

Package sent to lender(s): The senior negotiator reviews the signed short sale documents and sends the appropriate paperwork and documents to the lender(s).  The negotiator will confirm that the package of information has been received and request an immediate interior BPO/appraisal of the property.

Interior BPO: Lenders can take 30 to 60 days to schedule an Interior BPO, and it may appear that very little is happening after the documents have been signed by the homeowner; but the Interior BPO is a necessary step before an approval can be granted for a short sale.  On the scheduled date for the interior BPO, our representative will let the lender’s BPO agent in the house.  If the house is occupied, we will give the homeowner as much notice as possible.  After the Interior BPO is completed by the bank rep, a realtor will list the property for Funding-Loans Short Sale to identify the Funding-Loans Short Sale end-buyer.

Two Separate Transactions: After the negotiator has a written short sale approval, Funding-Loans Short Sale will review and satisfy any Lender stipulations, ensure that our end-buyer’s inspection and financing contingencies are removed, schedule a closing date, buy the property for cash, record title and re-sell to the Funding-Loans Short Sale end-buyer, and the closing agent will disburse payments posted on the two HUD-1 settlement statements.

Full Satisfaction: Funding-Loans Short Sale will schedule a closing when the lender has provided a short sale approval that includes a full satisfaction of the homeowner’s debt.  The Full Satisfaction is a voluntary negotiated settlement where the lender agrees to waive its right to pursue the borrower for a deficiency judgment.  If the lender will not agree to a Full Satisfaction, Funding-Loans Short Sale will attempt to reach a resolution that is acceptable to everyone involved, given the alternative of foreclosure.