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Transcription For Buyer: aliyah35
Video Name: Find Out If You Qualify For A Short Sale_.mp4
Video Link: http://youtu.be/ku0mwzX-J0U
Times: 0:00 - 8:51 (Full Video)
Transcript:
Hi there. My name is Aliyah Martinez. I am a real estate professional. I work with Re/Max
Power Pro Realty located in Davie, Florida. Today I want to talk to you a little bit about
what I do in this market today. I am a certified short sale specialist. I want to give you
some ideas or some thoughts as to what you could possibly do if you are in a financial
distress situation. Today I want to talk to you to tell you the things that you need to
have in order to qualify for a short sale. Let's go ahead and get started. The lender
pretty much… In essence, what a short sale means is that the lender is willing to take
less than what you owe on the property that you have now, the loans that you took out…
the initial loans that you took out for the property, and/or if you refinance too. So
let's say, for instance, you took out a loan for a property--I'm just going to give a generic
value here in Davie, Florida, which would be, say for instance, if you took a loan out
for a property for $250,000. You refinanced a couple years later, and now you owe $375,000.
Well, with the market value here, it pretty much has gone back to almost 50% of what the
value used to be. So say, for instance, you owe almost $400,000, your property might be
worth right now $175,000-$200,000. So what the bank is going to do is they're going to
take a short, in essence, the term "short sale," they're going to short the difference,
and that's going to be basically what the current market value is. So the bank is taking
the shortage, which is half the amount of the original loan that you took. That's why
they call it a short sale. Now it does have to be approved, and there are certain things
that I need to tell you that you need to qualify for in order to be eligible to do a short
sale. Not everyone is eligible to do a short sale. If you are still working, and you still
make the same amount of income that you made before, and you just don't want to keep the
property anymore, just because the property value has decreased substantially. You just
want out. That is not a good reason for you to try to do a short sale. You would not qualify.
You need to have some type of hardship in order for the bank to believe your story.
You need to have a letter of hardship in writing to be very specific as to what happened in
your situation. So if you are working, you still have income, you can prove your income,
the bank will ask for bank statements, they can ask for, you know, if you have any type
of 401k investments. So if you have all of those items, be careful. The bank is not going
to… They're not going to let you do a short sale in most cases. So some of the items that
you need to have in order for this to be an acceptable hardship situation, you need to
either have lost your job, you had a business that failed, and it's no longer operating,
so you lost your business. There was substantial damage done to the property. It could have
been by hurricanes, by water damage, fire damage. It could be Chinese drywall. We had
a lot of that going on in the last few years. So if you had that happen to you, that's also
how you would qualify for a short sale situation. Death of a spouse. Unfortunately, a lot of
people lose their spouses. So if you've lost your spouse or someone in your family has
died: your mother, your father, someone you were taking care of, and now you have the
unexpected expenses of a death in the family, that would qualify you as well. It needs to
be verifiable though. Or death of, I'm just repeating what I just said. Death of family
members. So, if something like that--a tragic situation happened. Severe illness. If you
have an ongoing, chronic illness that causes you to have unbelievable amount of debt, bills,
prescriptions, therapy, any of those type of situations, you will qualify for a short
sale. Inheritance. Now I haven't had this happen to me, but obviously it does happen.
If you inherit a property from a family member or something like that, and you can't afford
to maintain that property and that causes a financial distress situation on you, you
qualify. A divorce, of course. You had a joint income, and now you're down to one income,
you qualify. Mandatory job relocation. A lot of jobs, they don't quite fire you, but they
relocate to a new state or something like that, and then you find yourself in a situation
where you need to sell, you can't sell right now. Not at the current market value. So you
would need to probably try to do a short sale on your house in regards to that. Medical
bills. Also military service. If you've been deployed, you've got orders that you need
to be deployed and you own a property here that you need to sell, because you're going
to be in Iraq or you're going to be somewhere out of the country for several years, you
are eligible for a short sale. So 99.9% of what happened in this market is that most
people, they did adjustable arms and now those arms have come due. So your interest on the
payment is now triple the amount of what you have been paying for the last couple of years.
You will qualify for a short sale. That's only if you are unable to make those mortgage
payments, taking into consideration your income and everything that you have to pay monthly.
So it has to make sense. Everything has to be verifiable. The bank does ask for bank
statements, saving statements. The bank wants to know exactly what happened, so you're going
to have to put a hardship letter together to explain what happened. It has to make sense.
It can't be a situation where you still can pay your bills, you just want out of the property.
That's not going to work. Taxes increase. Insurance increased. Those things, and you
just can't pay your bills now, because of that. The taxes have just gone up too high
for you, you will qualify for a short sale. Reduced income, of course. If your job cut
back your hours… You had 40 hours and now you only have 25 hours, you don't have the
income. So you can qualify for a short sale. Separation. Not quite divorced yet, but you're
separated. That is also something to consider. And too much debt. You've got $60,000, a rough
estimate, on credit card debt that you owe that you just can't begin to start paying
back. You've got student loans, all kinds of other debt outside of your mortgage. So
just extreme debt. And the last thing that I have on my list is incarceration, so if
your spouse had to go to jail or you went to jail or… Obviously, you can't pay the
bills. You're not going to be there to pay the bills, and you've lost your job and everything
else has happened. So you definitely will qualify for a short sale. So I hope that these
items or suggestions will give you some tips on what you need to think about. I am available
to help you if you have any questions. You can feel free to e-mail me. My direct number
is 954-874-2534, and I am located and work at the entire Broward county. So if you have
a friend or yourself, you need some guidance, and you'd like to find out more information,
give me a call or shoot me an e-mail. I hope this video helps you and hopefully gets you
going on the right track again. Take care, and I hope to see you soon. Bye-bye.