THERE IS A WAY OUT. THERE IS HELP. Tomassi Law Associates, LLC has extensive experience in the Rhode Island distressed markets including short sales and REO Properties. We help homeowners who are upside down on their mortgage find an alternative path to foreclosure or who are simply being held prisoner to a bad investment and need to get out.
Rhode Island Short Sales - Attorney Negotiated
Tomassi Law, LLC handles real estate short sales throughout the state of Rhode Island. We are unique in that we handle your short sale from start to finish. We handle the listing, marketing, negotiations and closing on your behalf. This consolidated approach allows us to handle short sales for our clients in a more efficient and effective way.
If you answer yes to any of the following questions, contact Tomassi Law, LLC today to see if a short sale is right for you?
Do you owe more on your mortgage than what the property is worth?
Do you need to sell your property but can’t sell it for enough to cover the existing mortgages and closing costs?
Are you having difficulties making your mortgage payments or are delinquent?
Are you in danger of losing your property to foreclosure?
Are you unable to refinance your mortgage(s)?
Do you need a way out of a bad real estate investment?
Find out if a short sale is right for you today. There is absolutely no cost to you to find out. We offer an in-depth free consultation and analysis of your current situation and options. We are located in Rhode Island and handle real estate transaction statewide.
In many cases, there is no fee to do a short sale and in some cases we may even be able to put money in your pocket at closing. We negotiate all of our short sales with the primary goal of getting your lender(s) to approve the short sale and to forgive you of the remaining debt.
Benefits of using Tomassi Law Associates, LLC for your short sale:
1. In many cases there is no fee to use our services and in some cases we may even be able to get you money at closing;
2. We will handle your short sale from start to finish;
3. We will list your house, find a buyer, negotiate the short sale and handle the closing;
4. Free Consultation, Options Review, Short Sale Process Explanation;
5. Effective communication – Day, Evening and Weekend availability – In-Person, Phone, Text and E-mail;
6. Our established short sale system increases the success of getting your short sale approved in a timely manner;
7. Free legal advise and guidance throughout the short sale process including in-person representation at closing in Rhode Island.
Tomassi Law Associates, LLC offers expert short sale services including short sale consultations, negotiations and closings.
From listing your home, finding a buyer, negotiating the short sale and attending the closing, you have the experience, knowledge and expertise you need along the way. Whether it is your principal residence or an investment property – if you are behind on your mortgage payments, facing foreclosure or bankruptcy, in an adjustable rate mortgage or paying a high interest rate, or simply need to sell but you are upside down on your values – then a short sale may be right for you.
Contact Tomassi Law Associates, LLC today and Attorney Jared M. Tomassi will explain the short sale process, get your house listed, find a buyer, negotiate with your lender(s) and represent you at the closing! Don’t wait – get the answers and solution you need and call Attorney Jared M. Tomassi at 401-941-LAW1 (5291), e-mail him at or book an appointment online today.
Don’t Go At It Alone!
In most cases our fee is paid out of the sale proceeds and from the banks/lenders proceeds. Even if you have a realtor, using an attorney will help your chances of obtaining and successfully closing a short sale transaction with your lender. You will have the legal representation and answers that you need that only an attorney can give you.
Benefits of a Short Sale:
1. Avoid Foreclosure
2. Minimize damage to your credit score
3. Avoid bankruptcy
4. Avoid a deficiency judgment against you
5. Lender paid closing costs
6. Possible deficiency balance waiver
7. Get out of a bad investment
8. Reset your financial position
9. Possible cash at closing
10. A strategic and moral workout solution and start getting your life back on track – Financially and Emotionally
If you are having financial difficulties and are behind on your mortgage payments a short sale may be a viable option for you. We will sit down with you and examine your current situation and present various options to you. There is no fee for this consultation.
A short sale is simply an agreement between you and your lender whereby your lender agrees to accept less than the full value of the amount owed to them on the mortgage and whereby they forgive the difference.
A short sale is highly favorable for several reasons. One, the short sale is an agreement between you and the lender whereby they forgive the difference. The lender will not pursue you for the difference between the sale price and the mortgage. This is in stark contrast to a foreclosure where a lender can pursue you for the difference between what they got at auction and what you owed them. This debt can follow you for up to 10 years.
Another benefit is that a short sale has much less of an impact on your credit score than a foreclosure and its impact does not last as long as a foreclosure on your credit score.
Tomassi Law Associates, LLC will handle your short sale from start to finish. A short sale can be a complicated and complex transaction and if not done properly could leave you subject to future liability.
We will arrange and coordinate with a real estate agent for you to list your property and to find a buyer. We will negotiate with the lender on your behalf, coordinate the documentation and represent you at the closing.
Is a short sale right for you? In most cases where you are having difficulty paying your monthly mortgage payments and the value of your house is less than what you owe on the mortgage and you are not able to refinance or obtain a modification then a short sale may be your best option.
SHORT SALE ALERT! ---------------- THERE IS A WAY OUT!
Tomassi Law Associates, LLC has extensive experience in the distressed markets including short sales and REO Properties. We help homeowners who are upside down on their mortgage find an alternative path to foreclosure or who are simply being held prisoner to a bad investment and need to get out.
SHORT SALES. What you Need to Know:
Is your house under water? You owe more on your mortgage(s) than what your house is worth.
Do you need to sell but can’t because the amount you owe is higher than current Value?
Are you having difficulty making your mortgage payments or are delinquent?
Are you facing foreclosure?
Do you need an effective way to get out of a bad investment?
Are you unable to refinance?
If you answer yes to any of the above questions, a Short Sale, may be right for you!
QUESTIONS AND ANSWERS ABOUT SHORT SALES:
What is a Short Sale?
A “Short Sale” is a negotiated agreement between a homeowner and his/her/their mortgage company whereby the lender agrees to accept less money than what it is owed on the mortgage to allow the property to be sold to an unrelated third party buyer.
How does a Short Sale work?
We utilize a time tested process to handle short sale listings to obtain the greatest and most efficient results for our clients.
We provide you with a free consultation to discuss your situation and your options, explain the short sale process and to answer all of your questions.
We arrange for our clients to have a free consultation with our wholly owned subsidiary Encompass Real Estate Group, LLC to meet with you to evaluate the property and determine the properties fair market value (likely sales price) and determine if a short sale is needed.
We will list your home on the MLS and other powerful search engines to gain maximum exposure and to locate and obtain a Buyer.
Once a Buyer is procured, Tomassi Law Associates, LLC will work with you and your lender in obtaining all of the bank required documents including tax returns, bank statements, paystubs, financial worksheets, etc… and will negotiate with your mortgage company to get the short sale approved.
We will work with the Buyer and the Buyer’s Agent and attorney, if applicable, to get the transaction to closing including inspections, appraisals, and financing and will coordinate with you, the Buyer, and the banks to close the transaction once approved by your mortgage company.
Once a short sale is approved, the Buyer will do their home inspections, appraisal and will finalize their financing.
In many aspects, a short sale transaction operates and works just like a traditional real estate transaction. The only difference is that you need approval from your mortgage company to consummate the transaction and a short sale takes a little longer. On average, a short sale will take 45 – 90 days from the time a buyer is procured.
What are the end-result possibilities with a short sale?
Once you find a buyer and submit the short sale application and package to the lender, the lender may respond with one of the following possibilities or a combination of them:
1. The lender could outright deny the short sale (very rare);
2. The lender could counter the offer submitted by the buyer;
3. The lender could approve the short sale and request a cash contribution from the seller towards the deficiency loss;
4. The lender could approve the short sale and request the seller take an unsecured promissory note for the deficiency balance or a portion of the deficiency balance payable over 20 – 30 years usually at 0% interest;
5. The lender could approve the short sale with a complete waiver of the deficiency balance;
6. The lender could approve the short sale with a complete waiver of the deficiency balance plus a cash relocation incentive to the seller of $1,500 or more.
We always negotiate short sales for our clients with a complete deficiency balance waiver as our goal. However, this is case sensitive and depends on many factors including income, credit score, debts, cash flow, personal situation, the lender involved, and many more variables.
It is important to understand all of these end-result options and to discuss your situation with an experienced short sale attorney in order to effectively evaluate your particular situation and likely end-result options.
What are the advantages of a short sale vs. letting my home go to foreclosure?
The primary advantage to doing a short sale vs. a foreclosure is that in a short sale the debt is settled and you no longer owe the bank any money. If your home goes to foreclosure, you may still be liable to the lender.
A secondary (but also important) advantage with a short sale is your credit takes much less of a hit compared to a foreclosure. The impact on your credit will vary depending on how established your credit is at the time of the short sale or foreclosure. Your credit will rebound much faster from a short sale as compared to a foreclosure or bankruptcy.
Finally, Fannie Mae & Freddie Mac revised their guidelines in August of 2008 with regard to how they view borrowers who have filed bankruptcy, gone through foreclosure or done a short sale. Through these new guidelines, they are in effect severely penalizing those who go the route of foreclosure or bankruptcy, and rewarding or encouraging those who do short sales, which they view as the borrower doing the responsible thing in light of the circumstances.
Per recent Fannie Mae / Freddie Mac guidelines, borrowers who file bankruptcy or go through foreclosure have to wait up to 7 years to buy another home.
By contrast, the new guidelines stipulate only a 24 month waiting period after a short sale, so borrowers who do a short sale can buy again in just 2 years.
What if I have a first and a second loan on my property?
Many properties today have more than one loan. For the short sale to reach a successful close of escrow, both lenders have to approve the short sale and agree to settle the debt. There is more work required with more mortgages but this is a common practice in real estate today. The 2nd mortgage is in the 2nd position behind the 1st mortgage, meaning the first mortgage gets paid first with a sale and if any proceeds remain they go to the 2nd.
However, many homes today have a value below the first mortgage. In this case the 2nd mortgage will not receive any proceeds with a foreclosure. This is one of the reasons the 2nd mortgage is motivated to reach an agreement on a short sale.
Many times the 1st Mortgage Company will pay an amount to the 2nd Mortgage Company in order for the second Mortgage company to release their lien. In other cases, the seller will pay a small nominal amount towards the 2nd Mortgage to settle it.
Are there any advantages to letting my home go to foreclosure vs. doing a short sale?
We can’t think of even one reason a foreclosure benefits the homeowner more.
The impact on your credit from a short sale will be significantly less than with a foreclosure and you will be able to buy again within 2 years, compared to up to a 7 year waiting period to buy a home after a foreclosure.
In addition, if you live in a deficiency judgment state, a foreclosure does not waive the deficiency and you can still be held liable for the difference between what you owed the bank and what they received at auction plus thousands of dollars of legal costs, late fees, penalties, advertising fees, etc…
How much does a short sale cost?
A short sale costs the homeowner nothing. The lender will pay all closing costs, escrow fees, commissions etc. The lender may also pay any outstanding property taxes as well as possibly the final water and sewer bills.
How long does it take to complete a short sale?
Each property is unique. Local real estate market conditions also play a role. The important thing is to get all of the documents together and start the process as soon as possible. On average, once we find a buyer for your property a short sale can take 45 – 90 days to complete.
So what happens to the short fall on the mortgage?
There are several options available and all depend on your income, current debt and credit score:
1. You still may be able to get the deficiency waived;
2, The lender may require you to contribute to the loss at closing by making a lump sum contribution at closing for some amount less than the full deficiency amount
3. The lender may require you to take an unsecured promissory note for the amount of the deficiency payable over 10, 20 or 30 years usually at zero percent interest. You may be able to negotiate the amount of the deficiency that you will have to pay back.
Either way you are able to get out of the house with minimal impact on your credit score and savings. If it is an investment property where you are losing money every month, doing a short sale and taking a promissory note for the deficiency for 30 years at zero percent interest will considerably help stop the bleeding on the property.
Why do banks do this?
Banks realize that many homeowners, including investment property owners, are upside down on their values. They realize that homeowners, even though they have good income, good credit and can easily pay the mortgage, can still walk away from the property forcing a foreclosure. Banks prefer to stay away from foreclosures because they are timely, costly, often done incorrectly and it is difficult and costly to pursue the homeowners for the deficiency. Banks rather approve a short sale at the fair market value of the property and have the cooperation of the homeowner in dealing with the deficiency and minimizing the loss.
If you own a property that you are unable to sell because the fair market value is less than what you owe on the mortgage contact Tomassi Law Associates, LLC for a free consultation regarding a possible short sale today. 401-941-LAW1 (5291) or . Or book a free consultation online today.