The Short Sale Market
Kingdom Builders Financial Group is a nationwide Real Estate Consulting Company. We work with distressed homeowners to avoid foreclosure. We have a fantastic negotiator who has closed over 3500 short sales, and we pride ourselves on our high success rate, and getting the best possible outcome for the homeowner.
What is a Short Sale?
A short sale occurs when the amount of proceeds in a sale of property is not great enough to pay the outstanding amount of money owed on the first mortgage and any other mortgages. These lenders agree to take less than the total amount owed to them and release their lien on the property to allow the sale to proceed. When they agree to do this, they will issue a “Short Sale Approval Letter” that states the amount that they will settle for and any other terms that they may impose.
What types of property can be sold as a short sale?
Most any type of property can be sold as a short sale. Principal residence, second or vacation homes, investment property, etc. are all possibilities. There are different criteria and ways of treating the transaction for different types of property.
What are alternatives to a short sale?
Once a homeowner has exhausted their options to keep their home through loan modification, forbearance, etc., they may need to look at options to settle their ownership obligations. An alternative to a short sale would be a Deed In Lieu Of Foreclosure. This occurs when a homeowner agrees to deed his interest in the property to the lender without going through the foreclosure process. This may happen when an acceptable short sale offer is not able to be negotiated with the lender. Another alternative is foreclosure. This is when the lender seeks to obtain title to the property through legal action. If there are other financial difficulties in addition to the home and liabilities exceed income and assets, bankruptcy may be an alternative.
Why is a short sale a good option?
A short sale will cause less of a negative impact on a borrower’s credit than the other alternatives. A short sale may allow the seller to buy a new home again in as little as two years. Of course, the borrower’s payment history following the short sale will make an impact in their ability to get a new loan and on the interest rate available. A foreclosure remains on your credit report for 10 years, and you may not be able to purchase another home for 5 – 7 years. Short Sales are not reported on a credit history. It will typically be reported as “settled”, “paid as agreed,” “paid as less than agreed.” or something similar. Current or future employers running a credit check will see a foreclosure, but they will not see a short sale.Deficiency judgments may be negotiated between the homeowner and lender in a short sale, and a good negotiator is often able to negotiate NO deficiency judgment. On the other hand, banks do not negotiate deficiency judgments after a foreclosure, and you will likely have a judgment filed.A short sale allows you to stop foreclosure and get a fresh start.Although short sales and foreclosures are both much more common with the housing crisis and difficult economy, short sales also seem to have less of a social stigma.
What is a hardship?
This is simply any situation or change in your ability to pay your mortgage or to stay in your home. It may be due to a decrease in income, medical expenses, a death in the family, divorce, job relocation, neighborhood deterioration, etc. If your home is worth less than the unpaid balance due the lender, and you have a hardship that makes it difficult for you to continue to make mortgage payments, you may qualify for a short sale.
Why would the lender accept less than what is owed in a short sale?
The lender benefits enormously because they get a quick, certain acceptable alternative to foreclosure without having the expenses of the foreclosure process, carrying costs of the property (taxes, insurance, maintenance, etc.), and costs of sale when listed as a REO sale. They quickly remove a non performing asset from their books and immediately net more than they will likely get if they foreclose.
Who Benefits from a Short Sale with Kingdom Builders Financial Group?
The seller benefits from a short sale because we are looking out for their best interest, getting the short sale approved with usually NO deficiency. Your home sale will be handled like any other home sale, and you are in control of the sale, not the bank. You will be able to stay in the home until the short sale approval is received, and often upcoming sale dates are able to be postponed while the short sale process takes place. Our primary goal is to obtain the best possible outcome for our homeowners.
The buyer gets the property relatively quickly without the uncertainty of waiting for short sale approval and also gets a good value.
IMPORTANT NOTICE:
Kingdom Builders Financial Group is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Contact me for further information.
Frequently asked questions…
When was Kingdom Builders Financial started?
Kingdom Builders Financial Group was started in 2005 by Terence Smith.
What type of opportunities does Kingdom Builders have to offer?
Kingdom Builders is currently offering opportunities in our Short Sale and Commercial Divisions.
Which states do we do business in?
Kingdom Builders Financial Group does business in all 50 states of The United States of America and Canada.
What is a Short Sale?
A Short Sale is the process where the owner can sell their home for less than what is owed to their lender.
Is there a cost to our clients to do a Short Sale?
There is no cost to our clients to do a Short Sale on their home.
What are the first steps to getting a Short Sale done on a home?
The first step to getting a short sale done is for a Homeowner to fill out a Pre-qualification form provided by a Kingdom Builders Short Sale Consultant. Once that is turned in and approved, a member of our Investment team will call the homeowner to collect additional information to get the process started.
How long does it take to close a Short Sale?
A Short Sale typically takes 90-120 days to close depending on how responsive the bank is.
How many Short Sales has Kingdom Builders Financial closed?
The Investment and Negotiation Team that KBFG works with has closed over 3500 Short Sales successfully.
What types of homes will KBFG consider for a Short Sale?
The best type of home is a home that is worth $100K or more and where the homeowner is in the home and behind on their mortgage 30-120 days because of a qualified hardship.
What is considered a Hardship?
A hardship may include many different situations. The most common are a lay-off from a job, cutting of hours on a job, medical issues, divorce and death of a spouse or co-owner of the property. There may be other hardships that are not listed. When filling out a pre-qualification form, that section needs to be completed in order to be considered for a short sale.
How do I become a Consultant with KBFG?
More than likely a Kingdom Builders Consultant told you about the opportunity. Get back with that Consultant and let them know you’d like to get started with Kingdom Builders. They will send you out a contract to sign. Once you get that contract turned in, you will receive a training package and you may tune into our weekly training calls.
What are the Five Steps to Success?
Step One: Locate Clients/Recruit New Team Members
Step Two: Explain the Process of a Short Sale
Step Three: Fill out Prequalification Form Completed & Fax/E-mail to the Office Immediately!
Step Four: Don't Leave Them Where You Found Them. Offer Them the Opportunity.
Step Five: Commit to Our Training System
How do I get started on finding clients who may need a Short Sale?
Start with the first part of Step 1 in the Five Steps to Success and Make a list of 50 people or more and share what you are doing with Kingdom Builders Financial Group. Within that first group of people may be someone who needs your services or someone who you may recruit into your business. You may also receive referrals from those people in your list.
When and how do Consultants get paid?
A Consultant will get paid when a commission is paid to Kingdom Builders after the closing of the referred Short Sale or Commercial deal. Payment will be in the form of a check paid to the Consultant.
What is an override?
An override is the commission received by a Consultant on the closings of deals brought to KBFG by a Consultant(s) that was recruited by him or her.
How do I qualify for an override?
In the Short Sale Division, a Consultant starts qualifying for overrides with the first Consultant that they recruit. In the Commercial Division, a Consultant has to recruit 10 Consultants and have one personally referred deal close in order to start qualifying for overrides. (Please refer to the Commission tab for the complete Compensation plan.)
What kind of projects will KBFG consider getting funded?
The types of projects that KBFG will consider getting funded are as follows: Construction, Mobile Home Parks, Light Industrial, Car Washes, Warehouses, Marinas, Refinance, Automotive Services, Office Buildings, Mixed-Use Buildings, Restaurants, Shopping Malls, Apartment Buildings, Auto Dealerships, Funeral Homes, Raw Land Lots, Self-Storage Units, Bed & Breakfast, Hotels/Motels, Retail, Gas Stations, Assisted Living, Retail Stores, Shopping Centers, Golf Courses, Condo-hotels, Commercial Land Development, Parking Structures, Medical Facilities, Condominiums, Oil and Gas and Alternative Energy.
When do you have your Business Overview and Training Calls?
Business Overview calls for the Short Sale Division are Tuesday nights at 9 p.m. EST. Training calls for the Short Sale Division are Thursday nights at 9 p.m. EST. Business Overview/Training calls for the Commercial Division are Wednesday nights at 9 p.m. EST and Saturday mornings at 11 a.m. EST. Leadership Calls are on Monday nights at 9 p.m. EST.
What is the start-up cost to come into Kingdom Builders Financial Group?
There is no start-up cost to join KBFG.
What is a TEAM?
A team is “Together Everyone Achieves Much”. Kingdom Builders encourages everyone to create leverage by building a team and helping everyone on your team succeed by leading them by example and support.
What is a SYSTEM?
A System is “Save Yourself Time Energy and Money”. Kingdom Builders has worked hard to develop a simple system that is easy to follow so that everyone may succeed in the Short Sale and Commercial Divisions of our company.