"I wanted to relate my experience in working with the Millennium Consulting Group. After 3 false starts, 18 months of misdirection and an ongoing malaise of so called "experts on short sales", I finally found Millennium. Alas, a group that under promised and over delivered. I obtained the short sale from the infamous nasty Bank of America on acceptable terms with "deficiency" waived!! Thank you Troy and Ken!!!"
– Mr. Hannon (Las Vegas Resident)
- What is a short sale?
- What is the cost when I want to do a short sale?
- What is the buyer fee when you close on a short sale?
- What do you go over in the consultation?
- Do I need to be delinquent on payments to Qualify for a short sale?
- Do I continue paying my HOAs?
- How do I know if I qualify for a short sale or if my loan servicer is participating in Short Sale programs?
- If you short sale my first mortgage what happens to my second mortgage?
- Is there a benefit to me as the real estate agent?
- Why should we do this? What is the advantage to my buyer?
- Does Millennium Consulting Group only work with the homeowner or will they also work with realtors to facilitate a short sale?
- Is there a specific lender that can help MCG ensure the transaction closings?
- Is your fee refundable if we can not get something approved with my bank?
- Do I need to have Legal / Attorney representation? Does that help the outcome?
- My loan is scheduled for foreclosure soon, can it be saved?
- What are the tax ramifications of foreclosure or a short sale currently?
What is a short sale?
A short sale is when a bank agrees to accept less than what is owed on the property in order to enable a homeowner who is significantly upside down on their property to sell the home as opposed to foreclosure or forcing them in to bankruptcy.
What is the cost when I want to do a short sale?
When handling short sales the sellers flat fee is $1,695 when the banks negotiated offer is accepted. If the seller does not accept the offer we have negotiated with their bank then they have the ability to back out without owing any fee at all. We are only paid based on getting agreeable terms for the seller.
What is the buyer fee when you close on a short sale?
We charge a buyer fee of of $695 or 1% of the purchase price when the transaction closes. If the purchase price is $100,000 then the buyer fee would be $1,000. This is a fee that is the buyers responsibility and will be included within the initial contract submitted to the bank(s) to start the short sale approval process.
What do you go over in the consultation?
We will answer all of your question to ensure you have clarity as to what to expect as we go through the process. We will also explain deficiency risk and tax liability so you can plan ahead and make sure you are aware of the important things a seller needs to be aware of from the start
Do I need to be delinquent on payments to qualify?
Although we have had numerous short sales close with the homeowner being current on payments most banks have policies in place that prohibit them from approving losses on these assets when payments are being made. This is why strategic default has been all over the news in recent months.
Do I continue paying my HOAs?
Continuing to pay your HOA is always recommended for a variety of reasons. We do not want to add the additional dynamic of an HOA lien to the puzzle as it could be problematic in closing a short sale.
How do I know if I qualify for a short sale or if my loan servicer is participating in Short Sale programs?
There is no real rule for qualifying for short sales as each bank and / or investor has different policies. These investors do see the benefit of working with short sales as opposed to the other more costly alternatives.
If you Short Sale my first mortgage what happens to my second mortgage?
When negotiating a short sale we need to ensure the buyer has clean title or else the transaction cannot close. We will need to address any subordinate liens on the property throughout the short sale process and get all the lien holders to agree with the sale in order to close.
Is there a benefit to me, as the real estate agent?
Yes. You will have more time to focus on your own business by generating more listings and buyer leads, while spending less time on the phone chasing the banks through the time consuming and tedious short sale process. By utilizing MCGs services, you and your client will also be improving the chances getting a successful outcome on your transaction.
Why should we do this? What is the advantage to my buyer?
The advantage is that the buyer's chances of actually closing on the short sale are greatly improved. MCG has a conversion rate of 83%, which is much higher than the industry average. On top of increasing the likelihood of getting the transaction approved, MCG has also been able to reduce the timeframe it takes to get these approvals, allowing your buyer to secure the home they want quicker.
Does Millennium Consulting Group only work with the homeowner or will they also work with realtors to facilitate a short sale?
We work with homeowners as well as numerous professional real estate agents / companies handling the short sale processing and negotiations on their behalf.
Is there a specific lender that can help MCG expedite the process of closing?
One of the biggest issues we run into with these transactions is lenders not performing on buyer's approval letters. Sometimes this is due to approvals giving limited time to close, but it is often due to the lender's lack of reviewing the buyer's situation. In order to limit this from continuously being an issue, we request that you have all buyers get a secondary loan approval from Dave Ross at WJ Bradley Mortgage Corp (702-938-7604). He has the ability to close loans quickly and has never issued an approval letter and then not performed. Either way, it is always good to get a secondary approval to fall back on if something does come up.
Do I need to have Legal / Attorney representation? Does that help the outcome?
Most states have adopted new business licenses for people who have banking experience who would be more qualified to negotiate banking issues than an Attorney. Understanding the banks internal policies is critical in working towards the best financial outcome for our clients.
Most attorneys try to scare homeowners into bankruptcy which may not be in the best interest of the homeowner.
My loan is scheduled for foreclosure soon, can it be saved?
If your home is already scheduled for a foreclosure we can still work on getting a postponement on that date in order to pursue a short sale of the property. The bank always has the right to continue with a foreclosure but as long as the seller shows they are trying to find a buyer and do a short sale most banks are willing to grant at least one postponement.
What are the tax ramifications of foreclosure or a short sale currently?
Currently if you short sale your property your bank will issue the seller a 1099 for the amount of money they lose. Prior to 2007 these 1099s would be additional taxable income and the seller would owe the IRS taxes accordingly. Currently and until January 1st 2012 the homeowner in most cases is exempt from the tax liability associated with these 1099s on owner occupied properties.
If the property is non owner occupied than you may have tax liability but you may be able to offset this with a combination of depreciation and loss on an investment. The Millennium Consulting Group is not a CPA firm and you need to contact a licensed CPA to give you definitive information about your situation.