What We Do
In order to enable over leveraged properties to be sold, Trevana Properties, LLC will negotiate with mortgage lenders and other lien holders to obtain releases. We provide liquidity to lenders, investors and homeowners by working as loss mitigation specialists for real estate agents, attorneys, homeowners, mortgage brokers and other investors. Our services also include our ability to purchase large pools of REO'S, non-performing and performing mortgages from banks and lenders being a reliable source for their balance sheet needs.Know Your Business
We know how important it is to stay up to date with changes taking place in the market as well as the short sale business. Not only do we provide a product to help you simplify and manage your short sale business but you can find the latest information about the short sale industry, new laws and tips from other successful short sale professionals. The National Association of Realtors has indicated a majority of sales in 2009 will be short sale transactions. Our experience provides the best opportunity for success for short sale management.
Why do lenders or banks take discounts or Short Sales?
A Lender or bank takes a discount or does short sales because it saves them money. It gets bad debt off their books so they can reinvest that money by giving out another loan to a customer. On average a Lender loses between $30,000 to $80,000 on each property that they take back as a bank owned property.
What is an Authorization to Release Information?
An Authorization to Release Information is an instrument that allows you to speak to a foreclosing lender or another entity on the behalf of a homeowner.
What is required on an Authorization to Release Information form?
The required information for an Authorization to Release Information form is as follows:
Lenders name, loan number, property address, homeowner or homeowners name printed and their signatures and finally the date they signed the Authorization.
Why are there so many foreclosures?
There are many answers to this question, however, one of the biggest reasons why there are so many foreclosures is because of the relaxed lending guidelines starting back in 2004. Many homeowners only had to "state" their income and did not need to verify any of it.
Can we do a short sale with every bank or lender?
The answer is no. The majority of the lenders do short sales however, there are a select few that do not do short sales.
How long does a typical short sale take?
Depending on what state you are from, this answer will vary. Call the Foreclosing Lender and ask them that question. For example in the State of Connecticut a short sale typically takes between 2 to 4 months
Can I discount a 2nd (second) mortgage or a junior lien holder?
Yes you can!
Can a homeowner receive money when a bank or lender accepts a discount?
A homeowner cannot accept money from the sale of their home if a Lender accepts a short payoff or a short sale. However, there are exceptions to this statement; for example an FHA (Federal Housing Authority) insured loan will allow a homeowner to receive $1,000.
Does a homeowner receive a 1099 if the bank or lender takes a discount?
Yes -- it is an IRS code. The IRS code states that "a reduction of debt is a taxable event." However, the Government has passed a bill stating that for a certain period of time, some homeowners may be exempt from receiving a 1099. Please consult a local tax attorney in your area for any changes or updates in reference to this bill.
When do I list a house that is in default and needs a discount?
That depends on two things:
#1 -- It depends on your exit strategy. If your exit strategy is to wholesale the property then you would not want to list the property.
#2 -- It also depends on whether the Foreclosing Lender requires the property to be listed. Please note: Some Lenders require a property to be listed when they take a short sale or short payoff.
Do I have to list a house when it is in default?
Yes and no. Some Lenders require a property to be listed when they take a short sale or short payoff. Ask the Foreclosing Lender, at the beginning of your short sale, whether you need the property listed.
Do Lenders or Banks do short sales if the homeowner is current on there mortgage?
Some Lenders will entertain taking a discount when a homeowner is current on their mortgage.
If a property is an REO or bank owned property can I do a short sale?
No. If a property is an REO, the loan has already been paid off. You can offer the same amount that you would have in the preforeclosure stage (pre REO), but it would not be a short sale at this point, just a standard transaction.
Can a home owner also be listing agent of property being short saled?
There is absolutely nothing wrong with that set up. The agent wife is not a financial beneficiary of the short sale by virtue of her commissions, therefore there is no conflict.
However, BEWARE! There is a small chance that Countrywide could take issue with it and reduce her side of the commissions accordingly.
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