Comfortable - Confidential - Custom
Custom Service Realty LLC 636-244-2735  

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Our Custom REO and Short Sale Services



 

We pride ourselves in being full time agents with vast knowledge of our market. Accessibility is the key to handling your real estate transactions. For these reasons, We have full accessibility to our clients by email, cell phones, text and fax. Our goal is 24 hour turn around for Exterior BPO's and 72 Hours or less for Interior BPO's when access to the property has granted.  We have assisted many of our clients with successful Short Sales and we would love to help you. We will work with you to initiate the Short Sale process, manage the showings of your home, handle all of the negotiations and contracts with possible buyers and assist you with everything all the way to the closing table.   
 

ASSET MANAGERS and HOME OWNERS.

 Our custom services include these and much more:

  • Assisting homeowners and Asset Managers looking to sell, or in need of a market analysis
  • Working with Asset managers looking to move recovered assets into profit-generating holdings
  • Prospective buyers needed to qualify for a home or need help finding the perfect home that fits the lifestyle and need of the buyer
  • Guidance and assistance with your real estate transactions. Our office is prepared to handle your business with skill and efficiency
  • Exterior BPO's and property inspections with digital photos in as little as 24 hours
  • Interior BPO's with digital photos in 72 hours or less when access to the property is granted
  • Additional Documentation is always available upon request
  • Short Sale Negotiation Services to assist sellers and lenders work together towards a successful sale.


What is a REO?
  - A REO is a banking industry acronym that stands for Real Estate, Owned.  This refers to property a lender has taken possession of by means of foreclosure, deed in lieu of foreclosure, voluntary action etc.... Once this has occurred, an Asset manger will assign the property to a local broker to list for sale.  It is our position to ensure the Homes are marketed under the most professional standards.  Once a property has been assigned, we will be in close communication with the lender, providing weekly reports, Bpo analysis, contractor repair oversight, and all obligations assigned to Reo listing agents.

What is a BPO? - A BPO is a Brokers Price Opinion of what a realtor/broker would suggest to be a list price for the property.  A seller’s mortgage company may order a BPO if a property is in default, so they would know what the market value of a property is in the event they have to take back a property by means of foreclosure. There are several other reasons a mortgage company may order a BPO.  Some examples: to remove mortgage insurance, to verify comparable sales, or a suggested list price for a quick sale.  It is important to understand that it is not an appraisal and shouldn’t be used as one.  The agent performing the BPO does so in order to obtain future business from the lender and to receive future listing opportunities.  All Internal Bpo's will include interior full color digital photos of all rooms, damage, repairs needed, before and after photos, comp photos, and fully detailed explanations and any requested supporting documentation for the report.

What is a Short Sale? - A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property.  It often occurs when a borrower cannot pay continue to pay their mortgage payment. However the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid a foreclosure which involves hefty fees for the bank and also poorer outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan so it is important to consult a tax professional, IRS and/or an attorney regarding possible consequences and debt forgiveness in your case. 

"Debt Forgiveness" occurs anytime you don't have to pay back a debt that you owe someone. That most commonly occurs through a foreclosure or a short sale when a lender or lenders are not paid in full. Unless the lender is pursuing a judgment for the deficiency, our IRS Code states that the amount not paid, ie: forgiven, is taxable income to the borrower.  The amount of that income is shown on the 1099 form. This gets filed with your next tax return and, unless you have an exemption, you must pay taxes on the forgiven income. Fortunately there are numerous exemptions that apply that can enable you to avoid this tax. The most common are:

 

1.    2007 Federal Debt Forgiveness Relief Act - This Act provides that there will be NO debt forgiveness tax if (1) the forgiven debt is on your personal residence; (2) the loss occurred between January 1, 2007 and December 31, 2012; and (3) any refinance monies went into the property. There are additional limitations on the amount of debt and how "personal residence" is defined. But this exemption may apply to most homeowners.  Visit www.IRS.gov for more information regarding this Act and ask a tax professional and/or attorney how it may relate to you.

 

2.  Capital Loss Offset for Investment Properties - Many people who have lost or sold an investment property suffer debt forgiveness as a result. But, unlike a personal residence, an investor may claim a "capital loss" for the difference between what they have invested in the property (capital basis) and what the sale or foreclosure price was.  To the extent that the capital loss is greater than the debt forgiveness, the loss can be offset against the forgiveness and the tax may be avoided.  Please ask a tax professional and/or an attorney if this will pertain to you.

 

3.  Insolvency - If a person lists all of their liabilities, ie: everything they owe everyone else; and under that lists the fair market value of everything they own; if the liabilities exceed the value then that person is deemed to be "insolvent". Under the tax law, there is NO debt forgiveness tax if a person is insolvent.  In this down turned economy, a great many people may fit this definition.  More importantly, the Insolvency Exclusion applies to any type of property and is not limited to a time period.  Please ask a tax professional and/or attorney if this will pertain to you.

 

4.   Bankruptcy - a person who filed Bankruptcy is deemed to be insolvent and there is NO debt forgiveness tax.  However, for this to apply, the debt forgiveness must occur in the bankruptcy or after the debt has been discharged, not before.  Please ask a tax professional and/or an attorney if this will pertain to you and your circumstances.

 

Here are some facts to know when facing foreclosure:

  • Once a foreclosure is filed, you may have 90 days to cure the default.
  • You will not be forced out of your home before the foreclosure date stated on your notice of trustees sale.
  • You can payoff or re-instate your mortgage at anytime prior to the foreclosure date; you can re-pay the back payments plus any late fees and attorney fees that may apply.
  • REO and Short Sales are at an all time high, your not alone.
  • You can verify that your home is or is not in default by contacting your mortgage company and/or the trustee (attorney) to verify the facts.
  • Delaying is a bad idea - not dealing with the situation lessens your chances of correcting the situation.
  • Be realistic with what you can afford to do, is it worth it to keep your home or save your credit?
  • Refinancing at a better interest rate is not likely when you show late payments, its usually a hard money loan. 
  • Contact a licensed professional like us – if you do nothing else, talk to a professional who has your best interest at heart. As realtors we have the obligation to be loyal, honest, and fair as well as ethical. A good agent should be able to assist you with resources regarding foreclosure, HUD guidelines, contacting your mortgage company, and evaluating your home's worth and marketability.
  • Only select a Realtor with experience - recently due to the market boom, hundreds of people have acquired their license for investment purchases- you don’t want an inexperienced agent that knocks on your door to assist you. You need experience and education on your side.

Realtors at Custom Service Realty LLC understand that your needs are important and urgent.  We look forward to working hand in hand with you to bring your property to a successful closing.  We will keep you updated and informed step by step throughout the process.  We will also make sure that you can always reach us via email, text, fax and phone.  Contact us today to see what we can do for you!

 

 

 

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