Introducing: A Simple Guide to Short Sale and Foreclosure- PART 3

NRS -    DEFAULT AND SALE

• NRS 107.080  Trustee's power of sale: Power conferred; required notices; effect of sale; effect of failing to substantially comply with requirements of section.

• NRS 107.081  Time and place of sale; agent holding sale not to be purchaser.

• NRS 107.082  Oral postponement of sale.

• NRS 107.083  Proceedings after purchaser refuses to pay amount bid.

• NRS 107.084  Liability for removing or defacing notice of sale.

• NRS 107.085  Restrictions on trustee's power of sale concerning certain trust agreements:  Applicability; service of notice upon grantor; scheduling of date of sale; form of notice; judicial foreclosure not prohibited; "unfair lending practices" defined.

• NRS 107.090  Request for notice of default and sale: Recording and contents; mailing of notice; effect of request.

• NRS 107.095  Notice of default: Mailing to guarantor or surety of debt; effect of failure to give.

• NRS 107.100  Receiver: Appointment after filing notice of breach and election to sell.

Short Sale Flow Chart

Listing Taken / Real Estate Authorizations Obtained            

↓

Short Sale Package Requested from Lender 

↓

Initial Requirements to Lender

↓

Offer Accepted

↓

Final Requirements Sent to Seller's Lender with HUD 

↓

Seller's Lender Approval - Settlement Amount Obtained
Short Sale or Release of Lien Disclosed by Lender

↓

Docs Signed by all parties, Money Deposited 

↓

Escrow Closed with First Centennial Title

Example:

Purchase price:  $450,000
(three years ago)

80% Neg Am loan:  $360,000
Loan payoff amount at 110%:  $396,000
(maybe a prepayment penalty of $6,500.00)

Contracted Sale amount:  $380,000.00
(February1,2008)

Expenses:

• Owner's Title Policy:  $1,374.00

• ½   Escrow Fee:  $408.00

• Recording Fee:  $20.00

• Reconveyance Fee:  $90.00

• ½ Transfer Fee:  $871.25

• County Taxes:  $700.00

• Additional Costs:  $150.00

• 6% Commission:  $22,800.00

___________________________________
Total Expenses:              $26,413.25

Proceeds before Payoff:  $353,586.75

Lender is owed $396,000.00  We are asking them to short sale the
difference= $42,413.25

Short Sale they would release in total and accept $353,586.75 send title company a paid in full letter and reconveyance.

Release of lien would accept the $353,586.75 and have the Seller sign a note for $$$$$$(an unknown amount) could be as high as the actual shortage of $42,413.25

* Information provided by First Centennial Company of Nevada

Related reading:

• Why do banks take so long to approve a short sale?

• Confessions of a short sale expert

• Introducing a simple guide to short sale

• Randi Bennett talks about short sales and foreclosures