Frequently Asked Questions

What is a Short Sale?

When a homeowner owes more on their home than it is actually worth and their mortgage company agrees to accept less than what the homeowner owes as payment-in-full to avoid the foreclosure process.

Why are banks willing to do a Short Sale?

Because the foreclosure process is more expensive than the discount the mortgage company will take on a Short Sale.

What are the benefits for the homeowner in a Short Sale?

The homeowner avoids a foreclosure on their credit record. If the loan was guaranteed by the VA, a Short Sale would protect their VA eligibility for future mortgage loans.

What is a deficiency judgment?

It is the difference between the mortgage balance and the discounted amount accepted by the bank as a result of a Short Sale. The mortgage company can pursue a deficiency judgment but the goal in a Short Sale is to negotiate with the mortgage company to accept the Short Sale amount as payment-in-full.

What are the tax ramifications to the homeowner for a Short Sale?

The difference between the mortgage balance and the discounted amount is considered to be “forgiveness of debt” by the IRS. This means the homeowner will receive a 1099 at the end of the year which they will need to report on their tax return as income.

What effect does a Short Sale have on the homeowner’s credit report?

A Short Sale is less damaging to the homeowner’s credit report than a foreclosure. The credit report will read as “Discounted payoff, Paid-in-Full”.

What closing cost will mortgage companies cover in a Short Sale?

The mortgage company, will general cover most homeowner closing cost including the real estate commission. Some of the closing costs not covered include the cost of a home warranty, HOA transfer fees and any delinquent HOA dues.

What is a Forbearance Agreement?

A Forbearance Agreement is a repayment plan. This means the mortgage company will postpone starting the foreclosure process to give the homeowner a chance to catch up on their payments. The homeowner will have to have some money saved up in order to initiate the agreement.

What does it mean for the bank to “accelerate the note”?

When a homeowner is behind in their payments and the mortgage company has made every effort to collect, they can call the entire outstanding balance due within a short period of time, usually 30 days.

What if the property is already scheduled for foreclosure?

The foreclosure period is very short in Texas, 21 days. If the home is within two weeks of the auction, the mortgage company has already sent the homeowners file to the foreclosing attorney and it is usually difficult to get the mortgage company or the attorney to work with you at that point.

How is the service you provide FREE?

We are paid through the marketing budgets of the apartment communities. We are paid for providing them with qualified prospects who will rent their units for a specified term.

What are the benefits of using a locating service?

We are licensed real estate sales professionals who specialize in apartment and home rentals. We know all the apartment communities and can find you a property that fits your needs. Whether you are interested in location, amenities or price, we can find the home that you are looking for. We will verify current rates, deposits and availability. We will work around your schedule and are available 7 days a week. Plus the service is FREE and you can even get paid for using our services.

What can I expect from your services?

An agent will ask you questions about your rental preferences (i.e., location, monthly rent, # of bedrooms, square footage, amenities, etc.). With this information we can provide a list of available apartments that meet your needs. An agent will be happy to escort you to the properties if desired. All you need to do is put Fred Flores and Co on your apartment community guest card and application form.

Is my rent affected by using a locating service?

Absolutely Not! In many instances a locator may be able to negotiate a lower monthly payment.

What if I have never rented before?

Generally, first time renters have the opportunity to have a co-signer/guarantor, or pay an additional deposit; this is dependent on the properties requirements.

What if my rental application has been denied elsewhere or I have credit problems?

In most cases, we will be able to help you. Our locators are familiar with each apartment community’s policies and procedures. Please let us know when filling out your apartment search form and normally we should be able to find what you are looking for.

What if I have a criminal background?

Depending on the nature of the crime we may be able to help you. The majority of the communities we represent check an applicant’s criminal history, so by letting us know up front, you will eliminate the frustration of being denied and loosing an application fee. If the nature of the offense is one of the following, it may be difficult to find a property to accept you: conviction involving a deadly weapon, offenses of a sexual nature or drug related charges.