FAQ About Short Sales

What is a short sale?
A Short Sale occurs when the homeowner gets approval from their lender to sell the home for less then what they currently owe on it. The lender forgives the current homeowner of the negative equity. The good thing about a short sale is that the bank pays for all the cost associated with the sale and you get to avoid foreclosure.

 

Will a short sale work for me?
In most cases it is in the mortgage companies best interest to work with the borrower. Whether you are enduring a hardship or your adjustable rate mortgage has just reset, the short sale is a much better option than foreclosure. In most cases a short sale works out better for both parties, you get to avoid foreclosure and the mortgage company saves a ton of fees associated with a foreclosure.

 

If I do a short sale, how much will I have to pay to sell my home?
All fees associated with a short sale are paid for by your lender. It may seem hard to believe but you do not have to spend a single dime. By allowing the short sale, the lender spends a little money now to save a tone of money later.

 

How do I get started on a short sale?
Fill out the Free Consultation form to your right. One of our certified agents will review your information and respond within 4-6 hours. If you prefer to speak to someone now, feel free to give us a call at 1-866-565-1574. There is no charge for the consultation and you are not obligated to work with us.

 

Can I short sale my property if I am not late on my mortgage?
Every situation is different and we would have to review your case. Currently The U.S. Department of Housing and Urban Development is offering incentives to lenders who allow qualified homeowners who are not behind on payments to short sale their property. Some lenders require that the borrower must be behind on payments and some don’t. Also some lenders give priority to borrowers who are behind as over the ones that are current. The only way to know if your lender will allow it is by putting together the short sale package and submitting it to them.

 

What sort of hardship would my lender consider legitimate?
The hardship letter is one of the most important parts of the short sale. It really helps convey to the lender what is causing the need for a short sale. Below is a list of common hardships that people write to their lender about.

  • Family illness or injury
  • Illness or injury in the extended family – particularly if it forces relocation
  • Job relocation when the property is equity deficient
  • Job loss or significant income loss
  • Divorce or split of domestic partners
  • Adjustment in mortgage payment or unforeseen increase in living expenses

 

Do all short sales get approved?
Lenders do not approve all short sales. It is very important you work with an agent who is experienced and knows how to successfully negotiate with banks.

 

What happens when I have two loans on my property?
Neither lender benefits from a foreclosure. The lender who holds your second trust is worst off if the property goes into foreclosure. We will submit and negotiate your short sale with both lenders.

 

Will the bank allow me to short sale my property if it is in rough shape?
Yes you can. If the buyer is willing to purchase the property as is then the lender will have no problem approving the short sale. It is in the best interest of the bank to approve a short sale in this scenario because it avoids them having to foreclose on a property that requires thousands of dollars of work.

 

How will a short sale affect my credit?
A short sale will show up on your credit report but it does not affect it as much as a foreclosure will. A foreclosure is one of the most damaging things that can happen to your credit report. By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.

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