Many homeowners are discouraged as loan modification programs have fallen short. Leaving many to believe they are stuck in a situation that they cannot get out of but there are options. One solid and sensible option is called a Short Sale.
What is a Real Estate “Short Sale”?
A short sale is the sale of a home to a buyer where the seller’s lender agrees to accept less than the full amount owed through a negotiated process. The great news is that the lender pays nearly all fees, including title, escrow, closing costs and real estate commissions as part of the short sale approval.
A Short Sale can fully satisfy a loan balance and be less damaging on an individual’s credit report than a foreclosure. Your home gets sold, your loan gets paid off and you move on with your life, regaining your financial freedom—looking toward the future.
If you are considering a Short Sale, keep in mind that in most cases, your lender would rather approve a Short Sale in an effort to avoid bigger losses through a foreclosure process. For more information contact us today, you will be glad you did.
How much will it Cost me?
There is no cost to the homeowner. By listing your home with us as a Short Sale, the lender pays for our services not you! All commissions, title/escrow fees, and maybe even unpaid taxes are negotiated to be paid out of the closing proceeds of a successful Short Sale.
Are all Short Sales requests approved?
To simply put it “no”. That is why it is critical to work with someone who has extensive knowledge in the Short Sale process. We are a highly‐trained team of professionals that work together. We have access to the decision makers at the mortgage companies.
How do I get started on a Short Sale?
It’s very simple. As home owner advocates, first, at no cost to you and absolutely no obligation, we will review your situation and options with you. We will identify your hardship and determine if a Short Sale is right for you. This starts with an initial telephone conversation. We are here to walk you through the entire process.
Are Mortgage Lenders still conducting Short Sales?
Yes! Many mortgage lenders are offering many homeowners who Short Sale, relocation incentives. Remember, qualification is strictly approved by your Lender and is not guaranteed.
In most cases, a lender would most likely prefer to approve a Short Sale than acquiring a property through foreclosure due to lender’s accelerated costs involved with the foreclosure process, including the managing and reselling of REO (Real Estate Owned) assets, all costs a lender would prefer to avoid. A successful Short Sale eliminates most of these associated costs.
What are some benefits of a Short Sale?
The Homeowner: Less damaging on your credit by preventing foreclosure. Lender pays the costs. Relieves you of the responsibility of the over‐encumbered property. The sale of your home will be handled like any other sale, diligently with care and respect. You can stay in your home until it is sold.
The Lender: In most circumstances, it is less costly than obtaining a property through the foreclosure process, reducing actual loss and costs.
The Buyer: Can obtain a property at a great price. Although, some Short Sales will be better deals than others, most Short Sales will represent a good deal for the buyer who is patient and is willing to hang in there through the Short Sale process.
I’m in the process for a loan modification, can I still Short Sale?
The answer is yes. Even if you have received a loan modification or been denied a loan modification, you can still Short Sale.
My home is Not in good condition and needs work, can I still do a Short Sale?
Yes. Short Sale properties are sold “AS IS”. If the condition of your home is below average for the current market, we will consider this when determining a list price for your property.
I received a foreclosure notice, can I still participate in a Short Sale?
Some lenders will postpone the foreclosure proceedings date in order to complete the Short Sale. Each situation is different. Important—Time is of the Essence! If you are facing foreclosure or have a set auction date, it is crucial that we contact your lender immediately and expedite your request to delay further action and commence the Short Sale process. Keep in mind that ultimately only your lender can guarantee the outcome of the Short Sale.
What kind of Hardship would my Lender consider legitimate?
Some examples of hardship that are common and often accepted by lenders include, but not limited to the following:
Loss of employment, significant income loss, decreased hours
Adjustment in Mortgage Payment/Lender terms adjustment
Unforeseen increase of living expenses and debt or circumstances that may cause financial hardship
Family illness, injury or death
Divorce or split of domestic partners
Unable to Refinance
Overwhelming Medical Bills
I’m current on my mortgage payments, will lender consider a Short Sale?
The simple answer is maybe. Some lenders will review files for approval with loans that are current, this will depend on the homeowner’s situation and circumstances. If you are facing a circumstance that makes it unlikely for you to continue to meet your mortgage obligation, please get in touch with us now. At no cost or obligation to you, we can get started on your file and we will contact your lender for their specific requirements. Remember, each situation is different.
I have more than one loan on my property, can I still do a Short Sale?
Yes, we will negotiate with your lenders.
When can I buy a home again after a Short Sale?
An individual may qualify to purchase a home with a Fannie‐Mae backed mortgage within 2 years. Keep in mind that it is important to make responsible financial decisions and to properly monitor your credit.
What is my potential liability after completing a Short Sale?
We recommend that you seek the advice of an Attorney and/or your CPA.
The process of a Short Sale takes more time than a Traditional Sale. It is important for owner/seller cooperation in the Short Sale process. Remember, while only your lender can guarantee the outcome of the Short Sale transaction, we are here to help you with the entire process. You may want to seek legal counsel for a more in‐depth perspective of your unique and particular situation.