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Short Sale... A Fresh Start for You and Your Family
• Help in Avoiding Foreclosure and Bankruptcy• Save your Credit - Less Credit Damage than Foreclosure or Bankruptcy• Market your home to get the best price• Experienced negotiation with your lender• A Fresh Start• You pay nothing to us upon a successful short sale transaction. |
1. What is a Short Sale and what are the benefits?
A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the loan. Short sales vs Foreclosure allows the homeowner to get rid of their mortgage payment. Short sales buy an owner time and allow them to stay in their home for a longer period of time before being required to vacate the home after foreclosure.
2. If I do a Short Sale, how much will I have to pay to sell my home?
Nothing. In most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, and even most repair expenses are paid by the lender as part of the Short Sale approval. Lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.
3. What sort of hardship would qualify for a short sale?
Below is a list of “hardships” that are common and frequently accepted by lenders. As the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the Short Sale request will be processed by the Loss Mitigation Department.
4. I am current on my lender, will my lender consider a Short Sale?
Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent.
5. Why would my lender agree to accept a Short Sale?
The homeowner and the lender usually want to avoid foreclosure at all costs. Short Sale is a Foreclosure Solution that lenders are typically very motivated to pursue instead of a foreclosure. A short sale gives the lender the ability to cut its losses up front thereby avoiding the expense and time of a foreclosure and potentially greater losses. Lenders want to make loans; they do not want to be in the business of owning and managing real estate. Whether the lender chooses to go through with a foreclosure or agree to a short sale, they are taking a loss either way, but in many cases they would take less of a loss with a short sale and resolve the matter in a comparatively shorter time frame. In nearly every case, a short sale offers a significantly better return on the lender’s investment than a foreclosure does.
6. I have two loans, can I still do a Short Sale?
Yes. We can work with both lenders (many times the same lender hold the 1st and the 2nd loans). Even if the value of your home is below the balance of the 1st mortgage, we normally the two lenders will cooperate.
7. My property is in rough shape and needs work, can I still do a Short Sale?
Lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. A lender faces more loss when they foreclose on a property that needs lots of work. Lenders are in the loan business, not the repair business.
8. I am concerned about my credit, how will a Short Sale affect my credit report and FICO score?
If you’re like most homeowners, you’re probably most concerned about your credit rating. On average the short sale credit effect is a drop of about 200 points, much lower than the 300 to 400 typically lost on a foreclosure. Also, since you don’t have to be in default to do a short sale, the loss can be as little as 30. the main problem is that banks often require you to be a certain number of days behind, by which time the missed payments will already have considerably lowered your score.
9. How soon can I purchase my next home? Most short sale sellers plan to buy a new home soon after selling their property. A short sale appears on your credit report for around five years, but you can apply for a mortgage as early as two years after. You can get a mortgage sooner than that, but since the short sale credit report rating takes a while to recover, it’s usually best to wait and get more comfortable terms.
10. How long does a Short Sale take?
A short sale is typically approved or declined within 30-90 days from the date the offer is received.
