WHAT IS A SHORT SALE? ()
A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. See also deed in lieu (or foreclosure).
Benefits of a Short sale: Win-win-win situation (**see below)
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here is how:
-The seller gets out of the mortgage liability without facing bankruptcy.
-The buyer gets the home at a reduced price.
-The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.
-While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.
IF YOU ANSWER ‘YES’ TO ANY OF THE QUESTIONS BELOW, YOU MAY QUALIFY FOR A SHORT SALE.
Are you behind on your mortgage?
Do you owe the bank more than the house is worth?
Do you have 1,2 or even 3 mortgages on your property?
Have you tried to obtain funds to bring your loan current without success?
Have comparable homes in your zip code sold for less than your mortgage balance?
Have you listed your home for sale and not received a single offer from a qualified buyer?
Is your lender refusing to accept your payments?
Are you worried about having a foreclosure on your credit report for the next 10 years?
Do you need help FAST?
Our short sale program can get you out from under that mortgage even if you owe more than the house is worth. The longer you wait, the harder it is for us to help. This is especially true for a short sale. The later in the foreclosure process you are, the less incentive your lender has to work with you. If your house payments are more than a month behind, your lender has probably already started foreclosure proceedings. As time passes, thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added! Sometimes homeowners are not even aware how far foreclosure has progressed. We talk to people every day who did not even know that their house had already been sold at auction. Don't let that tragedy happen to you! Call now to protect your assets and credit history.
How Much Does the Short Sale Cost?
Our consultation is FREE. If you decide to move forward there is a $395.00 set-up fee. If the short sale is approved we charge $1000.00. If we do not perform, we do not get paid.
How long does the process take?
Generally six to twelve weeks. There are a number of lenders who are quite backed up with short sale requests, therefore the process is taking longer than before. We will keep you updated through the entire process.
I have more than one mortgage on my property. Is that a problem?
No, in some cases it makes it easier. Subordinate lenders are more flexible than 1st mortgage holders.
What types of information does the lender require the borrower to submit?
Each lender will have different forms that we will need to complete. All lenders generally require various items such as two months of bank statements, pay stubs, past tax returns and a hardship letter.
How do I start the process?
Contact us today for a FREE consultation
Contact us
ALL fees are paid by the lender
and will appear on the HUD-1
Read about the 'Benefit of Short Sale to Seller/Homeowner'
**Seven Reasons Sellers Should Consider a Short Sale
1. Eliminate Contingencies. Distressed homeowners that need to sell a property
fast can certainly benefit from considering a short sale offer. If the short
sale offer is structured and negotiated properly there is no need to wait for the buyers to obtain financing, scheduling inspections and possible repairs and other time consuming activities while the clock is ticking away and the homeowner is struggling to make payments or facing bankruptcy.
2. Fewer Fees. In most cases, short sales result in fewer fees. Real estate
agents, brokers and others typically must show a home many times before
obtaining a valid contract but in the case of a short sale everything is
streamlined.
3. Forget Fixes. If your property isn't in tip-top condition homeowners are
normally required to spend even more money to bring the property up to par in
order to show it. Distressed homeowners may not have the necessary funds
required to make costly repairs or upgrades. Short sale properties are typically
sold "as-is" further reducing the out of pocket costs for sellers.
4. Avoid Foreclosure. Short sales may allow a distressed homeowner to avoid
foreclosure or even bankruptcy by working out an acceptable deal with the bank.
5. Preserve Confidentiality. Distressed homeowners are understandably reluctant
to have their financial status shared with peers, family and friends...a short
sale helps avoid bankruptcy, foreclosure and other embarrassing legal
proceedings.
6. Fresh Financial Start. Depending upon the individual circumstances
surrounding the short sale, the distressed homeowner may be in a better position
than ever by eliminating debt and making a fresh financial start including the
ability to qualify for a new home purchase in 2 years rather than 5 as in the
case of a foreclosure.
7. Forego Mortgage Payments. It is often possible to forego mortgage payments
while negotiating the terms of a short sale - further eliminating financial
pressure on a distressed homeowner.
Contact Us Today for FREE Consultation