All About Short Sales
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WHY a Short Sale?
What do you mean by Short Sale?
There are many ways to lose a home but giving away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale." When lenders agree to do a short sale in real estate, it means the lender is accepting less and forgiving the borrower for the difference of the total owed plus expenses.
Does the lender come after me for the short amount?
As part of our service we not only negotiate with your lender to take a lower amount as payoff, but negotiate with them to completely forgive any deficiency. In some cases, we have seen the lender ask the home owner to sign a personal loan for some of the short amount. In our contract of sale and attorney agreements you are protected. It says, "if the short sale approval from the lender is not to the sellers satisfaction, the seller can cancel this contract." So if for any reason we get the short sale approved and you do not like the terms of the approval, you can cancel the contract of sale!
How do I Qualify for This Service?
Yes, you do have to qualify for a short sale. You can not just decide one day that you do not want to pay for your house and sell it in a short sale. There has to be a reason. We call this "The Hardship." Hardships can be many different things. It can be that you lost your job, there was a death in the family, your ARM mortgage keeps increasing, and pretty much anything else that has caused you a financial hardship. When we meet with you, one of the first steps is to discuss and determine if the short sale process will be your best option.
Do I Still Pay The Commission and Closing Costs?
No! All real estate commissions, closing costs, property taxes, water and sewer bills are all paid by the lender when we settle. So in simple terms, this entire transaction costs you no out-of-pocket money. The process is easy. I sell the house, you and I go to the closing, you sign the settlement sheet and thats it! Don't bother bringing your checkbook, you will not need it.
How Much money do I Make from the Sale?
When a lender agrees to take a lower amount as payment in full, you can be assured they are not allowing you to make a dime. In a short sale approval letter from the lender, they spell out the terms and conditions of the closing, it always says "Seller to Net Zero from the Sale.
Relocation Assistance?
Yes, in some cases there is a program thru FHA that the seller can receive $750.00-$1000.00 if you qualify….
