Q: What is a Short Sale?
A: A Short Sale is a Lender’s voluntary acceptance of less money than is owed to allow a property to be sold as an alternative to foreclosure.
Q: Why would a Lender or a Bank approve a Short Sale on my Property?
A: If the Lender believes the Short Sale offer is better for them than what they would net if they took the property back at foreclosure and sold it themselves, they will most likely approve a Short Sale. The costs of taking a property back in foreclosure are tremendous for the Lender, including accrued interest, attorney's fees, listing charges, and maintenance costs. (In other words, accepting a short sale can reduce their losses – and it helps you in the process.)
Q: How do I know if my property will qualify for a Short Sale?
A: In most cases, the homeowner needs to be behind on their mortgage, has some sort of hardship, and does not have the financial ability to solve the problem on their own. Any two or three of the previous circumstances will make a good Short Sale prospect. (We do a thorough analysis of each property and can tell you right away what options you have. Not everyone behind on payments needs to do a short sale, although, short sales are usually the best solution for most home owners that can’t solve their own financial hardship themselves.)
Q: As a homeowner, why would I opt for a Short Sale?
A: A successful Short Sale will prevent a foreclosure from appearing on your credit report. If the lender forecloses on your home, but is not able to re- sell your home for what you owed on it to recoup all of their costs, you (the homeowner) will still obligated for the difference between what they sell it for and what you owed. In addition, the Lender will tack on the arrearage, interest charges, legal fees, listing charges, and maintenance costs of the home while it is up for sale. (In pursuing a Short Sale vs. foreclosure, you will also have the satisfaction of knowing you’ve tried everything possible to fulfill your obligation to the Lender to pay off your mortgage.)
Q: What happens to my home in Short Sale?
A: A short sale cannot be done unless there is a buyer for your home (a third party who buys your property). In other words you are selling your property to the buyer and the bank is taking a loss that is better for them than if they foreclosed on you. (We have cash available and are the buyer when we do a short sale for our clients. This solves the issue.)
Q: Can I do a Short Sale Myself?
A: No. If banks and lenders allowed you to do your own short sale, then everyone would be doing a short sale.
Q: I already have an Agent, can they do the Short Sale?
A: Short Sales are an incredibly involved process. Your Agent can spend hours and hours gathering and submitting paperwork and be on the phone holding and waiting to hear from any number of committees. In order to be successful, your Agent must devote a huge amount of time and effort to create a successful short sale. Most Agents find they don’t the time to get the short sale approved. (You could be wasting valuable time if your Agent doesn’t have the tools and experience.) We love working with Agents! It’s the best of both worlds – your Agent sells the house for you and we get your short sale approved.
Q: Will my Agent be paid?
A: Yes. Your Agent will receive the same percentage that you previously agreed to, giving them every reason to help us get your short sale approved.
Q: What do I have to do?
A: We will handle everything? We will meet with you to get the information the bank needs and then submit all the documents (we know exactly what the bank wants) to process and approve the short sale.
Q: How much do you charge to do my Short Sale?
A: Nothing. When you work with us we pay for all expenses to get your short sale approved. (Caution: If someone wants money to do a short sale, a mortgage, or a fee to sell, buy or to somehow negotiate help for you situation, don’t pay them – they most likely can’t really help you and it could be a scam.)
Please Note: Although Short Sales are extremely common in this real estate market, it only makes sense to have a good understanding of how short sales work, and who can do a Short Sale efficiently. The following example will help you better understand how we really do help people out of tough situations.
We offer professional and prompt service to anyone needing help selling their home in today's sluggish market. If you need help, please don't waste precious time, call us so we can help find your best option. Keep in mind we buy homes as well as sell them.