Short Sale Information
What is a Short Sale?
Definition: A short sale occurs when a bank agrees to accept less than what is owed on a Mortgage to release its lien.
- The real property is encumbered for more than it's value.
- The property is "underwater"
- and -
- The seller does not have the assets to pay the difference between the value and the debt.
- The seller is "upside-down"
Who Qualifies for a Short Sale?
- The Mortgage is in default or default is foreseeable.
Yes, borrowers can be current on their payments depending upon their mortgage servicer or backing investor guidelines.
- The Seller has experienced a true hardship.
The "what has changed since you took out the loan that you could afford it then but can't now" test.
- Ex: unemployment, job relocation, divorce, death, illness, bankruptcy, or disability.
Even if your foreclosure is 1-2 weeks away, we work extremely hard to postpone the foreclosure to buy more time to get your short sale approved and your house sold. We work regularly with investors that are capable of making fast, cash offers on your home which enable us to work with your lender to postpone the upcoming sheriff sale date.
The Short Sale Process
Call one of our Short Sale specialists at 718-2193. They will guide you thru the process.
- Identify the best short sale option for you
- Work directly with your lenders and all lien holders to negotiate a competitive marketing price for your property
- We submit all the required short sale packages to all of the lien holders
- We handle all of the lender follow up
- We postpone pending foreclosure dates
- We coordinate your settlement with all parties
How will This Benefit You?
Did you know you can receive seller incentives from your lender of $3,000+ to sell your property via a short sale option?
- You will get regular updates of what is going on with the short sale process
- Knowing you have a short sale that is actually being processed and reviewed by your lender - working towards an approval letter
- Working with a Professional Short Sale Team - with over 5+ years of experience negotiating short sales - to guide you thru the process
- We will help to identify the best short sale option for you
Will I Owe Anything?
- We will always request for your lender to waive any deficiency rights. There are several Government Backed programs that ensure no deficiency judgment will be pursued. We will always attempt to qualify you for one of these programs first.
- A short sale option gives you the best chance to stop your property from going into foreclosure which would be a catastrophe on your credit and prevent you from buying a home for minimally 4-7 years. In most cases, your credit will be affected for about 2-3 years if you short sale your home.
- Your lender will pay for ALL of your normal closing costs, including property taxes, HOA dues, commissions, attorney fees, and transfer taxes. You will walk away from the foreclosure and get a Fresh Start.
- The IRS will issue you a 1099 for tax purposes, however in December 2007, President Bush signed into law "The Mortgage Forgiveness Debt Relief Act" which provides the discharge of indebtedness to IRS of up to $2 million of taxable income from a short sale of a homeowner's property.
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