Frequently Asked Questions
A Short Sale is a win-win solution for both the home owner and the lender. The lender gets to avoid the cost of foreclosure and also gets the home sold quickly at a fair market price. For the borrower you avoid a foreclosure on your credit report and you settle your debt(s). A short sale occurs when the money owed to the lender(s) is higher than the value of the home. In order for a short sale to go through, the agent must negotiate a lower payoff with the lender(s). In the end the home is sold and any debts attached to the home are settled.
While any agent can help you with a short sale you should know that it is a very complicated process. Having an agent who already has experience working with lenders will greatly increase the chances of getting your short sale approved.
NOTHING! All commissions and costs of short sale facilitation are paid for by your lender. I will never charge you a dime for anything.
- Typically, the homeowner can continue to live in the home during the process.
- Most of the time if the homeowner has an active short sale in process the bank will postpone foreclosure while we try and work things out.
- All liens on the home most of the time are settled without any further money due from homeowner.
- In some cases, lenders will offer financial incentives to do a short sale.
- Doing a short sale is a lot of the time is less damaging to your credit.
The bank will do a broker price opinion or appraisal on the property. Each lender is different but typically they will accept somewhere close to the fair market value for the home.
Yes! Lenders are willing to do a short sale on any type of property.
The same thing. Your home will be foreclosed on. My goal for my clients is to avoid foreclosure and get their home sold and debt settled. In most cases if the short sale is successful, your credit report will show your debt as satisfied vs the much more negative foreclosure.
Once the short sale is approved the lender will typically give both the buyer and seller 30 – 45 days to close. During this time the buyer will do their dues diligence as well as get their loan approval. If we do not close on time, in some cases the lender will charge a per diem which must be paid by the buyer or agents. Once I know an approval is coming, I will let the buyer or their agent know to get started with what they need to do so there are no delays.
The commission will be 6 percent to be split between the listing agent and buyer’s agent. (If there is one) YOU WILL NOT PAY THIS COST. All commissions are covered by the lender and will come from their proceeds.
I get paid when and only when your home sells. If I am unsuccessful in getting your home sold, I get paid nothing and you will owe me nothing.
I will need 60 days of pay stubs, 2 months of bank statements, 2 years of tax returns, a hardship letter, a financial information form and third party authorization form. In the event you cannot provide any of these documents, I will need a letter stating that you cannot with a reason why.
- Separation or divorce
- Death of spouse
- Loss of job or reduced income.
- Medical bills
- Need to relocate.
- Inability to work due to health issues.
- Change in mortgage payment or increase in monthly expenses.
- Business failure.
- Other reasons that prevents someone’s ability to pay mortgage.