What is a Short Sale?

What is a Short Sale?



What is a short sale?

A short sale is when a negotiation is entered into with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing.  A buyer closes on the property and the property is then “sold short”.

How Does it Benefit Me to do a Short Sale?  Here are just a few reasons…

1.)  Having your property sold through the short sale process does not affect your credit as much as a foreclosure could. Credit scores could possibly be lowered by only 50 - 100 points, if all other payments are made. 

2.) The homeowner will be eligible for a Fannie Mae backed mortgage only 2 years after short sale.  That’s 3 years sooner than foreclosure!

3.) Short sales are not reported on the homeowner’s credit history because the debt is typically reported as paid or negotiated; therefore does not affect current or future employment or security clearances like a foreclosure could.

4.) In some successful short sales, it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.

Do I Qualify to Sell My Property Through The Short Sale Process?

In order to qualify for a short sale, the homeowner must demonstrate a financial hardship.  Some examples are; loss of job, death of a spouse, severe illness, divorce, medical bills, reduced income, payment increase or mortgage adjustment.  

What Can You Do To Help Me?

Our specialists will explore every option for you in order to help you avoid foreclosure.  If you qualify for a short sale, they will be able to guide you through the process.  We speak directly with your lender, negotiate the sale of your home to get the best possible price, and MOST OF ALL save you and your family from the devastation of foreclosure.

TIPS to do right now…

1.) DO NOT avoid mailings or delivered notices from your lender!  This can make negotiating a short sale more difficult.  For example, you would not be aware of your property going into a bank sale and most likely it will be too late to negotiate a deal with your bank/lender.

2.) Time is of the essence!  Call our specialists who have the knowledge and expertise in short sales.  If you have missed any mortgage payments or believe that you have had a financial hardship.  Don’t wait!  Call us today!

3.) Communicate with your bank.  Tell them that you have or will be missing your mortgage payments and want to work something out.  They will be able to tell you if you are eligible for a loan modification, forbearance or re-payment plan, or even refinance.