A: The short-answer: A situation in which a lender will except less than what is owed on the property as a payoff of the loan obligation. Long-answer: A complex process involving changing rules, strict coordination and follow through. At any time, a lender can veto a transaction for any reason, frustrating the buyer who may not have the patience to wait while the lender makes up their mind. This is not a do-it-yourself project. A Short Sale is a complicated process, but with an experienced Short Sale Agent on your side, it is a viable option and feasible.
A: No. Each lender will examine and execute terms differently. Some may grant a Short Sale, some will modify the loan, and some will proceed to foreclosure. The potential problems are immense and that is one of the main reasons that you need a specialist assisting you with this process. The good news is that over 80% of all lenders have volunteered to sign up for
HAFA (Homes Affordable Foreclosure Alternatives Program).
A: If you cannot catch up on your mortgage payments, a Short Sale, Deed-in-Lieu of foreclosure, or a Loan Modification may be options your lender will consider. If you want to stay in your home, you should look towards Loan Modification or refinance. If you decide that you do not want to stay in your home or cannot afford your home, a Short Sale may be your best option. In many cases a Short Sale is the best solution causing the least amount of damage to your credit rating.
A: It depends. If you owe more than your home is worth, more than likely your property qualifies for a Short Sale, but click here for a 5-Minute property analysis: DOES MY PROPERTY QUALIFY? Your hardship will still need to qualify. Call us for details.
A: Good news! In a Short Sale, the bank pays “ALL” seller-related costs.
A: It depends. Every situation is different and determined on its own merits. In most instances, a seller who has Short –Sale will be eligible for purchase in just two years.
A: To know exactly how your personal credit score will be affected, you will need to get professional advice from an accountant and/or credit professional. We are not licensed in the credit department. In an average case, however, a Short Sale may impact a score as little as 50 points if all other payments are being made. In the case of a foreclosure, the score can be lowered anywhere from 250 to over 300 points and can ruin your credit for 7 years.
We understand you may have many more questions that need answered or were not covered above.
