Short Sale FAQ’s

You have probably heard the term “short sale” and may not know what it involves or how you can benefit from it. When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due on the mortgage when the house is sold. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales. Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

The bank requires that a complete financial package be submitted by the seller to their short sale department for review. Each bank has its own guidelines, its own forms, and its own short sale process. Dealing with the bank and all the paperwork can be overwhelming. When you are already in a desperate situation, you want a short sale specialist on your side to negotiate on your behalf. We can assist you through the complex short sale process including working to obtain the lender’s approval and holding onto the buyer during the process.

We will thoroughly answer your questions, such as:

  • Do I qualify for a short sale?
  • How will a short sale affect my credit?
  • What if I have more than one mortgage? Or an equity line in addition to my mortgage?
  • How does the bank determine what my home is worth?
  • How long will the process take?
  • Should I pay my mortgage/property taxes/HOA fees while I wait for approval?
  • Will the bank come after me for the remainder of the loan amount?
  • What is the Mortgage Forgiveness Debt Relief Act of 2007 and does it apply to me?

We can help you with:

  • Listing your home on the market and following short sale disclosure requirements
  • Working with potential buyers to explain the short sale process and keep them interested while we wait for approval from the bank
  • Assembling the short sale package for submission to the lender, including writing the hardship letter
  • Consistently following up with the lender to track status
  • Negotiating with the bank on your behalf to accept the buyer’s offer
  • Following through with both buyer and seller through closing.
  • If you are already working with a Realtor, we can partner with them to do the short sale negotiation with the bank to assure that your short sale is approved

We have also successfully helped qualified clients obtain up to $3,000 towards relocation costs as part of the HAFA program.

Please contact us for a free short sale consultation.

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Dealing with the bank and all the paperwork can be overwhelming. When you are already in a desperate situation, you want a short sale specialist on your side to negotiate on your behalf. We are certified by the California Association of Realtors as Short Sale and Foreclosure Specialists!