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Short Sales

What is a Short Sale?

A Short Sale is an agreement with your lender(s) to accept less money than you owe and walk away free and clear forever!

A Short Sale will avoid a foreclosure and allow you to get a fresh start. This is a Win – Win for the homeowner and the banks. Foreclosures cost the banks much greater losses than a Short Sale and allow the homeowner to purchase a new home much faster.

 

Some Benefits of A Short Sale

There are many benefits to the homeowner over a short sale. (Click here for a chart of benefits)

A Short Sale can be an excellent option for homeowner’s facing foreclosure or just wanting to get out from under the debt!

Short Selling your home is a much more dignified way to move on and start over. A short Sale is proof that you worked with your lenders to minimize their losses verses just walking away carelessly. This proven as lenders will generally not issue a home loan to anyone who has been foreclosed upon for seven years, while a short sale can be as soon as two year!

 

Common Myths of a Short Sale

1)   You must be diligent on your mortgage payments to be qualified.

Not true at all. Many lenders have come to realize that it is also in their best interest to allow a short sale and agree to accept the loss. However, for some of the government assistance program to give the homeowner to receive some case to relocate may include a minimal late payment requirement. (Make sure to call us and verify your property)

2)   The short sale is expensive.

Not true at all. All the costs associated with a short sale are either paid by your lender or the buyer through buyers credits. These costs include sales agent commission, escrow, title insurance, and many others. Most all of the time we can compel the lender pay any back or due property taxes as well.

3)   I won’t get any money to move.

Not true. In a short sale the homeowner is ONLY not allowed to receive any of the proceeds from the sale. This means you cannot receive any money from the selling of the home. However, there are funds available that are provided by the government to assist you with your or your tenant’s relocation expenses. Currently these range from $3,000-$7,500.00. There have even been some cases where up to $30,000.00 was given to the homeowner.

4)   Short Sales take 6-12 months to complete.

Not True either. Sure in some rare cases when the sale falls apart because the buyer changes their mind, this can happen. However, banks have been perfecting their short sale systems for three years now and many can be approved in 30-60 days. For some programs, we get the short sale completely approved, including the approved selling price before we list your property for sale. This streamlines the process and minimized your inconvenience.

5)   The lenders can come after me for their deficiency (loss)

Not True! Once an agreement (called a short sale approval) has been reached by each lender has been accepted by the homeowner and the sale has a successful close of escrow (No Foreclosure) than ALL DEBTS ARE FORGIVEN. It is no longer allowed under the law for a lender to attempt to collect for any losses form the short sale.