Are you facing foreclosure? A short sale may be the answer!  

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What is A Short Sale?


Short Sale Definition: A short sale or “short pay” is a type of real estate sale where the lender allows a property owner to sell a property for less than what is owed on the mortgage balance. The proceeds of the sale go to the lender, and in return, the seller is able to avoid foreclosure. For example, If Jimmy Q’s current loan balance on a property is $600,000, but the property is now worth only $300,000, Jimmy might be able to short sell the property. This means that Jimmy would sell the property for market value (around $300,000), regardless of the loan balance. All of the proceeds from the sale would go to the bank. Out of these proceeds, the bank would pay realtor commissions, their portion of title/escrow fees, and any other pre-approved closing costs. For taking action (and saving the bank from a costly foreclosure) Jimmy would be rewarded with not having a foreclosure recorded on his credit. Lenders only agree to short sales if they receive a full and complete package meeting the specific guidelines of that particular lender.




How Much is This Going to Cost Me?


Unlike some companies, we charge absolutely nothing to the homeowner. In fact, MakingHomeAffordable.gov states that soliciting money for short sale negotiation and consultation services is one of the most common types of home relief scams. As reputable company, we will never ask you for money at any point in the short sale process.




Is a Short Sale Better than Foreclosure?


Foreclosing on a property will negatively effect your credit score significantly. Not only will this drastically reduce the score, but will actually state “foreclosure” on the credit report. This can prevent you from obtaining a mortgage loan, car loan, or even a credit card in the future. Even after many years, you will always be required to disclose that you had a foreclosure when applying for a mortgage loan, and other loans. This can seriously affect one's ability to obtain financing and credit in the future. It is also common for employers to deny applicants for jobs based on poor credit ratings. Finally, it is very common for the lender (or lenders) to pursue you for money after a foreclosure. There can even be additional tax consequences as well.




Can Any Real Estate Agent Handle My Short Sale?


Unfortunately, a lot of real estate agents and brokers claim to know how to complete short sales. However, short sales involve knowledge and experience of the intricate guidelines of every lender and short sale program. The fact of the matter is: 90% of real estate agents do not have the knowledge or experience to complete short sales.




Can I Short Sell if my Payments are Current?


YES




Can I Short Sell if I Missed or am Behind on My Payments?


YES




Can I Short Sell if I Already Received a Foreclosure Notice?


Yes. In most cases, the lender will stop the foreclosure process in order to complete the short sale. This is because a short sale usually saves the lender a significant amount of money and time in comparison to a foreclosure. However, we must contact the lender immediately to delay any further action and negotiate a short sale.




Can I Short Sell if I’ve Been Denied for a Loan Modification?


YES




Why Does the process Take So Long?


Over the past few years, the number of homeowners applying for short sales has exploded. In addition, lenders are overloaded with incomplete short sale packages’ and real estate agents who do not understand the process. Although Lenders are continuously increasing their staff to handle the workload, files still have to wait their turn and are handled in the order they are received. In addition, every lender and loan servicer has specific guidelines that must be met. This is why working with an expert is crucial in ensuring your file will move along and get approved. Finally, most mortgage loans are not actually owned by the lender. Usually, the lender is just a “middle man” to the actual investor that owns the loan (and pools of thousands of other loans). The servicer has to present the package to the investor, who in turn allows for an approval. We have the experience and the knowledge to ensure that everything is done as quickly as possible.




How Can I Receive Relocation Money Through a Short Sale?


When applying for a short sale, the application must include a request for relocation money / relocation assistance, for the lender to consider approving money to go to the seller.




Do I Need to File a Separate Application to Apply for Relocation Assistance?


We handle your entire process from start to finish, and will provide you with the necessary documents to complete in order to apply for relocation assistance. We ensure the application is complete and submitted to the correct department at your lender. Often times, local realtors who are inexperienced with process submit documents or files incorrectly to the lender. This can result in not qualifying for relocation assistance.





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