Short Sale FAQ

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A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor.  This negotiation is all done through communication with a bank's Loss mitigation department.  

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NEED TO DO A SHORT SALE?

Basically a Short Sale works like this:
1.  We list your home for sale for a few weeks to obtain an offer.
Note: Usually the showing times are 10am to 6pm M-F only so as not to disrupt your home life.
2.  We receive an offer we feel is best based on current buyer's market suggests.
3.  I contact the bank and explain the hardship and why my client (you) are having trouble paying the mortgage.  We deal with the lender(s)
4.  Lenders realize there is a serious problem with many home owners and are deciding to sell with you, the property for less than the loan amount.
5.  You finalize your move out/relocation/renting options that best suit your needs

We organize all details and take the headache away from you.
If you are currently paying your mortgage the bank has no reason to short sale.
We know many people that were told by their lenders they would help when the home owner stopped making their loan payment to get a loan modification only to be denied the modification.
I understand this is a sensitive and somewhat emotional process but rest assured what has happened to our whole economy is far past your Personal Responsibility!

We will explore options and help to educate home owners faced with the current housing market
 
We will help answer these frequently asked questions 

The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt.  In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Most Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable.  In 99% of all cases it is not a settlement-in-full.  A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents still remain getting their profit.  And no regulatory agency governs this hybrid transaction.

Extenuating circumstances influence whether or not banks will discount a loan balance.  These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure.  Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.



For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Time Line and Process

Additionally, a short sale is typically faster and less expensive than a foreclosure.  In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.  It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

If you know of someone struggling with their house payment and can not receive a loan modification that reduces the payment and loan amount to acceptable levels, call us about doing a Short Sale.

Call and I will sit down with you to explain the process and options. 707.974.8970

All Consultations are Confidential,

REALTOR Lic # 01428827 The IRS is now working with Short Sellers - Check New Laws

* We suggest you consult a tax advisor or attorney first.