Short Sale Information for Seller
What is a real estate short sale?
A short sale is when the lender agrees to a discounted payoff to release an existing mortgage. The short sale is valuable when the home value has fallen and cannot be sold for the amount of the mortgage owed. We work with the lender to sell the home for whatever the market will bear. If the amount of the sale is less than the amount owed, the lender proceeds and discharges the remaining debt.
Will the short sale process cost me anything?
In a short sale, the owner isn't allowed to benefit from the transaction, nor are they required to PAY anything into the transaction unless they choose to. At closing, signatures are all that's required.
When should I begin the short sale process?
Immediately! Short sale processes tend to be extremely time sensitive and lengthy to complete. The sooner we can begin the negotiations with your lender, the greater the chances of a successful resolution. There is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings against you. Time is of the essence!
What is your relationship with lenders? Why shouldn't I negotiate with my lender directly?
We work with an independent third party negotiator, whose entire business is centered on obtaining short sale approvals. Our experience and professionalism ensure homeowners and lenders we will be the driving factor for the short sale process. Just as most borrowers use a professional to initially GET a mortgage, it is in their best interest to use a professional to be RELIEVED of one. Most lenders' loss mitigation departments are understaffed, overworked and have all parties vying for their attention. If proactive, your chances are MUCH GREATER that a foreclosure can be avoided through a short sale. Let a professional help you through the short sale process.
What effect will a short sale vs. a foreclosure have on my credit?
While in both cases, short sale and foreclosure, there is a negative impact on credit ratings, foreclosure is the most severe. Many mortgage and credit experts say, with the exception of bankruptcy, having a foreclosure on your credit report can negatively impact your credit score by over 250 points. Additionally, following foreclosure, some lenders require that you wait at least 7 years to qualify for a new mortgage at a reasonable rate.
Short sales show up on credit reports in different ways, the most common is "account settled, not paid in full" and can result in a credit score reduction of 100 points or less. People who successfully complete a short sale may also qualify for a mortgage at a reasonable rate in as little as 18 months.
Why should I use the Solutions Team to help me?
We are experienced in this highly complicated process and have helped other homeowners successfully complete the short sale process so they can move forward with their lives. We have an understanding of the ins-and-outs and getting the transaction approved. This combination of industry expertise and impeccable professionalism along with extraordinary customer attention enables us to offer the highest level of service for our clients.
Call or email today for a confidential analysis regarding your options!
Darlene (512)818-1887 - darlene@solutions4relo.com
Kay (512)635-5300 - kay@solutions4relo.com
Disclaimer: This is not intended to provide legal service. We recommend that you speak to an attorney and your tax accountant regarding specifics to find out if this is the best option for you.
