Are You Considering a Short Sale ?


 

What is short sale?
A short sale may allow eligible homeowners to sell their homes for less than the amount owed on the first mortgage. In a typical situation, your mortgage lenders would require you to come in with the difference in the amount owed. A real estate short sale is where we negotiate with your lenders to accept a pay-off that is less than you currently owe and you do not have to pay the difference.

 

 

Who can qualify for a short sale?
Typically, the mortgage lenders will only accept a short sale if you meet certain criteria such as: Illness,  Loss of Job,  Relocation, Reduced Income, Job Relocation, Death of Spouse or Co-Borrower, Incarceration, Divorce, Marital Separation, Military Duty, Reduced Income, and Medical Bills.

 

How much will a short sale cost me?
In short, nothing. You will never be charged for a short sale. If you complete a short sale, we negotiate our fees directly with your lender. If you do not complete a short sale, you are not charged for our consultation or guidance. Furthermore, the cost of selling your home (Escrow, Title, transfer fees and other closing costs) are paid for by your lender   

We will negotiate on your behalf to ensure zero out of pocket expenses are incurred by you.

 

How will a short sale affect my credit?
Allow us to give you the most honest answer here – it depends. It depends on how many (if any) mortgage payments you miss. It depends if you are late on other related payments (taxes, HOA, utilities, etc). The truth is, a person’s credit score takes into account MANY factors, and everyone’s situation is different. However, we can tell you we have seen credit score hits from 50 points to 150 points. Here is what “Ask Experian” says about short sales credit impact:

The term “short sell” doesn’t actually appear on a credit report. It is simply the phrase used to describe negotiating with your lender to sell the house for less than is owed on the mortgage and for the lender to then consider the mortgage closed. 

 

What are the advantages of a Short Sale vs. Foreclosure?  
Future home purchase: A homeowner who successfully closes a short sale will normally be eligible for a Fannie Mae-backed mortgage in 2 years. A homeowner who loses a home to foreclosure is ineligible for a Fannie-Mae backed mortgage for a period of normally 5 years. On any future loan application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 form that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” There is no similar declaration or question regarding a short sale. 

 

May I continue to live in my home while doing a short sale?

Yes. You don’t need to move out of your home until your short sale is fully approved and escrow is closed.

 

How does someone get started in the Short Sale Process?
Please contact us today and we will inform, educate, and guide you through the short sale process. Homeowners facing mortgage payment challenges should contact their lender or servicer to inform them of their situation.The investor, the mortgage insurer and any secondary lien holders must also approve a short sale.

 

What happens next? If the mortgage qualifies and is approved for a short sale, the lender or servicer works with the homeowners and their Realtor to determine an acceptable sales price and allowable time frame to sell the home.

 

If you would like more information about short selling your house, Please contact:

 

Randy & Diana Harris
909-856-0928

909-234-2642