Q: My property is not listed. How do I start the Short Sale process?

A: If you want to sell your property because you can no longer afford the payments, contact me about listing your property for sale on the local Multiple Listing Service (MLS). This will allow potential buyers to know that your home is available for purchase.

Q: How long does the process take?

A: Once all required documentation is submitted a decision is typically completed within 30 days. Common reasons decisions may be delayed include low offers for your property which are under fair market value and junior liens held by other banks or individuals that also need to agree to a short sale. Depending on the type of loan, an investor and/or insurer may also need to approve the sale.

Q: How much do I have to pay to do a Short Sale?

A: Nothing. It’s true, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, and even most repair expenses are paid by the lender as part of the Short Sale approval. We will include the *following clause in the contract.

"Seller’s agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller. Seller shall not be required to deposit funds to close escrow."

Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.

Q: How will a Short Sale affect my credit:

A: A short sale will negatively affect your credit but, a short sale will protect your credit compared with a foreclosure. By performing a Short Sale, you will be able to apply for a home loan within 2-3 years. If your home is foreclosed, your credit can fall by as much as 200-300 points, and potentially be many years before you may qualify again for a home loan. 

Q: Will I be required to pay back the amount of the shortage or the deficiency balance?

A: The approval letter will specify the terms of the Short Sale approval. After a private and confidential consultation about your financial situation, I will be able to explain whether the deficiency balance will still be owed.

Q: I filed for bankruptcy. Can I still qualify for a Short Sale?

A: Yes, however consult your Bankruptcy attorney regarding the process of selling your property during a bankruptcy.

Q: For what reasons will a lendor accept a short sale?

A: 

- Family illness or injury

- Illness or injury in the extended family (particulary if it forces relocation)

- Job relocation when there is not enough equity in the property

- Job loss or significant income loss

- Divorce or split in domestic partners

- Adjustment in mortgage payment or unforeseen increase in living expenses