What is a real estate Short Sale?
A Short Sale occurs when a lender agrees to accept payoff of a mortgage for less than the amount they are owed. Since the payoff is “short” of what was originally owed, this type of transaction is commonly referred to as a short sale.
A short sale is a win-win solution for the property owner and the lender. The lender usually gets a higher net recovery than if they forced a seller into foreclosure and liquidated the property at public auction. The borrower benefits by not having a “foreclosure” appear on their credit report for years to come. As an additional benefit, the property owner often get relief from possible legal actions and deficiency judgments from attorneys representing the lender.
Short Sales still require payment for the many sales expenses including title fees, appraisal fees, recording fees, doc fees, legal fees, and of course brokerage commissions. So the process is neither easy nor inexpensive. However, when the right team is at work, sellers can have all of these expenses funded by the lender and the new buyer.
The end result is that your home or property is sold, the mortgage is paid off (satisfied) and you can avoid a foreclosure and/or a bankruptcy. Perhaps even better, your credit rating will usually immediately improve because your credit report shows that your mortgage was settled and the monthly loan payment obligation is no longer recorded as your liability.
What are the Benefits of a Short Sale?
When a Short Sale is achieved, there will not be a foreclosure. A Foreclosure damages credit for up to 7 years and bankruptcy up to 10 years. Many experts believe that a foreclosure is even worse than a bankruptcy; and practically all agree that a short sale is significantly better than either a bankruptcy or a foreclosure.
Protect your credit. You may not think you need it now, but in the future, that may very well change. It is important to remember that a foreclosure negatively impacts your credit for up to 7 years and federal bankruptcy damages you for up to 10 years. Experts teach that a foreclosure is much worse than a bankruptcy.
Our services is FREE to you. There are expenses involved, but these expenses are paid by the lender and the new buyer.
Controlling future costs. If your property is sold at an auction, you may owe deficiency amounts and other expenses to the lender. Under most short sales we negotiate, the homeowner will be relieved of this possible future obligation.
What is a Designated Short Sale Specialist
A Designated Short Sale Specialist® is a highly trained real estate professional who has completed a comprehensive short sale certification program, teaching them every aspect of conducting the difficult process of completing successful short sales. Remember, your bank has professional representation and so should you.
Every Designated Short Sale Specialists has invested significant time, energy and resources into their short sale education. This certification helps ensure that as a homeowner you will receive the highest level of service and get a firm understanding of the real world options available to you in today’s marketplace. Additionally, each Designated Short Sale Specialist has access to the most advanced tools and information resources available.
The realities of foreclosure can be devastating from an emotional and financial standpoint. Unfortunately, many homeowners in need of immediate help are often subjected to unprofessional, and sometimes expensive, assistance from companies and individuals who have very little knowledge of the intricacies involved in completing a successful short sale. A Designated Short Sale Specialist has both the knowledge and the tools to help you find and execute the best solution for you. And when a short sale is determined to be the best option available, you are assured that professional help will be delivered.
While real estate related financial distress is always a challenge, finding qualified assistance should not be. Choosing to work with a Designated Short Sale Specialist gives you peace of mind in knowing that you are working with a certified specialist who knows how to meet your exact needs… at the time professional help is most needed.
There is never a charge to you for service at any point in the process. For more information, contact a Designated Short Sale Specialist in your area.
Can mulit-family and investment properties be short sold?
Definitely. If you are working with an experienced team, any type of property with a mortgage can be sold using a short sale.
Can you do short sales anywhere in the country?
Yes. We have more than 1,500 Designated Short Sale Specialists throughout the United States. While we cannot guarantee that every property and every lender will be a match, most are.
What is a Hardship? What can help qualify me for a short sale?
- Less income, under-employment, or unemployment
- Divorce or separation
- Inability to work due to health or family reasons
- Medical bills for yourself or a family member
- Death of a spouse
- Business failure
- Adjustments in your monthly mortgage payment or an unforeseen increase in your monthly expenses
- Any other circumstance that negatively affects your ability to repay your mortgage.
Does It Matter Who Does a Short Sale?
Yes. Who you allow to represent you is the single most important decision you can make in regards to success. Traditional realtors only get a small percentage of their short sales approved. We are one of the largest and most successful short sale processors in the county. Our success rate is much better than that of real estate agents.
What Happens If I Don’t Do a Short Sale or my Short Sale is Unsuccessful?
The result will be foreclosure. Our mission is to make your short sale a success, because a foreclosure will affect your credit much more than a short sale. Most agree, a foreclosure is one of the most damaging occurrences in your credit history. Most likely you may have already missed some mortgage payments, and you will likely miss more during our short sale process. This will of course show on your credit history. So it is important that you are relieved of the loan obligation as quickly as possible. Then, when your short sale is completed, your credit history report will show that your mortgage has been paid. Based on that satisfied, your credit score should typically increase immediately. By all accounts, a short sale is better than a foreclosure.