Short Sales
I have a particular passion for and expertise in short sales. In my career, I have enjoyed handling the complexities in these sales and in helping people affected by them rebuild their lives. I'm happy to share some answers to common questions.
1. I am behind on my mortgage and unable to catch up, but the property is not worth what is owed. What can I do?
A short sale may be an option if you are underwater with your mortgage. Sometimes the lender will offer a seller's moving credit to help with moving expenses. You may also gain more time in the property compared to a foreclosure while you are waiting for the bank to approve the transaction. This can be helpful if you are having difficulty paying the mortgage and need more time to find the next place.
2. What is the benefit of doing a short sale vs. foreclosure?
The benefit of a short sale instead of foreclosure is it is better on your credit, gives you more time in the home, and we can work with the lender to eliminate a deficiency judgement. Foreclosure could include a judgement for the amount owed to the bank and ultimately put you into bankruptcy if not repaid. If you have a deficiency judgement, with a short sale we can work with the lender to forgive and eliminate it.
Additionally, you will qualify to buy another home again in the future sooner than having a foreclosure on your record. It is also better on your credit. This allows you to get your life can get back to normal quicker and able to obtain financing for items such as cars, furniture, appliances, etc. with better interest rates.
3. How long does approval usually take? Typical short sales take about 90-120 days. FHA loans typically take longer due to strict guidelines.
4. My auction date is less than a month away. Can I still do a short sale? Yes, but you have to act quickly and will most likely need an attorney at this point to assist you. Our team works closely with attorneys experienced in this area. It's best to make a decision to do a short sale before an auction is set. After an auction date is set it becomes more difficult.
5. What does it cost me to do a short sale? There are usually no costs to the borrowers for a short sale. All fees such as commissions, attorneys fees, taxes, and title charges are credited by the lender from the accepted purchase price.
6. I know the property is worth more than what the bank is accepting. Why are they accepting that amount? The amount the lender accepts on any short sale is based on their current BPO or appraisal and will typically accept 95% of that value.
7. I can't afford lawn care or repairs. What can I do? We will work with the lender's property preservation group to assist on any major repairs, cutting the grass, or winterizing the home in the winter months if it is vacant.
