Frequently Asked Questions about Short Sales

What is a short sale?  A "Short Sale" is when the lenders agrees to accept less than the full amount owed on a mortgage. Often times there are 2 different lenders. When 2 lenders are involved, approval is needed from both to complete a short sale.

What is involved in doing a short sale? A short sale is very similar to a regular home sale. The main difference is that once there is an accepted offer between buyer and seller, the bank will then need to accept it to complete the sale.

Will the bank come after me for the difference? While negotiating with your lender, we ask that they DO NOT seek a deficiency judgement against you. You will have 7 days to decide if you would like to complete the sale based upon the lender's response.

Will there be tax consequences? While every property is different. We can help you in determining whether the lender has the right to give you a 1099-C for the deficiency.

How will my credit be affected? This is one of the most commonly asked questions. There is not an exact formula to determine the impact to your credit score. Although there is no standard deduction in credit score, it WILL adversely affect your credit score. However, it does not affect your credit score as bad as a foreclosure will. We ask all lenders to report your loan to the credit bureau as "Paid as Agreed".

Do I have to be late on my mortgage to be eligible? NO! Lenders are increasingly willing to work with borrowers who NEED to sell their home due to unforseen circumstances. We have succesfully negotiated several short sales where the seller was current on their mortgage.

Can I do a Short Sale if I have 2 loans? YES! Almost 80% of our sellers have 2 loans on their properties. We work with both lenders to come to an agreement which satisfies both of their requirements.

Do I have to pay a real estate commission? NO! The lender pay's 100% of our fee. We understand that you are in a tough financial situation and we do not request any payment form our sellers.