:: short sales

Not all lenders are willing to accept less than what is owed in a short sale, but they will assess whether there is a hardship situation that would require the homeowners to need a short sale to avoid foreclosure. The lender will also ascertain if their loss will be lessened by accepting a short sale rather than taking the property back in a foreclosure.

There have been government initiated programs through HAFA (Home Affordable Foreclosure Alternatives) that have been set up to encourage the banks to help homeowners with short sales.

The Cost

Since there is insufficient equity in a short sale to pay off the mortgage, the banks generally agree to cover all the normal closing costs like realtor commissions, taxes, attorney costs, and fees. In order for the bank to agree to the short sale, they will want to know that there is some kind of hardship that is necessitating their taking a loss on the mortgage. If they ascertain that the bank will take less of a loss through a short sale than a foreclosure, then they can approve the short sale and all the accompanying fees and commissions.

Occasionally the banks might request a seller contribution or a promissory note if they feel the homeowner can afford it. Although this is the exception rather than the rule, it is more likely to occur (if it does) when dealing with mortgage insurance or home equity loans. More likely than not, if you are dealing with experienced short sale negotiators, they will be able to get the banks to cover all the expenses associated with a short sale.

Time Frame

Because the banks are so overwhelmed with foreclosures and short sales, after they get all the necessary paperwork, it generally takes at least 3 – 4 months before they can approve a short sale. Sometimes if there is more than one lender involved or if there is mortgage insurance, it can take longer than that because of the additional approvals required.

During the process the homeowner can continue to live in the property while making plans towards finding a place to move. This takes away some of the additional stress of being foreclosed on and having the banks remove you from the property before you have a place to move. It also can give you a little breathing space to save up the necessary rental deposits.

What Impact will a Short Sale Have on My Credit Score?

People are rightly concerned about the impact of a short sale on their credit score because it does impact it. But the real question should be, “Which of my available options will be less damaging to my credit score?”

There is no specific way to report a short sale on your credit. It is up to the mortgage company to determine what they will report to the credit agencies. The majority of them report something like “Paid for less than what was owed”, but some of them actually report them as “Paid in Full”. For those, there is no credit impact. Because a short sale is not an actual item on your credit report, it usually will not affect your present or future employment.

It is good to consider which options will benefit you most and have the least impact on your credit score. Before making a decision that could cost you financially for many, many years, make sure you get expert advice to help you analyze the best decision for you and your family.

Click Here for Your Full Report: The Impact of a Short Sale on My Credit

What is Our Short Sale Success Rate?

We’re glad you are interested in our success rate, because you ought to be! Right now everybody in real estate is trying to do short sales – and everybody will tell you they can do them. The vast majority of realtors do not really have the expertise to effectively negotiate with the banks and work out all the necessary details. Most real estate agencies outsource their short sales because they lack the knowledge and skills to successfully make them happen.

We don’t outsource our short sales. We handle each one in-house so that we give our clients the individualized, personal attention that they need. We have negotiated hundreds of short sales and have experience dealing with all the major lenders and most of the smaller ones as well. Our company daily gives out a wealth of shortsale information.

The industry standard is that only 33% of attempted short sales are actually completed successfully. That is why we are proud to say that we successfully complete 93% of ours! We can’t guarantee you that we will get it done, but we can guarantee you that you will get a competent negotiator who will work to get you the very best deal that can be had. We will work with YOUR best interest in mind.

If you are considering getting some shortsale help, it doesn’t cost you any more to deal with the best – and it could cost you A LOT to deal with less than the best! To find out how we can help you and to get a free consultation, fill out the form below.