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A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the loan.
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.
It’s easy. If you would like to get prequalified for a Short Sale, we can do it online.
Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit.
To some extent, that will depend upon the mortgage company considering the Short Sale request. Generally, so long as the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the Short Sale request will be processed by the Loss Mitigation Department. A big key to getting Loss Mitigation to accept a hardship is to submit a strong hardship letter. The hardship letter sets the tone for the entire file.
There are actually several reasons why a mortgage company would approve a Short Sale payoff, including the following;
Yes. We can work with both lenders (many times the same lender hold the 1st and the 2nd loans) to put together a Short Sale transaction. Even if the value of your home is below the balance of the 1st mortgage, we can normally get the two lenders to cooperate.
Absolutely. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that does not. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.
Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years. Deed-in-lieu-of-foreclosures warrant a 4 year wait with additional requirements for 4 to 7 years. Finally, the silver lining...Short Sales require only a two year wait with no additional requirements. *** In some cases selected lender can give new funding with in a year if you had no mortagage lates on your short sale.
As soon as possible. As I said before, your lender is much more willing to work with us before your house actually goes into foreclosure. But we can still short sale your house after the foreclosure while you are in the redemption period. But if you wait until you are 3 – 4 months into your redemption period, you waited too long. There will not be enough time to get the process completed.