What Is A Short Sale?

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Get Help With the Short Sale Process

 

What is a short Sale? A mortgage short sale is an option to prevent foreclosure. Here your lender agrees to sell the house to a third party for less than what you currently owe on your mortgage. Short Sales have become a much more common practice due to the recent economy. If you are struggling with your monthly payments and owe more than your home is worth, there is help with a real estate short sale.

Does It Cost Me Anything To Short Sale? What about Realtor commissions?

NO it does not cost you anything to do a real estate short sale!  Often times upside down homeowners will be hesitant to even contact a real estate agent because they don’t have the money to pay the commissions if they were to sell their house. In a short sale, the banks pays the Realtors commissions and closing costs associated with closing the sale. Lenders will also pay attorney’s fees in states where attorney representation is required. So if you’re concerned that you don’t have the money to pay the short sale real estate agents commissions and/or attorney fees, you can stop worrying.

Will I Owe My Lender Anything After A Short Sale?

As part of the short sale agreement lenders typically waive any deficiency balance allowing the homeowner to walk away free and clear.  Deficiency balances can be a few thousand dollars or several ten’s of thousands.  You want to make sure you are working with a knowledgeable short sale Realtor who will ensure you receive all the benefits a short sale has to offer.

Will My Lender Offer Any Incentives For A Short Sale?

Lenders can offer $3,000 for borrower relocation assistance if you qualify for the HAFA program.  You could actually get paid cash by the lender to short sale your home. $3,000.00 would cover moving and relocation expenses. Click here to request information for the HAFA program and find out if you qualify.

Can I Stay In My Home During A Short Sale?

Even if you are unable to make your payments you can stay in the home until the short sale is completed. This will allow you time to evaluate your next move and hopefully save some money. In return you will need to cooperate by working closely with your short sale Realtor, keep the home in good condition and allow the Realtor to show the home to potential buyers when requested.

Do I Qualify For A Real Estate Short Sale?

  • Do you owe more than your home is worth? (click here for help in determining what your home is worth)
  • Are you unable to afford your current monthly mortgage payment?
  • Do you have a hardship such as a job loss, divorce, or medical emergency?
  • Are you at least one month behind on your mortgage payments OR
  • Are you current but can show you will not be able to afford future payments?
  • Are you unable to modify your current loan?
  • Do you need to relocate for employment?

If you owe more than your home is worth and answered yes to any of the above questions you may qualify to short sale your home and avoid foreclosure.

If you are still wondering if you qualify please click here to provide us with information regarding your situation so we can better assist you in determining if you qualify.

What Is Required From Me To Short Sale?

In order for your real estate short sale to be approved by your lender, you must list your home for sale with a reputable Realtor who specializes in short sales. During the listing period, your Realtor will organize a short sale package to present to your lender(s) requesting a real estate short sale of your home. This package will paint a clear financial picture of your current situation and explain to your lender why it is in their interest to short sale. A qualified and experienced short sale Realtor will be able to assist you with your package.

Why Would My Lender Want To Short Sale?

We get asked all the time, “Why would my lender want to execute a short sale?” It is very simple, your lender can save thousands of dollars cooperating in a short sale vs foreclosing. Why? Because of all the fees, vacancy problems, taxes, and insurance that are associated with the foreclosure process. Short sales are booming because the lender can forgo all the costly expenses of a foreclosure and the homeowner can avoid a “big hit” to their FICO score with the short sale process creating a true win-win scenario.

Short Sale vs Foreclosure?

Short selling a property is easier on your credit verses a foreclosure or bankruptcy declaration.  If you are in a complex financial place or just don’t see a purpose in continuing to pay a mortgage for your home that has severely depreciated in value, you have most likely measured short sale vs foreclosure options. We absolutely hope that you realize it is in your best interest to perform a short sale when weighing short sale vs foreclosure.  Learn more…

The real estate short sale process is less traumatic than the emotional impact and social stigma of a foreclosure.

The goal of a short sale is to help you avoid foreclosure if you are no longer able to remain in your home.  In the short sale process, you sell your home and settle your mortgage debt for less than the amount that you owe.  The process of a short sale has advantages to both the lender and the borrower. For the bank, the short sale process usually results in a cost savings, as it will avoid administrative and foreclosure costs. For the borrower a short sale may enable the borrower to save their credit rating and no longer obligate them to pay anything further on the property.

More questions you may be asking yourself: