What is a Short Sale?
A short sale is when you owe more on your home than what it is worth and need to sale your home. It is also called being "upside down" on your mortgage. A seller needs permission from their lender to sell their home for less than the amount owed. A seller must meet the lender's criteria for a short sale which includes financial hardship and income and asset verification. A short sale is not a "get out of my mortgage for free" card. It is a consideration for homeowners experiencing qualified hardship. You should consider refinancing or modifying your existing loan as options before you consider a short sale. There is information about these options on the home page of this website. If you know you won't be able to make your mortgage payment or you have missed making a mortgage payment and want information on preventing foreclosure by way of a short sale you should call me for a no obligation short sale consultation. It is important to work with an educated real estate agent. I cannot offer legal or tax advise. It is important that you consult with an attorney and/or tax expert to discuss any legal or tax concerns regarding a short sale.
What is the Short Sale Process?
Each lender has their own short sale process and requirements. I will assist you in meeting your lender's requirements for short sale approval. Expect to sign an authorization to release information which will allow me to speak with your lender. Be prepared to provide your lender with payroll stubs, bank statements, tax statements and other financial documentation. The bank will also require a statement that is called a hardship letter. The hardship letter is a factual statement of the conditions and circumstances that have created the need to ask for a short sale. Examples of hardship are: loss of employment or income, business failure, too much debt, separation or divorce, severe illness or medical emergency and death. Placing your property on the market does not guarantee that the bank will approve your short sale request. The bank must approve the home price and approve the terms of the sale. If you are "upside down" with more than one lender, each lender must agree to the terms of the short sale. the lender will determine whether it's in the lender's best interest to allow the short sale or to allow foreclosure. As your agent I will assist you with your particular lender's short sale process and requirements and will assist you in providing your lender with all required documentation in a timely manner.
What should you expect if the lender approves your short sale?
A seller should not expect any proceeds from the sale of their home in a short sale. All proceeds from the sell are designated by the lender. Your listing agent, the buyer's agent, or the buyer can't offer you undisclosed compensation for selling your home. All money exchanged should be disclosed to the lender. You should expect to price your home to attract buyers and satisfy the lender. You should expect to maintain the home in sale-able condition. You should expect to make your home available to potential buyers. You should expect to wait on lender responses. You should expect and make preparations to move out of the home.
What is a Certified Distressed Property Expert?
A Certified Distressed Property Expert (CDPE) is an educated real estate professional with specific understanding of the complex issues confronting the real estate industry and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPE's are able to provide solutions for homeowners facing hardships in today's market, specifically short sales.
Please review my "Avoid Foreclosure" and " Loan Modification" tabs on my home page for information that may be useful to you before you consider a short sale.