Short Sale Question and Answers
What is a Short Sale?
A Short sale happens when a homeowner owes more than the value of their property and is forced to sell their home due to some kind of financial hardship, and in turn has to seek the approval of their lender to sell their home "short" of what is owed on it. A lender in more cases then non will opt for a short sale vs a foreclosure because of the costly affects from a foreclosure.
How do you qualify for a Short Sale?
The first step is to contact us at (877)737-4903 or fill out the form below. We are a network of experienced short sale agents who offer free help to home owners in hardship. We can typically qualify you with a brief phone call. Qualifying for a short sale typically consists of having a valid hardship and the documentation to back it up. Examples of some accepted hardships may be:
- Divorce or legal separation
- Job relocation or military transfer
- Excessive medical bills or illness
- Increased living expenses
- Property in need of renovations / repairs
- Death of a family member
- Loss of employment or reduction in income
What will my lender ask me to provide before I can qualify for a Short Sale?
In order to validate your hardship, your lender will ask you to provide a hardship letter, as well as a bundle of documents to back up your hardship. Keep in mind that lenders vary on their expectations as far as proof of the hardship. Your cluster of paperwork will be made up to be called a short sale package. Examples of what you will need in this package are as followed:
- Letter of Authorization allowing us to speak to your lender
- Offer to purchase (provided through US!)
- Listing Agreement (provided by US!)
- W-2's & Tax Returns
- Financial Statements from your bank
- Hardship Letter
- BPO (Broker Price Opinion provided by us, showing current "as-is" value)
We will ask you to take care of getting these documents together for us, and the rest is up to us. Our local agents will market your home and find a buyer, just like any other sale, and then work hand in hand to get everything approved by your lender and closed. Your lender will ask us to write your loan number on literally every page, and upload it onto their system for processing. It will typically take 30-60 days for approval, and another 30-45 days to close after in is approved. Most short sales are taking 3-4 months from listing to closing right now.
How is a Short Sale beneficial to me?
Rather than a foreclosure leaving you unable to apply for any loans for up to seven years and destroy your credit, a short sale will allow you to purchase again in only two years.. It is also better to avoid a foreclosure and opt for a short sale because it will also save you from the humiliation of having your home auctioned off right in front of all of your neighbors, family and friends the way a foreclosure would. When you opt for a short sale, it will not be broadcasted across your door that you are selling your home because you can no longer afford it. In addition, in a short sale your lender will issue an approval letter agreeing to waive the deficiency and releasing you from repaying their lost money. In a foreclosure, you can he liable to repay your lender for their losses i many states. Another benefit of doing a short sale is that many lenders offer relocation incentives in order to complete a short sale. This is typically a few thousand dollars, but we have helped home owners get as much as $40,000 back at closing.
How will a Short Sale affect my credit?
The nice thing about short sales is that the only real damage your credit score will face is usually due to missed mortgage payments. After the completion on the short sale, your credit will read "paid in full" or "settled as negotiated", which sound a lot better than foreclosure. A foreclosure will put a hold on your future for almost seven years by preventing you from qualifying for any future loans, while a short sale will recover in two years.
How do I find the right Realtor to Short Sale my home?
Right here, right now. We have connected thousands of home owners like yourself with local short sale experts to offer free services! Many agents call themselves "Distressed Property Experts" after taking a weekend training class, however most lack the expertise in order to get the job done. The results of inexperience can be disasterous, and you will only have one chance at this. There is absolutely no substitute for experience, so when you are choosing your short sale specialist make sure they have a proven track record. Call us or fill out the form below to qualify for a short sale and connect with a local short sale specialist immediately in order to offer free services.
Qualify Today - 1-877-737-4903