Short Sale FAQ's

 "Short Sale” is becoming a commonly heard term in Real Estate today.  If you are in a serious financial pinch with your home, you may want to read the FAQ’s below to help you weigh your options before time runs out.  Selling your home in a Short Sale is better than going into Foreclosure and seeing your home end up on the Courthouse Steps in an auction. We are here to help you and have the experience to guide you through your storm.  There is no cost to you, so call and let us help.

FAQ's

What is a short sale?
A “short sale” is what happens when a mortgage company agrees to take less than they are owed on the sale of a house.

Why wouldn’t my mortgage company just foreclose on me?
Because your home would be worth less after foreclosure and the foreclosure expense than it would be as a short sale. It makes more sense for the lender to agree to a short sale.

Why wouldn’t I just allow my home to go into foreclosure?
Because a foreclosure is far worse on your credit than a short sale would be. While it may be tempting to run from the problem, you may learn to regret running in a few years when you want to forget about this time in your life but the foreclosure continues to financially haunt you.

When you say “no cost”, what does that mean?
Once you call us, in most cases you will stop all payments for the mortgage, HOA fees, and taxes. And, if you are no longer in the house, the utilities. 

Who pays the commission?
Your lender pays the commission and other closing costs.

How long does a short sale take?
45-90 days

What if my auction sale date is close? Is it too late?
No. Just call us immediately. If the lender sees positive action, we can get them to hold off on the foreclosure or trustee sale.

Should I continue to make my payments?
This is a personal decision, but probably not if you are behind and can’t catch up, or your lender is beginning to asses you heavy fees.  A Short Sale should not be considered a way to escape financial responsibility.  Rather, it’s there for youThis is a personal decision on whether you have the means to continue or not.

Is it more difficult if I have a first and a second mortgage?
Yes. The second may have to walk away with $1,000 if a sale will not produce enough for the 1^st to be paid off after closing costs. If the home goes to auction, the 2^nd will get nothing.

Will I owe taxes if I sell?
No. In late 2007 Pres. Bush signed legislation stopping the tax penalty on short sales for homes that are primary residences. *Please seek advice from your accountant for confirmation. Check our blog on additional information regarding this legislation.

Will I owe taxes if I bought the house as an investment?
Yes. But it probably still makes sense to do a short sale because the problem doesn’t go away because you may owe taxes. *Please seek advice from your accountant for further information.

Should I continue to live in my house or should I move now?
You can stay, but it is up to you. You won’t be paying much other than power to live in your house and you would be paying rent somewhere else.

What should I do first?
Call us right away! The sooner we get this started, the better  will have and the sooner you can get on with your life.