SHORT SALE
QUESTIONS AND ANSWERS
A Short Sale occurs when the proceeds from selling your home are insufficient to cover the mortgage balance, commissions, and other closing costs. This situation is common in today’s market, particularly for homeowners who purchased with little to no down payment or financed a significant portion of the purchase price. Many homeowners believe their only options are foreclosure, bankruptcy, or remaining stuck with their property—often because they are unaware of the Short Sale alternative.
In a Short Sale, the lender agrees to accept less than the full amount owed as a “payment in full” to prevent foreclosure. If approved for the lender’s Short Sale program, the lender will “write off” the remaining mortgage balance, allowing the home to be sold at market value while covering standard closing costs.
We guide you through the entire process, handling the necessary paperwork and negotiations. Since Short Sales can be complex and dealing with lenders can be challenging, having an experienced team on your side makes a significant difference. Once the process is complete, your home is sold, you won’t need to bring any money to closing, and a foreclosure won’t appear on your credit report. Our compensation comes from the commission paid by the lender, meaning there are no out-of-pocket costs to you.
What are the advantages for the homeowner in doing a Short Sale?
Why would a mortgage lender opt for a Short Sale instead of foreclosing?
Foreclosure is a lengthy, expensive process that varies significantly by state. Banks prefer to "cut their losses" and move on, replacing "bad loans" with "good loans." Generally, mortgage companies do not want to get involved in real estate.
The legal and procedural complexities of foreclosure differ widely between states, and lenders would rather not allocate their financial and legal resources to navigate these state-specific laws.
Additionally, lending institutions are required to hold reserves—often a multiple of the value of their Real Estate Owned (REO) properties. Since lenders make money by issuing loans, maintaining large reserves tied to these properties limits their ability to lend, making them keen to minimize their REO holdings.
Do you have Questions in regards to Short Sale? What qualifies a homeowner for a Short Sale?
Book some time to review your options
Tony Vejar
602-361-5867