SHORT SALE: A BETTER ALTERNATIVE TO FORECLOSURE
A real estate short sale is when a financially distressed homeowner sells his or her property for
less than the amount due on the mortgage. The property’s buyer is NOT the bank who holds the
loan but rather a third party. All net proceeds from the sale go to the lender.
Short sales are a better alternative to foreclosure for two reasons.
Short sales have less of a negative impact on your credit than a foreclosure
Once a short sale is complete, the lender is unlikely to sue you for the balance owed
Why do homeowners let their homes go into foreclosure rather than making a short sale?
Short sales require complex and time-consuming negotiations between the buyer, seller and bank. Many Realtors avoid short sales for this reason.
In addition, homeowners fear that a short sale will add yet another expense to their already overburdened finances. Or they are unsure how to begin the process.
Without an expert in their corner, many distressed homeowners wait too long and are left with no other option than foreclosure.
But there is a better option.
With Short Sale Specialists at your side, you can become free of your house debt without incurring any additional expenses. Our goal is to sell your property without adding more stress and work with the lender so that any balance owed is forgiven.
The best part is, there is no cost to you. Our fee is paid by the person who buys your home – not you.
THE SHORT SALE PROCESS
We begin with a phone call to see if you qualify for a short sale. If we confirm that you have a financial hardship and that your home loan exceeds the value of your home, then you will usually qualify. Reasons for hardship could include medical issues, loss of employment, or bankruptcy. We ask you a few simple questions.
We meet in person or virtually to review the process and start the paperwork.
Once you complete your paperwork authorizing us to represent you, we will submit it to the lender. From this point forward, we will negotiate on your behalf.
Your property will be listed with a Realtor. If you have a Realtor with whom you’re already working, we will meet with them to ensure they’re comfortable going through the short sale process. If no realtor is involved, we know several with expertise and experience.
We will coordinate your home appraisal, which will be ordered and paid for by your lender.
As offers come in, we will guide you through the process of agreeing upon a sale price. We carefully evaluate offers to ensure they have the right features for your lender’s requirements.
We will negotiate with the lender until a resolution is reached. The lender will often want to negotiate over the price, which can take some time.
When negotiations are complete, we will review the lender’s Short Sale Approval Letter and submit it to you for review and signature.
The sale is finalized at closing, so you no longer have the financial burden of your mortgage hanging over your head. The buyer will pay our fee, so you owe us nothing.
MOVING EXPENSE ALLOWANCE!
Sellers in a short sale may receive a Moving Allowance Payment from their Lender. This is conditioned upon sellers being an owner-occupant in residence at the time of, or immediately before closing the short sale. Payment is conditioned upon the sellers’ lender having such a program available, and payment is entirely within the lender's discretion. The range of $1,000 to $3,000 for a Moving Allowance Payment is typical in 2021 when the sellers’ lender provides such a benefit.
