Frequently Asked Questions

Maybe you have a few questions. That’s okay; most people do. So here’s a quick collection of some of the questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you.

Q: What is A Short Sale?

A: Short Sale Definition: A short sale or “short pay” is a type of real estate sale where the lender
allows a property owner to sell a property for less than what is owed on the mortgage balance.
The proceeds of the sale go to the lender, and in return, the seller is able to avoid foreclosure.
For example, If Jimmy Q’s current loan balance on a property is $600,000, but the property is
now worth only $300,000, Jimmy might be able to short sell the property. This means that
Jimmy would sell the property for market value (around $300,000), regardless of the loan
balance. All of the proceeds from the sale would go to the bank. Out of these proceeds, the
bank would pay realtor commissions, their portion of title/escrow fees, and any other
pre-approved closing costs. For taking action (and saving the bank from a costly foreclosure)
Jimmy would be rewarded with not having a foreclosure recorded on his credit. Lenders only
agree to short sales if they receive a full and complete package meeting the specific guidelines
of that particular lender.

Q: How Do I Know If it is My Best Option?

A: In most situations, people have 3 options available to them. The first is to keep the property.
This means first coming current on the mortgage (paying all past due payments and late fees),
and then making the mortgage payments every month. The second option is to short sell. The
third is to foreclose (we NEVER recommend a foreclosure). Here are some reasons why many
people decide to short sell:
● They owe more than their home or investment property than what it’s worth, and it
does not make financial sense to keep the property.
● They are struggling to make the mortgage payments.
● Their interest rate, monthly payments, or mortgage balance has been (or will be)
increasing.
● Relocating to a new area and paying for the current property and a new living
situation is not feasible.
● They have been denied for a loan modification, or provided a “temporary” plan.

Q: How Much is This Going to Cost Me?
A: Unlike some companies, we charge absolutely nothing to the homeowner. In fact,
MakingHomeAffordable.gov states that soliciting money for short sale negotiation and
consultation services is one of the most common types of home relief scams. As reputable
company, we will never ask you for money at any point in the short sale process.

Q: If You Are Not Going to Charge Me Anything, Then How Do You Get Paid?
A: We either get paid from the Buyer at closing. Our fee is worked into their closing costs, when
buying the home. We do not get paid anything unless we are successful in completing your
short sale. When the short sale is complete, the lender pays us, not you. We will never ask you
to pay us anything!

Q: How Does a Short Sale Affect My Credit? How Long Does a Short Sale Last on My
Credit?
A: A short sale will affect the credit, however, significantly less than a foreclosure. In addition,
once a short sale is completed, you will no longer continue to generate mortgage lates on your
credit. As a result, the repairing of the credit should start immediately. There are currently
several lenders and loan programs that allow a borrower to obtain a new home loan to purchase
a property shortly after a short sale is completed. Through a short sale, a foreclosure is NOT
recorded or even mentioned on the credit report. In regards to privacy, when someone
foreclosures, a public notice is filed and a public auction is held. However, our short sale
process ensures that the seller will maintain their privacy. We do not require any signs on the
property and there is no public notice or auction.

Q: Can I Short Sell if I’ve Been Denied for a Loan Modification?
A: Yes.

Q: Why Would a Lender Agree to Short Sell Versus Foreclosure?
A: Lenders have several factors to consider when weighing a short sale versus foreclosure.
When a lender forecloses on a property, it could cost them about $60,000 in attorney fees. The
lender then has another property they have to deal with. They have to find an agent to sell the
property, maintain the property, etc. They would also most likely get LESS than what the house
would sell for in a short sale. In most cases, the lender would rather you short sell, then
foreclose.

Q: What is the first step I should take?
A: Call our Short Sale Expert today, so we can answer any questions you have, as well as send
you the documentation needed to get started!

Q:  Is there any obligation when I submit my info?
A: There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your house to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.

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