Frequently Asked Questions

Common Questions

Qualifications:

I. In order to be eligible for a short sale, you must demonstrate financial hardship (circumstances that prevent you from paying off the loan). Acceptable hardships vary depending upon the lender's particular guidelines, circumstances include:
     1. Unemployment (job loss/business failure)
     2. Reduced income (salary decrease/wage garnishment)
     3. Job relocation
     4. Increased expenses (mortgage rate adjustment)
     5. Medical situation (severe illness/medical bills)
     6. Death (spouse/family member)
     7. Divorce or separation
     8. Bankruptcy
     9. Property damage
     10. Military service
     11. Incarceration
II. The amount owed on the mortgage should be in excess of the home's current market value. The lender will not short sale the property if there is equity in the house. In some cases, if the balance of the first lien is less than the current market value, additional mortgages or liens that have been collateralized by the property may still make it eligible for a short sale.

●        The property is worth less than is owed.

●        The seller has some hardship that makes it impossible or extremely impractical for the seller to keep the property.

●        The seller is cooperative and willing to work with a real estate broker to package the short sale.

●        The lender is contacted and expresses willingness to entertain a short sale.

●        The property is listed with appropriate caveats and protections for the seller, the property is properly priced and effectively marketed.

●        The lender is presented with a solid offer accepted by the seller, along with a completed short sale package, fully executed contract of sale and narrative explaining why the short sale is necessary and desirable.

●        The lender approves the offer, there are no other title issues and/or additional judgments, and escrow closes as usual. All net proceeds go to the lender.

 

There are many factors that can affect the timeline. Typically, a short sale can take as little as 4 to 6 months to complete, however there are some instances where it can take up to 2 years.

NO. Homeowners do not pay any program fees or retainers. We are compensated by the lender, the commission is paid out of their NET proceeds as part of the closing, but ONLY upon a successful completion of a short-sale.