Frequently Asked Questions About Foreclosure and Short Sales

 

Why would my lender allow for a short sale to help me?

A short sale typically returns more to a lender than a foreclosure. The average savings compared to foreclosing on a property is around $14,000. The lender receives this monetary benefit and also will receive payment on the loan 6 months earlier than it would through a foreclosure. This allows them to recoup a portion of their investment sooner. Lenders also have many legal fees and costs associated with the foreclosure process that can be very expensive, allowing for a short sale reduces these costs to the lender. There are many incentives to preform a short sale on your house.

 

How successful is The Short Sale Firm at dealing with short sales?

The Short Sale Firm is comprised of individuals with many years of real estate experience amongst themselves. They pride themselves on being able to negotiate the best deal for each situation in the best interests of their clients to relieve them of their debt.

 

When should I start my short sale with The Short Sale Firm?

You should begin the short sale process when you realize you can no longer afford your mortgage payments. This allows the property more time to be properly marketed and increases your opportunity for higher prices. The sooner you start, the higher the likelihood of your success.

 

What will it cost me to conduct a short sale?

The real estate fee's associated with conducting a short sale are paid for by the lender, there is no out of pocket costs to you.

 

Does The Short Sale Firm buy my property?

No, The Short Sale Firm never takes ownership of your property. Some companies use a tactic to buy your home and conduct the short sale, this opens you up to a lot of liability. It would not be possible for us to purchase your home as an investment while acting in your best interests as your short sale negotiator.

 

How long does it take to close a short sale?

Usually 2-5 months depending on the lender.

 

Why does it take so long to get through each step with the lender(s)?

Each Loss Mitigation Consultant at the bank can have up to 400 files on their desk that they are negotiating at any given time. For this reason, it can be extremely difficult to get through to or receive return calls from the banks. Often the will take days, or even weeks to return phone calls. Sometimes we are forced to call them (with up to 2 hours on hold per call) as many as 10-12 times before they will return calls. Luckily, with many lenders, The Short Sale Firm has an ongoing relationships that allow us to negotiate multiple transactions with the same phone call.

 

How are non-owner occupied properties affected when short selling them?

For the purposes of short sale negotiations, non-owner occupied properties are handled in the same way as owner occupied properties.

 

What liability do I have when doing a short sale?

It is always best to consult with an attorney for advice on your liability. The Mortgage Debt Relief Act of 2007 has reduced homeowners' tax liability for debt forgiven by your lender. The Short Sale Firm seeks to negotiate a full release of lien and requests that the debt to be considered settled. We work to negotiate the best deal for you.

 

How do I get started?

Visit our Contact Us page to email or call us and get the process started.