Frequently Asked Questions

What Is a Short Sale?

A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owner’s mortgage. A short sale is usually a sign of a financially distressed homeowner who needs to sell the property before the lender seizes it in a foreclosure. All of the proceeds of a short sale go to the lender, and the lender then forgives the remaining balance

What are the common terms associated with a short sale?

The common terms associated with a short sale include “short payoff”, “short sale agreement”, “pre-foreclosure”, “lender approval” and “cash for keys”.

What is a foreclosure?

A foreclosure is when a lender seizes a property from a borrower who has defaulted on their mortgage payments.

What are the advantages of a foreclosure?

There are several benefits to doing a short sale:

You get to stay in the home during the short sale process.
Your credit isn’t ruined
You are eligible to purchase another home
You don’t pay to do a short sale

What is a probate?

Probate is the process completed when a decedent leaves assets to distribute, such as bank accounts, real estate, and financial investments. Probate is the general administration of a deceased person’s will or the estate of a deceased person without a will.

What are the advantages of a probate?

The major advantage of a probate is that it allows an executor to settle a deceased person’s estate according to the law or their will.

What is the difference between a short sale and foreclosure?

A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. The foreclosure process occurs when lenders repossess the house, often against an owner’s will.

What are the advantages of a short sale?

There are several benefits to doing a short sale:

You get to stay in the home during the short sale process.
Your credit isn’t ruined
You are eligible to purchase another home
You don’t pay to do a short sale

What is a loan modification?

Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.

How long do loan modifications usually take?

The loan modification process typically takes 30 to 90 days, depending mostly on your lender and your ability to efficiently work through the process with your attorney or other loan modification representative. Note: The loan modification timeline is not set in stone.

What does it cost for our help with the short sale?

Your mortgage company pays us to represent you.

Will I owe anything after the short sale?

We will make sure the lender puts in writing that your debt is settled after the short sale. This means you will have no further financial obligations to worry about once the home is sold.

Will I receive money from the short sale

Most of our clients qualify for relocation assistance from the bank. The amount we’re able to negotiate for ranges from $1,500 to $10,000.

How will a short sale affect my credit?

It depends on many things, including late or missed payments. A short sale may appear on your credit report as “settlement or pre-foreclosure redemption,” “paid in full for less than full balance” or other terms.

*Missing mortgage payments will definitely affect your credit rating.

How long does a short sale take?

A short sale could take anywhere between 3 to 6 months for approval, and another 1 to 2 months for escrow and finalization. This is the typical average for a short sale; however it can take much longer if the information given to lien holders is not current or accurate.

Do I need to move right away?

Do I need to move right away?
No, you can stay in your home and use this time to find a new place to live. This will actually help with our relocation assistance negotiations, as you may not qualify if you’ve abandoned your property. If the lender knows the house is vacant they may send a property preservation team out to change the locks, leaving you locked out of your home.

I am doing a loan modification; do I still need help?

A loan modification is the systematic alteration of mortgage loan agreement that helps those having problems making the payments by reducing interest rates, monthly payments or principal balances. Your lending institution will also require you to submit a completed questionnaire that includes your personal information, mortgage information, property information, recent pay stubs or a profit and loss statement if self-employed, bank statements, tax returns, an income and expense financial worksheet, and a hardship statement or affidavit. Loam modifications are a lengthy process and chances of approval are small in this economy. Call us to go over your options!