WHAT IS A SHORT SALE?

A short sale occurs when a home’s value is less then the unresolved mortgage debt plus sales costs (sometimes called an upside down mortgage). The mortgage bank(s) must then agree to write-off a portion of the outstanding loan debt in order to close the sale.

• Example: a homeowner who is facing foreclosure and still has a high existing first mortgage has the Mortgage Bank agree to eliminate part of the debt, accepts the offer for the market value of the home, and sells the home.
• It is important to remember that a Short Sale is a very complicated transaction in practice, so working with trained professionals like us is essential.

Our team of experts negotiate with the mortgage banker(s) on your behalf. We sell your home to another buyer quickly, rather than the bank foreclosing it. Bank accepts a discount on a homeowner’s mortgage to allow a sale which allows you the Homeowner to avoid foreclosure/bankruptcy.

ADVANTAGES OF A SHORT SALE VS. FORECLOSURE

Better for credit rating Choosing foreclosure will damage a person’s credit rating for seven years, but a Short Sale is far less damaging and has a less lasting effect.

Banks recommend Short Sales rather than foreclosure After a foreclosure, a past homeowner must wait five years before the FNMA will underwrite a new loan, but only has to wait two years after a Short Sale.

Relief from HELOC 2nd Mortgage We negotiate with both lenders to significantly reduce or completely eliminate the HELOC loan debt.

Less embarrassment No one likes the idea of all their neighbors seeing a ‘Bank Foreclosure’ sign in their front yard. With a Short Sale, we sell your house just like everyone else. It is a more dignified option in a difficult situation.

“Cash for Cooperation” Some banks now offer a cash incentive to cooperate with a short sale, rather than the property being foreclosed on by the bank (the banks that offer this, and the amounts offered are decided on a case by case basis).