Short Sale Information
A real estate short sale can be the perfect solution for many homeowners. A
short sale allows homeowners to sell their property for less than what they owe
on it, without having a foreclosure filed on their credit. Our professional
negotiators deal with the bank and any other liens against the property. If
everyone agrees to our offer price, we purchase the property and the homeowners
are able to move on with their lives.
What is a short sale?
- A real estate short sale is a process in which the lender allows a
homeowner to sell a property for less than the mortgage balance. All
proceeds of the sale go to the lender. For example, John Doe currently owes
$500,000 on a property, but due to current market conditions, the property
is now worth $300,000. We offer to purchase the property for $300,000 and if
the bank agrees, John would be able to walk away from the property avoiding
This sounds too good to be true. Why would a lender agree to short sale and
take a loss?
- It is a simple matter of dollars and sense. When a lender forecloses on
a property, it costs them about $60,000 in fees. In addition, it is very
rare that the lender will sell a property for more than what the house could
sell for in a short sale. Finally, the lender runs the risk of having to
maintain a vacant house if the house does not sell immediately at
Is a short sale right for me?
The Following are reasons why many homeowners decide to short sell their
- If you owe more than your property is worth, and it does not make
financial sense to keep the house.
- If you are struggling to make your mortgage payments.
- If your interest rate, monthly payments, or mortgage balance has been
How much is this going to cost me?
- We charge absolutely nothing to the homeowner. If the
Bank approves the Short Sale, we purchase the property and cover all closing
What is the difference between short selling and foreclosing?
- A foreclosure will negatively affect on your credit score. Not only will
this drastically drop the score, but will prevent the person from obtaining
any type of financing for 7-10 years. Even after this period, the mortgage
loan application will always state that the borrower had a foreclosure in
the past, and can seriously affect that person’s ability to obtain financing
and credit in the future.
- A short sale will affect the credit, but not nearly as much as a
foreclosure. The credit will be negatively affected for approximately 24
months,. By Fannie Mae Guidelines, one should be able to purchase another
home after 24 months of having done a short sale.
Are there any tax consequences?
- The Debt Relief Forgiveness Act and Debt Cancellation allows
homeowners to short sell their homes up to 1 million dollars with no
tax consequences. Be sure to consult a tax professional about your
specific situation. You can also visit the IRS website at www.irs.gov.
What is your experience with short sales and negotiating with lenders?
- We have an entire team whose sole job is to deal with banks and lenders
every day. They have developed direct relationships with some of the largest
lenders in the US. These are the trained professionals pulled from
banks to do the work of Short Sale negotiation. With our
Negotiation Team working for you, you will have the certainty of knowing
that you are moving through the Short Sale process as smoothly and as
effectively as possible.
We can help: We will take care of everything for you. We
negotiate with the lenders, and we purchase the property. You pay absolutely
nothing, focus on your life while avoiding a foreclosure reporting on your