Short Sale Information
Why Short Sale?
Doing a short sale helps the seller to maintain his/her credit without being foreclosed upon or declaring bankruptcy. A short sale also benefits your neighbors by not decreasing the value of the surrounding homes. And, the short sale process is very discreet. To your neighbors and the rest of the world, it simply looks like you are selling your home.
How does the Short Sale process work?
The process begins with the seller setting up an appointment with a member of our team to complete necessary paperwork. Once the home is listed, the selling process begins. Our team utilizes the best internet and print resources available. The home is shown just as any other listing. When an offer is received on the house, our legal team does the negotiating for us. The legal team then submits the offer to the bank holding the mortgage. Once the bank accepts the offer, the closing process happens.
Who qualifies for a short sale?
Some of the qualifying factors of a short sale are job loss, a reduction in income, a divorce, health changes, family status changes, and a relocation for employment. But even if you qualify initially, there is no guarantee that the bank will approve an offer.
What do we need from you?
In order to do a short sale, we will need bank statements, W-2s, and pay stubs. More importantly, we will need your cooperation and understanding. The short sale process can often be a somewhat lengthy one, and we need you (as the seller) to understand that we are doing everything in our power to get it closed quickly and efficiently. To accomplish a successful short sale, we need you to be willing to work with us.
What else do I need to know?
One of the most important facts to know about going into a short sale is that there is never a guarantee that the bank will approve.
What are the risks?
We have a very high short sale success rate, however, there are some risks you should be aware of. They include:
- 1099C. Your lender may issue a form 1099C which may have tax implications for you. This should be discussed with your tax preparer.
- Deficiency Judgment. Your lender may decide not to waive the deficiency and will maintain the right to collect at a later date.
- Promissory Note. The lender may ask you to sign a promissory note at closing to make payments on the full balance or a portion of the balance. This is normally an unsecured debt and is often at 0% interest.
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