Short Sale/Foreclosure FAQ's

What is a short sale?
When a home is sold and the proceeds from the sale are less than the total mortgage payoff and the seller can not or will not pay the difference, that constitutes a short sale.  Short sales must be approved by the seller's lender or lenders.  

If I want to keep my home, can a short sale expert help me in that process?
Yes.  The first question I'll ask will be "Do you want to stay in this home?"  If you say yes, I'll begin the process of helping you work with your lender in order for you to stay in your home.  We'll only pursue the short sale or deed in lieu in the event we're not able to work something out with the bank.  

Who may qualify for a short sale? 
Anyone that experiences a change in income or other financial hardship that risks imminent default or is in default on their mortgage will normally qualify for a short sale.

If I can't make my payments anyway, why not just let the house go back to the bank?
click here for foreclosure vs. short sale comparison

Are there any charges to me as the seller if I choose to do a short sale?
There are no charges to the seller however, if you sell short, you can not take any money away from the transaction either. 

Will I have to make up the difference between what my home sells for and what I owe the bank?
Not if you have an experienced short sale specialist in your corner.

Are there any government programs that may help me in my situation?
HAMP and HAFA are both government programs that may be able to help you in your current situation.  Have your short sale specialist explain these programs and how you may benefit from them. 

If I choose to do a short sale, can the lender still foreclose on me during the process?
Not under the HAFA rules but this is another area you need a short sale specialist for guidance.

What is a "deed in lieu" and how does it compare to a foreclosure or short sale?
Basically with a deed in lieu the owner signs over all rights to the property to the lender in exchange for being released from the obligation to pay the balance of the mortgage.  Your short sale expert can explain the advantages and the disadvantages of the deed in lieu.

Can a friend or family member buy my home out of short sale status?
Banks will almost always have all parties involved in the sale sign a document stating that they are not a relative, friend or have any relationship to the seller.

Click here to connect with a short sale/foreclosure specialist