Understanding what a short sale is and how the process works can be daunting. The answers below will hopefully assist you in your process.
Frequently Asked Questions About Short Sales
What is a Short Sale?
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan.
Who authorizes a Short Sale?
In a short sale, the bank of mortgage lender agrees to discount a loan balance due to an economic or financial hardship.
Why would a Lender agree to lose Money?
A lender loses significantly more money if they have to incur the additional expenses of a foreclosure, as opposed to accepting a short sale. Lenders are in the business of lending money, not owning homes.
How Does a Short Sale Help Me?
It helps you avoid a credit destroying and emotionally draining foreclosure will also help save your credit. Typically a foreclosure will drop you credit score up to 300 points per loan, and will stay on your credit report from 10-15 years.
I’ve already received my foreclosure notice. Is it too late for a short sale?
The short answer is No! There are a few variables, though, that can affect the foreclosure timeline. A qualified Realtor, or better yet, a CDPE (Certified Distressed Property Expert) can help you extend the foreclosure timeline up to six months, and in many circumstances up to seven or eight months. A home sale can be done and approved, up to the day of the bank sale, or auction of the home.
