Frequently Asked Questions
Q: What is a Short Sale?
A:A Short Sale is a Lender’s voluntary acceptance of less money than is owed to allow a property to be sold as an alternative to foreclosure.
Q: Why would a Lender approve a Short Sale?
A:If the Lender believes the Short Sale offer is better than what they would net if they took the property back at foreclosure and sold it themselves, they will most likely approve a Short Sale. The costs of taking a property back in foreclosure are tremendous for the Lender, including accrued interest, attorney’s fees, listing charges, and maintenance costs.
Q: How do I know if a property is a Short Sale prospect?
A:If the homeowner is behind on their mortgage, has some sort of hardship, and does not have the financial ability to solve the problem on their own, then it might be a good Short Sale prospect. Run it through our Is It a Short Sale Prospect? analysis and fill out an Information Sheet with the details – we will contact you and let you know whether we think we can help with a Short Sale.
Q: Why would a homeowner opt for a Short Sale?
A:A successful Short Sale will prevent a foreclosure from appearing on the homeowner’s credit report. If the home is foreclosed on but the mortgage company is not able to sell the home for what is owed on it and recoup all of their costs, the homeowner is still obligated for the difference. In addition, the Lender will tack on the arrearage, interest charges, legal fees, listing charges, and maintenance costs of the home while it is up for sale. In pursuing a Short Sale vs. foreclosure, the homeowner will also have the satisfaction of knowing they tried everything possible to fulfill their obligation to the Lender on the money they borrowed.
Q: Why shouldn’t I attempt the Short Sale myself?
A:Short Sales are an incredibly long and arduous process. You can spend hours and hours gathering and submitting paperwork and on hold waiting to hear from any number of committees. In order to be successful with Short Sales, you must devote a huge amount of time to them. In this market, the last thing a real estate agent needs to be doing is sitting on hold with Countrywide instead of focusing on listing and selling properties.
Q: What do I have to do?
A:Just identify a Short Sale Prospect using our quick analysis, submit it to us, and find a Buyer at a lower, more competitive price. We will handle the rest!
Q: How much is this going to cost the homeowner?
A:Not a penny! There are absolutely no fees or costs to the homeowner.
Q: What about my commission?
A:When you work with us, you will earn your full listing commission and retain your listing. You also have the opportunity to sell the property at a lower, more competitive price and earn the selling commission, too!