Short Sale FAQs

Completing a short sale can be a daunting task, but it doesn’t have to be! Here are some frequently asked questions to help you better understand the process.

What is a short sale?
a. A short sale is a sale of real estate for which the sale proceeds to fall short of the balanced owned on the property.  It occurs when the borrower cannot pay the mortgage loan and the lender decides to sell the property at a loss. This allows the borrower and the lender to avoid foreclosure.

ls a short sale right for me?
a. You should consider a short sale if the balance on the mortgage exceeds what the home is worth or if you financially cannot make the payments. There are other situations that you may be encountering, to find out if a short sale is right for you, please contact us.

How will a short sale affect my credit score?
a. A short sale will lower vour credit score but it will not be as severe as a foreclosure. The turnaround time to secure a new home loan will also be shorter than a foreclosure.

lf I do a short sale will I have to pay money at close?
a. You will not have to pay any closing fees. The lender will pay all closing costs as part of the short
sale agreement.  You may however be responsible for paying a portion of the deficiency; this varies from lender to lender on a case by case basis.

How do I get started?
a. Start by contacting us today! We can be reached via email or toll free at 206.992.6543.

How do I avoid foreclosure?
a. There are some options you have to avoid foreclosure:

i. Sell your home
ii. Refinance
iii. Negotiate a forbearance agreement / deed in lieu

If my lender has started the foreclosure can I still sell my home?
a. Of course.  The lender would rather you sell your property than have it go into foreclosure.  That is why lenders agree to short sale your home and pay, usually, all closing costs.

How will a foreclosure affect my credit?
a. A foreclosure is the most damaging to your credit score, worse than bankruptcy. A foreclosure on your credit score will negatively impact your ability to borrow money for several years.

What is a Notice of Default?
a. Notice of default is sent when the borrower has missed payment (s). This is recorded and it starts the formal foreclosure process. The borrower has three months from the date the notice is recorded to work something out with the lender to avoid foreclosure.

What’s the difference between short sale pros and foreclosure cons?

a.  Here is  a list of the differences.

Have any other questions? Call our experts today!  206.992.6543

May 7, 2010 at 4:14 pm | | No comment