This term refers when a homeowner who is affronting financial difficulties to do their mortgage payments sells his/her property for less than the amount due on the mortgage.
This type of transaction needs to be approved by the Lender, this is why we’ll gather all the necessary information/documentation and present it to the Lender in order we can achieve the sale.
In the below section you will find a question-answer material that we have prepared to present you, with some information related to the Short Sale process that might be of your interest. Remember that you will not be alone. We will assist you all along the way!
Why is a Hardship Letter needed?
A Hardship Letter is a signed and dated letter the homeowner do to the Lender, explaining the circumstances why he/she has not able to continue doing the mortgage payments, and therefore why is requesting their approval for the Short Sale.
The common and frequently typical hardship accepted by Lenders includes:
- Job loss or significant income loss
- Family illness or injury
- Death of Spouse
- Divorce or split of couple/partner
- Change in mortgage payments or unforeseen increase in living expenses
Who pays the Realtor services in a Short Sale transaction?
This is a typical question when speaking about Short Sales. First of all please note our Company do not charge any fee for the processing of a Short Sale. Real Estate commissions are included in the negotiation with the Lender to be paid from the sale proceeds at closing, upon Lender’s approval.
Will my credit score be affected with a Short Sale?
Short Sales may affect your credit score rating, however your credit report will be significantly more affected if your property goes into foreclosure. Some expects allege Foreclosure is the most damaging event in a credit reporting – even worse that bankruptcy.
What documents are needed in a Short Sale?
It will be needed some documents from the Homeowner to demonstrate to the Lender that the Homeowner is indeed having a hardship for which has not been able to continue with his/hers mortgage payments obligation. These documents includes a signed and dated Hardship Letter, Mortgage Statement, the last 30 days Pay stubs, or a current Profit and Loss statement in the case of being a self employee, last 2 years Income Taxes and the last two months Bank Statements (additional documents may apply).
What is the expected time frame to close?
This is one the main concerns and complaints among Homeowners. It depends primarily on the time the Lender takes to review the information submitted to approve the Short Sale terms. Once the Short Sale terms Approval is received from the Lender, closing typically occurs anywhere from 45 to 60 days,. Our Short Sale Department will diligently work in gathering all the paperwork needed, in order to submit a complete Short Sale package to the Lender. This way we will avoid any unnecessary delays in the processing of the Short Sale transaction.
Will my property qualify?
If you are considering doing a Short Sale, and you want to know how much your Property is worth, please feel free to click on the “Property Value” button below, in order we can gather this information for you.
How do I begin the Short Sale process?
If you are decided to move forward, please feel to get in contact with us by phone, email or by clicking on the “Short Sale” button below to send us a message. We will set an appointment with you, review your documentation, and will let you know if you do qualify for a Short Sale.