Short Sale F.A.Q
What is a short sale?
A short sale occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and a decreased credit score for the borrower.
Will I qualify for a short sale?
If you can prove that you are struggling to make your mortgage payment or are facing some other type of hardship (such as a divorce, job transfer, decrease in pay, medical emergency etc.) then a bank will seriously consider approving a short sale. Our team of experts can counsel you on whether or not you would likely qualify for a short sale.
Will I be responsible for the difference between what I owe and what my home sells for?
In most cases if a lender accepts a short sale they are going to write off the loss, show the debt as settled, and you are able to walk away from the debt without having to worry about your lender coming after you. It is very important that you hire an experienced short sale agent who will negotiate a full, written release from your lender.
Will a short sale ruin my credit?
A short sale is treated by your lender as a “settlement of debt” and, as opposed to a foreclosure or late payments, is infinitely easier on your credit score and for a much shorter period of time. New Team Realty can refer you to a trusted credit repair company who can counsel you on ways to increase your credit score.
Can I afford a short sale?
A short sale will cost you nothing! If approved, your lender will pay all closing costs, commissions and escrow fees.
Will I still owe property taxes on my house when I do a short sale?
In most cases, the lender will pay for any property taxes that are owed on the house. We include any property taxes that are due on the property in our negotiations with the bank.