We are offering this series as a guide to help you overcome the myths as they relate to the Short Sale process of selling your property.
Question: How many months late do I have to be on my mortgage to qualify for a short sale?
Answer: You don’t have to be late at all. Examples:
1. There needs to be a financial concern. Your ARM (Adjustable Rate Mortgage) is rising in monthly payment.
2. Loss of Job or income.
3. Health or Medical issues
4. Extraordinary loss in home value
5. Many more…call or blog us to discuss
Most important…hire an experienced Short Sale Real Estate Agent (3+ Short Sale Listing closed in the last 6 months).
Look for more in the series daily! Ask questions, please!
There are so many myths about short sales. Here’s a very common question with an answer that will probably surprise you:
#2 Q: I just missed a payment and I know I will miss more…how long does the foreclosure process take and is there time to do a short sale?
A: The foreclosure process takes differing times depending on your state. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.
We’ve taken listings that had as little as 7 days before the sale was to take place, and saved the home from foreclosure with a successful sale. Even though it’s never too late, we highly encourage anyone that is struggling with payments and feeling there is no way out, to contact a Short Sale Specialist to discuss listing the property.
Look for Q&A to more Short Sale Myths…Fact or Fiction soon.
It’s amazing when we talk to sellers about the dynamics of a Short Sale and learn that the information that was given by real estate professionals that proclaim to be knowledgeable in dealing with Short Sales.
Let’s start with one of our most asked questions:
#1 Q: I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
A: No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holder, all of these negotiations take place between your lender and your real estate agent.
In our experience with lenders, we find the second lien holder is very wiling to negotiate a settlement. Let’s face it, if the property goes to foreclosure they get nothing…so, if your going to do a short sale make sure your agent has experience negotiating with these lenders.
Look for Q&A to more Short Sale Myths…Fact or Fiction soon.
Here’s a question that is asked at least one time a day, and with good cause:
Q:How do you get paid? (the real estate agent)
A: The bank (your lender) will pay commissions along with all the other usual closing costs.
That’s important for you to know. When your in financial duress the last thing you want to hear is that to avoid foreclosure it’s going to cost you money! We also want to point out a very common question that every seller asks us at the time an offer has been made on the property….
Many offers come asking for extra’s, things like seller to pay closing costs. This is confusing for the current owner (seller) of the home. In reality, if your home is up for Short Sale your signature is required on the purchase offer because you are the legal owner on title. But in actuality the bank is the seller.
