Short Sale FAQ

Why will my bank let me sell my house for less than I owe?

By selling your house at a lower cost than what you owe, the bank can avoid the foreclosure process which would normally cost them even more time and fees than the small loss of a short sale.

I can’t afford to pay you commission or other fees that are in the listing agreement.

Not a problem! The cost and any other fees will be paid by your lender.

I don’t want to show the property and have an open house. Can you list it this way?

Of course. Our marketing and internet team will take photos, videos and any other information needed to create a one-of-a-kind website that will take potential buyers on a virtual tour of your house.

How much will this cost me?

The short sale process carries zero costs to homeowners.

What about the difference of the sale? Will I still owe this to my lender?

Every short sale is unique. Depending on the lender and current state tax law, unaccounted debt may be forgiven. Please contact your tax accountant for further information.

How long does this usually take?

The short sale process and time frame really depend on the lender approval which can range anywhere from 4 weeks to 6 months, but may take longer.

Do I have to move out of my house immediately?

No. While we’re waiting for the approval from the lender, you will be allowed to stay in the home without any additional payments.

What about my 2nd mortgage?

In order to complete the short sale, both lenders must approve the deal. If the first lender agrees to the terms, we must negotiate the terms with the second lender too.

Can I sell my house to my spouse or other relative?

In most cases, the lender will not allow a short sale to a relative or related party, but it all depends on the lenders terms. A lender often has the seller and buyer sign an “Arm’s Length Transaction” affidavit that prevents the short sale to a relative.

How do you determine how much my house is worth and how much to sell it for?

The home will be listed on the market and the strongest offer from a potential buyer is measured against what the lender and loan investor believe the property to be worth through the current Fair Market Value. Our office issues a broker priced opinion which is measured against a 2055 Appraisal Report to determine a Fair Market Value.