{"id":154,"date":"2014-02-27T16:53:52","date_gmt":"2014-02-27T16:53:52","guid":{"rendered":"http:\/\/keithfenceroylaw.com\/?page_id=154"},"modified":"2014-03-17T16:45:57","modified_gmt":"2014-03-17T16:45:57","slug":"short-sale-faq","status":"publish","type":"page","link":"https:\/\/keithfenceroylaw.com\/?page_id=154","title":{"rendered":"Short Sale FAQ"},"content":{"rendered":"

Short Sale Frequently Asked Questions<\/strong><\/h1>\n
1. What is a Short Sale?<\/strong><\/h5>\n

A short sale occurs when the bank accepts a pay off for less than the outstanding mortgage balance on the subject property. Essentially, the bank is shorted the funds due it. For example, you have a $500K mortgage on the property, but the home may be worth $400K. The bank will accept the $400K payment in lieu of the property being foreclosed.<\/p>\n

2. Who qualifies for a short sale?<\/strong><\/h5>\n

Anyone who is facing a hardship may qualify for a short sale. Hardships include, but are not limited to: Loss of job, Health issues, Property value is less than the mortgage, Tenants aren\u2019t paying and you can no longer afford the mortgage payment, Decrease in salary, Interest rate adjusted and can no longer afford the mortgage payment. Bottom line, you simply cannot afford the property<\/p>\n

Please note, it is a misnomer that one has to be late on one\u2019s mortgage to qualify for a short sale or that one has to be completely insolvent. We have successfully executed short sales for clients who were current with their mortgage and others with over a million dollars in assets. Many individuals are candidates for short sale, but due to not being informed, they are not taking advantages of all options available to them.<\/p>\n

3. How do I get started on a Short Sale?<\/strong><\/h5>\n

It\u2019s easy. Call us for a free consultation and preliminary prequalification, we\u2019ll send you a short sale package, you complete the package, return it to us, and we begin the short sale process for you. Call us now, 773-654-2404.<\/p>\n

4. Will I have to pay a deficiency?<\/strong><\/h5>\n

Our goal in executing a short sale is to position the borrower to walk away from the property without owing any of the deficiency. However, the bank may ask for a cash contribution at closing, signing of a no interest soft note for portion of the deficiency, 1099 the individual, or seek a full deficiency, all of which have a higher probability if there is a second mortgage company. Please contact us for more information regarding President Bush\u2019s moratorium law on 1099\u2019s for short sales.<\/p>\n

5. I am current on my mortgage, will my lender consider a Short Sale<\/strong><\/h5>\n
We have done short sale for clients who were current on their mortgage; however, from our experience there are some banks that require the seller to be delinquent, such as 30 days late. We would need more information on your situation, property, and lender(s) to ascertain the viability of the short sale. We welcome you to call us to discuss your short sale issue.<\/h5>\n
6. Why would a mortgage company agree to accept a Short Sale?<\/strong><\/h5>\n

The bank\u2019s decision is based on what\u2019s best for the bank financially, and after analyzing a situation the bank will determine whether it cost less to short sale the property or foreclose on the property. Note, foreclosing on a property is expensive for banks because it entails holding cost, legal fees, the risk of depreciation, and\/or the property being vandalized. With this, in most cases it should behoove the bank to short sale as opposed to foreclosing on the property.<\/p>\n

7. I have two loans, can I still do a Short Sale?<\/strong><\/h5>\n

Yes. We have closed many deals with two loans, including a lender holding both loans as well as negotiating with two different lenders for their respective loan.<\/p>\n

8. My property is in significant repairs. Can I still short sale the property?<\/strong><\/h5>\n

Yes, we have sold many distressed property in need of repair. Our alliance of realtors are experts in finding the right buyer to acquire the property AS-IS, meaning the buyer takes the property as it is without repairs.<\/p>\n

9. I am concerned about my credit, how will a Short Sale affect my credit?<\/strong><\/h5>\n

A short sale will impact your credit. However it truly depends on how the bank reports it to the credit bureaus. If they report it paid as agreed, it shouldn\u2019t have too much of an impact. However, it may be reported as, but not limited to, agreed to accept a lesser amount or profit and loss, in which case it will negatively impact your credit report. Nevertheless, the impact is less damaging than a foreclosure, deed in lieu, or bankruptcy.<\/p>\n

10. Why is a short sale better than a deed in lieu?<\/strong><\/h5>\n

To execute a deed in lieu, there can\u2019t be any liens on the property. With a deed in lieu, the bank may hold you accountable for the difference when they sell the property in the future. Banks would rather the seller short sell the property than take the property back. Banks only care about performing assets so if the bank takes back a non-performing property it may cost them a lot more than a short sale. It could be a little more financially difficult for lenders to accept the deed in lieu than a short sale. Additionally, short sales are less of an impact on one\u2019s credit compared to a deed in lieu.<\/p>\n

11. Will debt settlement impact my credit?<\/strong><\/h5>\n

Yes, but because most options have a negative effect on your credit; you would think you would want to become debt free as soon as possible allowing your credit to start improving itself? \u00a0Aside from a Chapter 7 Bankruptcy, Debt settlement is one of the quickest and cheapest way out of debt.<\/p>\n

Contact us for more information:<\/strong><\/h4>\n

<\/strong>If you have questions or would like to discuss your situation, feel welcome to contact us at ph: 773-654-2404 or fax: 773-857-1633 for a free consultation. Se habla espa\u00f1ol.<\/p>\n","protected":false},"excerpt":{"rendered":"

Short Sale Frequently Asked Questions 1. What is a Short Sale? A short sale occurs when the bank accepts a pay off for less than the outstanding mortgage balance on the subject property. Essentially, the bank is shorted the funds due it. 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