1. What is a short sale?
A short sale is a negotiated sale where lenders and lien holders agree to take less than amount owed to them. These transactions can often be complex with multiple lien holders. With over 350 successful short sales, Housing Assist of America has the experience and systems to negotiate on any short sale transaction. We negotiate so that the lender will not pursue the homeowner for any deficiency after the sale
2. What is the short sale process?
The short sale process consists of the following:
- Short sale consultation with Housing Assist of America – Please call us at 888-877-0078 so we can discuss your options. You may have options that will allow you to keep your property. We want to make sure you are making an educated decision regarding your choices.
- Obtain the required documentation – Each lender requires certain documents to begin a short sale. We have standard short sale package that covers most of the lenders’ requirements. We are also happy to help you fill out any of the documents
- Obtain an offer on the property – Housing Assist of America is an affiliate broker of Coldwell Banker. We have multiple channels to market your property. These include marketing on dozens of websites, within our offices, and through our private investor groups. We heavily screen buyers to make sure they will be able to close once we obtain the approval.
- Negotiate with your Lenders – Housing Assist of America has established relationships with every servicer to ensure the highest possibility of closing your sale. We use cutting edge software for communicating, coordinating and tracking. We have a success rate of over 90% of our transactions approved.
- Open and close escrow – Once the lender has approved the short sale, the transaction becomes more like a regular sale. The buyer has a certain period of time to do their due diligence, obtain their financing, and close. There are still many things that can go wrong at this point so we are very hands-on during this final stage.
3. What is the cost to the seller to short sale?
Housing Assist of America does not charge the seller for the short sale. We are paid a commission from the lender for listing your property. Beware of any short sale company or attorney that charges you upfront for their services.
4. How long does the short sale process take?
The short sale process generally lasts anywhere between 2 to 6 months. During this process, you are able to stay in your property. We will help you through the process to find a new home and get your life back on track.
5. How will the short sale affect my credit?
The short sale’s affect on one’s credit will very from person to person. There are many factors involved. Have you missed payments on your mortgage yet? Have you missed payments on other debts? By concluding a short sale, you may have a reduction of up to 150 points. The lender may report on your credit that the debt was “paid less than full”. This is much better than the foreclosure which may reduce your score by more than 250 points. (Please see our short sale vs. foreclosure comparison for more details)
6. What is the difference between a foreclosure and a short sale?
A short sale is a negotiated agreement with your lenders and lien holders to accept a reduced balance. It clearly spells out what they can and cannot do. You have much more control with this action. A foreclosure does not create any agreement and the laws do not protect you
7. Will I get any cash back from the short sale?
Housing Assist of America will make every effort to get you cash back from the lender. Most lenders and servicers participate in the government’s HAFA program. If you are eligible for HAFA, you may get up to $3000 cash to short sell your property. Some lenders offer up to $30,000 for homeowners to short sale. Please call us today to find out if you qualify for any of these programs!
8. Can I short sale an investment property?
Yes you can definitely short sale an investment property. There are more factors to consider when short selling an investment property. These include uncooperative tenants, move-out money for tenants, and different liability and tax ramifications for the seller. We have closed dozens of investment property short sales and know how to deal with all of these scenarios.
9. Can I short sale if there in an auction date on my property?
Yes. However, his is a very critical period of time. We may be able to put a stop to the sale. With our established relationships, we can get your paperwork into the right hands. If you have an auction sale date, please contact us immediately.
10. Why should I choose Housing Assist of America over my old real estate agent?
Short sales are very different from regular real estate transactions. There are hundreds of variables involved and we have seen almost all of them. With a track record of over 350 approved deals, there are VERY FEW realtors who can claim the same results. When choosing who will represent you, you should ask the following questions:
- How many short sales have you closed?
- Can you show me examples of some recent approvals?
- Who will actually be negotiating with my lender for me?
- Do you pay 3rd party negotiators to handle your short sales?
- What quality control systems do you implement to make sure my transaction will go smoothly?
Please give us a call at 888-877-0078 to compare answers. We think you will find that we have the experience, expertise and system in place to do the best job for you.