What is a short sale?
A short sale takes place when a lender allows a borrower to sell their home forless than the amount owed on the property. 

Why is it to my advantage to short sale my home? 

·        For starters, we will work with yourlender in an attempt to get you completely forgiven of the deficiency thatremains after the sale’s proceeds are taken into account. If successful, yourbank would forfeit their right to ever pursue judgment on the deficiencyamount. In many states, after a foreclosure, the lender holds the right to seekjudgment in the amount owed and can even come after other properties and assetsof the borrowers, including vehicles.

·        A short sale has a less negativeeffect on your credit than foreclosure, especially in the long run. Somebanks don't even report a short sale. Your credit could recover from ashort sale in less than two years, whereas a foreclosure or bankruptcy can take7-10 years.

·        Some lender programs offer $3,000 upto $20,000 BACK to a borrower to complete a short sale transaction.  

How is the short sale process different from a traditional sale?
During a traditionalsale, the homeowner decides to sell their property, often for much more thanthey owe. This means the loan would be fully paid off and the borrower wouldactually make a profit. When offers on the home are received, it is up to thehomeowner to accept or deny the offer.
A short sale on the other hand, puts things in the lender's hands for the mostpart. Since the lender understands they will not be paid back in full on themoney they lent the borrower, it is up to them to accept or deny offersreceived. The main aspects of the sale remain the same. The home is listed forsale and shown to prospective buyers until an offer is received. The processdiffers from a traditional sale once the offer comes in. When received, theoffer is sent in to the bank in hopes of approval. Waiting for the bank'sapproval is the most time consuming in many cases. This is when we will workwith your bank, gaining you every benefit possible. Once the bank responds withapproval or disapproval as well as the short sale's terms (release fromdeficiency, etc.), a closing date can be set.

Why would my lender allow me to sell my home short?
It costs alender $58,000 on average to foreclose on a home. The bank will attempt to sellthe home at auction which is not always successful. If the home doesn’t sell,the property must go through the bank REO process, which can be lengthy.Because of this, many banks are now stuck with vacant properties that have beenforeclosed on, each of which is only deteriorating with time. It is for these reasonsthat it is much easier for a bank to allow you to sell your home short, forgiveyou of the deficiency, and count their losses.

Can I get any money back from a short sale?
Typically the homeowner does not receive any funds at closing from the sale oftheir home when performing a short sale. Recently as part of the Making Home Affordable Plan, and specificallythe new Home Affordable Foreclosure Alternatives (HAFA) Program, qualified homeowners can get $3,000 BACK from a short sale (depending on your lender) to usetowards relocation expenses! 

How can a Realtor® help me?
A Realtor will help you by listing and aggressivelymarketing your property. In addition to this, a Realtor will work with yourlender to get a lower payoff amount approved, allowing you to price your homebelow the competition.

IfI choose to short sale my home, where do I start?
Give us a call at (682) 237-1440.  My team and I will provide you with all of the information you need to getstarted after finding out a little more about your current situation. We willguide you through the entire short sale process, which includes listing yourhome and working with your lender.  We are the experts and have closed thousandsof short sales across the US.

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Courtesy of the Short Sale Network.

Still have questions?  Contact us.