FAQ About Short Sales 

You have probably heard the term “ Short Sale” and wondered just what it was and how it can benefit you.  Here are some of the most frequently asked questions regarding short sales: 

Q.  What is a short sale?
 A.  This is a term used to refer to a sale of property that is in the process of foreclosure but sells before the bank actually takes over the property. 

Q.  Why would a buyer want to buy a short sale property?
A.  A buyer can usually get a better deal on a short sale property than one where the seller is less motivated to sell.  Buyers are very motivated to sell their property using the short sale system because they can no longer make the mortgage payments and do not want to endure a foreclosure. 

Q.  Do I need a broker to facilitate a short sale?
A.  While anyone can negotiate a short sale deal, it is unwise for an inexperienced person to try to do this on their own.  Most banks will not want to deal with those who have no experience in this field and the buyer is likely to pay a lot more for the property than they would if they used an experienced real estate broker that specializes in short sale negotiations. 

Q.  I cannot afford my mortgage - can I get my property sold in the short sale program?
A.  Chances are that you can.  You should contact an experienced real estate broker with knowledge of the short sale process to help you in this matter.  They can present your options to you with regard to the sale of your property and can help you sell before the bank forecloses on you. 

Q.  Why would I want to avoid foreclosure?
A.  Foreclosure stays on your credit report for 7 years.  This can prevent you from obtaining credit and even keep you from getting a job as many employers are doing credit checks on prospective employees.  It is always advisable to avoid foreclosure whenever possible.  If you sell your property before foreclosure, it reflects as a paid debt on your credit. 

Q.  How do I know which homes are in the process of foreclosure?
A.  This is where a real estate broker can come in to help you.  They have a list of the homes that are in danger of foreclosure and where the bank has already taken action to move towards foreclosure.  They are privy to this information as well as the current market value of the property, the lien amount and what the bank will most likely take in lieu of foreclosure.  Work with a knowledgeable broker who has experience in short sales in order to get the best deal when it comes to purchasing pre-foreclosure real estate. 

Q.  I just want to walk away from my mortgage - can a real estate broker help me?
A.  Yes.  Call a real estate broker with experience in short sales before you walk away from your mortgage.  They can get you a buyer and negotiate a deal with your lender that will get you out of your obligation, allowing you to walk away from this debt.   You can work with a qualified real estate broker that has experience in the short sale industry no matter how much you owe on your property or how far behind you are in your mortgage. 

Q.  The bank has already started foreclosure proceedings, can a short sale still take place?
A.  In most states, you can.  You are better off to seek out the help of a real estate broker who can negotiate a short sale as soon as you begin experiencing difficulty paying your mortgage payments. 

Q.  Who is the ideal candidate for a short sale?
A.  Those who are struggling to pay their mortgages as well as those who owe more on the property than the property is worth are the best candidates for the short sale.  Again, the sooner you contact the short sale agent, the more options you have with regard to getting foreclosure help.