Short Sale Frequently Asked Questions
What is a Short Sale?
A Short Sale is when a lender agrees to accept less than is owed and close out the mortgage(s) on a property. Example: Sellers owe $650,000 on a house, but current market value is $500,000. StoneCrest Real Estate Short Sale Experts negotiate an agreement with the bank to accept an offer at the current market value of $500,000, and the sellers are let out of the entire debt at no cost.
Can a property be sold “as-is”?
A property can be sold in any condition. We usually advise our clients not to put any more money into repairs or improvements on the property since it will not affect the process, but please contact us for specific questions about your property.
How long does a Short Sale take?
Usually a Short Sale will take from three to six months from start to finish, although sometimes it may take a little longer if there are multiple lenders involved or other complications. In most cases the current residents – owners or tenants – can remain in the property throughout the process until the sale is completed.
Will a Short Sale cover a second mortgage or HELOC?
A Short Sale eliminates all mortgages and liens on a property – home equity lines of credit (HELOC), second mortgages, unpaid property taxes, tax liens, etc. Because each and every lienholder must agree to allow the short sale to be completed, it is critical that all negotiations be done by experienced specialists.
What is a HAFA Short Sale?
HAFA (Home Affordable Foreclosure Alternatives) is a Federal government Short Sale program that some banks are required to offer as a possible option to distressed homeowners. In most cases it is harder to qualify for a HAFA sale than a standard short sale, but with nearly all lenders if a seller does not qualify for HAFA their short sale request is automatically moved to a standard short sale review. Here is the official HAFA Program website. StoneCrest Real Estate Short Sale Experts handle both HAFA and non-HAFA short sales, and can answer questions about the different programs available from your lender.
Should we do a Short Sale, or foreclosure?
Whether you should consider foreclosure may depend on the financial and legal consequences of a foreclosure. You should always, without fail, get legal and tax advice because real estate agents, unless licensed to practice law, cannot provide legal or tax advice. In nearly all situations a foreclosure is the least favorable option for the distressed homeowner.
Does the seller have to pay anything?
For our clients, almost never. Investor owners selling rental properties are sometimes asked to pay closing costs – transfer taxes, fees etc. – but personal residences are nearly always sold without any seller contribution.
Call us at 858-381-0365 for a free, no obligation, over-the-phone consultation about your unique situation or complete the form below and you will be contacted when it’s a convenient time to speak.
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