FAQ
Short Sale Information
A real estate short sale can be the perfect solution for many homeowners. A short sale allows you to walk away from their properties without having a foreclosure filed on their credit, and without having to owe the bank anything.
Here is a list of Frequently Asked Questions by many homeowners who are curious about this process:
What is a short sale?
- Bank allows you to sell your home for less than the mortgage balance.
- You will need to meet and follow specific guidelines of that particular Bank.
Is a short sale right for me?
The Following are reasons why many decide to short sell their properties:
- It does not make financial sense to keep the house.
- You are struggling to make your mortgage payments.
- Relocating – you need to sell your home for less then what you owe.
How much is this going to cost me?
- Absolutely nothing to you. The bank will cover all the transaction fees to sell the property.
What is the difference between short selling and foreclosing?
- A foreclosure will negatively affect on your credit score significantly and can seriously affect that person’s ability to obtain financing and credit in the future.
- A short sale will affect the credit, but not nearly as much as a foreclosure. The credit will be negatively affected for approximately 24 months,. By Fannie Mae Guidelines, one should be able to purchase another home after 24 months of having done a short sale.
- With a foreclosure, a lender can assign a judgment against you.
Are there any tax consequences?
- In 2007, The Debt Relief Forgiveness Act and Debt Cancellation was passed. This allows homeowners to short sell their homes up to 1 million dollars with no tax consequences. Be sure to consult your tax professional for more information. You can also visit the IRS website at www.irs.gov.
Will I have to move out immediately if the lender agrees to the short sale?
- No, it can still take three to four months for the short sale to be approved at the bank. You need to prepare yourself and start looking for a new place.
What types of real estate can I short sale?
- It can be your primary residence, a second home or an investment property. They are all treated differently by the banks and the IRS.
Can any Realtor handle a short sale effectively?
- Use full time “REALTOR” that has experienced and is easy to reach when you need them. Short sales involve a lot of negotiating back and forth with the lender and the buyer’s agent coordinate lender’s short sale guidelines to ensure a successful sale.
- You DO NOT need a ”real estate company that passes you a lender relations team or short sale coordinator. You need an experienced Short Sale “REALTOR” who is looking out for your best interest. There is no secrete to a successful short sale closing, except “Knowledge and Hard Work” , which we have a lot of both. Call us today to get started.
Can I short sale if my mortgage payments are current?
- Yes.
Can I short sale if I missed my mortgage payments?
- Yes.
Can I short sale if I already received a foreclosure notice?
- Yes.
Can I short sale if I have already received a modification from my lender?
- Yes.
Can I short sale if I have been denied for a modification?
- Yes.
Can I short sale if I am in the process for a modification?
- Yes.
Why do a lender agree to short sale and take a loss?
- When a lender forecloses on a property, it costs them about $40,000 in additional fees. In addition, the property is left poor condition and rarely sells a property for more than a short sale.
Our experience negotiating with lenders?
- We deal with banks and lenders on Short Sales and we handle the liquation of their REO properties
- We are REALTORS, a licensed California Real Estate Broker. Adhere to the strict Realtor Code of Ethics.
- M&M Real Estate is a licensed corporation running under M&M Mortgage, Inc
The Process
Step #1: We meet meet with you in person to discuss your options.
Step #2: We provide you with a list of required short sale documentation that meets your lenders specific requirements to start-up your file. You can email, fax, mail, or drop off these documents at our office.
Step #3: While you are completing the Short Sale packet for the bank we place your house on the MLS. Interested buyer agents can schedule viewings at your convenience.
Step #4: Once you have accepted and an offer, the offer is submitted to the bank. This process to close this sale usually takes up to around 3+ months. During this time, the agent can help you find a new home.
Step #5: Once the approval is received by the bank, escrow on the property must close, and the process is complete. You do not owe the bank anything, and a foreclosure is not reported on their credit.
We can help: We will Short Sale your home so you can focus on your life.
Call us today (916) 806-3634.
If you are seeking an expert team of full time Short Sale professionals to help you buy or sell you home you can call us at 916 806 3634.
