Short Sale Introduction
Short Sales are a way for the Seller of a property to sell the home for less than the current mortgage value owed. In this economy, it is sometimes the Seller's last option other than foreclosure.
We recommend that you seek advise from qualified finance, tax and legal professionals before making your decision on how to proceed. Another great resource is www.hud.gov/foreclosure to learn about new programs set up by the administration to help you avoid foreclosure.
During a short sale, the Seller's Lender will decide if they are willing to accept a lessor amount to close out the current loan on the property. This will affect your credit score. Your lender may offer total forgiveness but they will usually expect a new note created for the amount "short" or can require you to sell assets to bring additional cash to the close of escrow. It is not a guaranteed process as the lender may have to take a loss in order to allow the sale of the property to proceed. The lender will weigh the short sale loss against the loss that might occur if the property were to be foreclosed on.
Short sales require the preparation of a "packet" of supporting information to create a hardship case, a lot of contact with your lender(s) and constant follow-up. After you provide us with the initial packet of financial information - most of the follow-up and contact with the bank will be handled by the Kleefisch Real Estate Team. We have been through the process before, but each lender handles it differently. Some lenders are easier to work with than others. While each lender processes differently, the basics are the same. The short sale process can take a LONG time and a lot of effort. Once a contract is negotiated on your home, the time frame depends on your lender. We have seen short sale approvals as fast as 2 weeks but typically between 3-6 months.
The Kleefisch Real Estate Team has the expertise to manage the process and has been certified by the National Association of Realtors as a Short Sale Foreclosure Resource. The process is slow and can take as long as 6 months, however in the long run if you are able to short sale your home it is better than a foreclosure listed on your credit report.