Frequently Asked Questions
Short Sale Sellers/Buyers Typically Ask
What is a Short Sale?
A short sale occurs when the bank allows you to sell your home for less than the amount you owe. Most of the time, the lender pays all or most of the closing costs. You get your home sold and avoid foreclosure. A short sale is a privilege granted by the bank. It is not a right.
Is a Short Sale right for me?
Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure. Bottom line, your lender wants to work with you.
Can I simply deed my property to someone else and avoid the hassle?
Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit. Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property.
How can we do a Short Sale with two Loans?
You do a short sale with two loans the same way as a short sale with 3 loans and / or a bunch of liens. Individually negotiate. Typically, the lender in first position will allocate a small percentage of proceeds to junior lienholders. However, borrowers can also be asked to make a seller contribution. In the end, neither lender wants to own another home through foreclosure.
If I do a Short Sale, how much will I have to pay to sell my home?
Nothing. It’s true, in most cases you will pay literally no closing costs if your lender approves the Short Sale. All commissions, title, escrow fees, etc. are paid by the lender as part of the Short Sale approval. Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.
How do I get started on a Short Sale?
It’s easy. If you would like to get prequalified for a Short Sale, we can do it online. If you would prefer to discuss it on the phone, or set an appointment call 630-460-8150. There is no charge to you to get started. It is as simple as contacting us and we will get to work. If you later decide you don't want to do a short sale, that is okay too.
To find out what you should be asking please contact me, Kris Jarczyk at 630-460-8150
or simply fill out the form below and recieve a email from me.