Q. What is a short sale?
A. A short sale is a home sale in which the selling price is less than the existing mortgage. This is frequently referred to as being “upside down” on your mortgage. Typically the home owner must either bring cash to the closing to make up the balance, or attempt to negotiate away the difference with a short sale.
Q. Why should I consider a short sale?
A. A short sale will have some impact on your credit rating. However, it is far less than the impact of a foreclosure or bankruptcy. If you cannot afford your mortgage payment, or if you need to move, then there is no reason to suffer the effects of foreclosure or bankruptcy. A short sale will have the smallest impact on your credit, while allowing you to get out of the mortgage.
Q. What are the chances of success with a short sale?
A. My process is very different from that of other agents, and it has been proven to work. The national success rate for short sales is only 17%, while my success rate is 95%. I will be happy to explain how the process works when we meet to discuss your situation.
Q. How long does a short sale take?
A. That depends on a variety of factors. Typically the more loans, liens, back taxes, association dues, or anything that affects the title of your property makes a short sale take longer. But again, my success rate is 95% even with those additional hurdles. I have had a short sale go as fast as three weeks! However, they typically take 6-12 months.
Q. Should I just try to sell my house if I’m behind on mortgage payments and see what happens?
A. That’s the worst thing you could do. You only have four months from the time of foreclosure notice until your home is sold at the foreclosure sale. Once you are foreclosed, you may not have any options. It’s much better to be proactive. Take steps to preserve your credit and plan for a move through the short sale process.
Q. Why not just put my house up for sale and then declare bankruptcy?
A. A bankruptcy stays on your credit report for 10 years. It will severely hinder your ability to get a loan for anything, including a car or another house. A short sale will lower your credit score, but it will not be nearly as much of a red flag to future lenders as a bankruptcy. In most cases a short sale causes a 50-150 point drop in your credit rating. Many people can recover from those lost points in about one year.
Q. What does it cost me to use your services?
A. My services are typically FREE TO YOU. The bank typically pays a commission for all short sales that I negotiate and typically pays the fee. Most of my clients have never had to write a check for my services.
Q. How do I learn more?
A. Call 616-8TOM-SMO or email me to set up an appointment.