FAQ (Frequenty Asked Questions)
Q: What is a short sale?
A: A “short sale” occurs when a mortgage lender or lenders agree to accept less than the total amount of money they are owed on a piece of real estate in order to facilitate the sale of that property.
This is generally accomplished when the owners of the property have fallen behind on their monthly mortgage payments and a foreclosure of the property is looming.
A “short sale” allows the property to be sold and the lender to recoup some of its losses. It also allows the homeowner or property owner to sell the property and avoid having a full foreclosure further ruin their credit and potentially severely impede their economic future for years to come.
Q: What qualifies a property for a short sale?
A: The owners of the property, in most cases, must be at least thirty (30) days behind on their mortgage payments and facing a potential foreclosure action.
Further, the owners generally must show a financial inability to get caught up with their mortgage payments as well as a further inability to then continue timely payments in the foreseeable future. A recent hardship, such as a loss of employment, may favorably play into the analysis.
The property value on the open market today must also be less than what the owners owe their mortgage lenders.
Q: Do I need to take my lenders calls if I am in default?
The short video below is about how to handle the large number of calls from your lender.