Rhino Group, Inc.
Frequently Asked Questions About Short Sales
What is a Short Sale?
Put quite simply, a short sale occurs when the lender accepts less than is owed on the mortgage.
Why Would Someone Consider a Short Sale?
With the availability of low or no down mortgage loans over the past 5-7 years many buyers purchased homes with little or no money down which means that these homeowners have no equity in the property to cover closing costs when they sell. Couple that with the fact that home values have declined in many areas and folks that have to sell may have to accept less than they owe on their mortgage when they sell. In this scenario, some of the options available are: 1.) Stay in the property and continue to make the current payment. 2.) Modify the payment to a lower, affordable amount - See our Distressed homeowner page for information on available Government programs. 3.) Sell the home for less then owed and write a check for the difference at closing. 4.) Offer to give the lender the deed in lieu of foreclosure. 5.) Let the property go into foreclosure and be subjected to a possible deficiency judgement for the difference plus legal costs. 6.) Get the lender to approve a short sale on the property.
Some homeowners consider "Strategic" short selling just because they are underwater and do not want to wait the unknown time it will take for their property to be worth what they paid/owe on it - if they can prove a hardship and request a short sale they have a chance of the lender approving it.
Short Sale Vs. Foreclosure
A short sale is typically preferable to a foreclosure for all involved. The lender/bank prefers it because it means that they will likely spend less on legal expenses, repairs and costs to re-sell the property and if marketed properly will be able to get the property "off the books" much faster and less expensively than going through the foreclosure process..
For the Seller it typically means less damage of a shorter duration to their credit and they can typically remain in property until is sells. If the seller qualifies for one of the Government programs they will not have to pay back the difference between the loan amount and net proceeds to the lender (deficiency judgement), the lender will pay all of the closing costs including Realtor commission and will even write the selling homeowner a check for up to $3,000 at closing to help with moving expenses.
The Neighborhood also benefits due to the fact that the seller remains in the home and maintains it up until sold and having the property sold instead of vacant/foreclosed may help maintain property values.
Government Programs For Short Sales
The Government implemented a program in April of 2010 that lays out rules to protect the buyer and make it easier to get a short sale approved quickly. It also provides incentives for lenders to approve short sales. Most, but not all lenders are participating in the program, give me a call at 505-891-0900 or email me and I can tell you if you may qualify and if your lender is participating.
Should I Consider a Short Sale?
Every case is different and not all are approved by the lender. It is important that you explore all of the options available to you in order to make an informed decision. We specialize in helping distressed homeowners explore the many options available to them as alternatives to short sales and if needed will help you get through the short sale process. We are just a phone call or an email away and our goal is to help you navigate through the available options - Call me at 505-891-0900 or email me for more information
Do All Realtors Represent Short Sale Listings?
Some Realtors won't touch them as a listing or for their buyers. Some Realtors will take the listing but lack the proper training and knowledge to get them closed. While we are relatively new to the short sale business, I have spent the time and invested the effort to gain the knowledge and stay current on the almost daily changes required to be competitive in the short sale field. I have earned the credentials necessary to serve your needs and get your property sold if you choose to go the short sale route. I am certified by the National Association of Realtors as a Short Sale and Foreclosure Resource and have also earned my Certified Distressed Property Designation From Harris University.
IT IS YOUR BEST INTEREST TO TAKE ACTION AND EXPLORE YOUR OPTIONS AT THE FIRST SIGN OF TROUBLE - WAITING OR IGNORING THE PROBLEM WILL NOT MAKE IT GO AWAY. YOU HAVE TAKEN THE FIRST STEP BY VISITING OUR WEBSITE - NOW PICK UP THE PHONE AND CALL ME AT 505-891-0900 OR EMAIL ME TO EXPLORE YOUR OPTIONS AND DEVISE A STRATEGY - THIS COSTS YOU NOTHING AND WE ARE ANXIOUS TO HELP!