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Short Sale: Frequently Asked Questions

Short Sale: Frequently Asked Questions

What exactly is a “short sale”?
A Short Sale is an alternative to foreclosure that lets you sell your home for less than you owe on your mortgage.

If your mortgage lender agrees, you can “short sale” your home and pay off the entire mortgage balance, including overdue payments, taxes, penalties, condo fees, and legal fees.

A short sale may be a good option for you if:

  • Your home is worth less than what you owe on it
  • You have overdue mortgage payments
  • You are in a hardship situation, such as unemployment or divorce
  • You do not qualify for loan refinancing or loan modification
  • In addition, since short sales usually take from 4-6 months to complete, you may be able to stay in your home longer, improving your financial picture as you do so.

Why would a lender agree to a short sale?
It seems illogical that a bank would accept less than the full amount of the mortgage, but consider this: their only other option is foreclosure, which is quite costly for them. 
Banks are not in the real estate business, and the costs associated with foreclosure often approach 40% of the outstanding balance on the mortgage.
In cases like this, the wise move for the lender would be to consider a short sale.

Is there government money for short sales?
Yes – you may be eligible for the federal Home Affordable Foreclosure Alternatives Program (HAFA). If you qualify for HAFA, you could walk away from your debt and receive up to $3000 to cover relocation.

Is it a do-it-yourself project?
Absolutely not! 
Just as you would not want to build your own jet engine (unless, of course, that was your profession), you would want to leave this type of transaction to the experts.

What will Short Sale Liaison cost me?
It’s that simple. The lender pays a commission as well as any fees related to negotiating and processing the short sale. There is no downside to working with us – it’s a win/win situation.

Read more. Or, contact us directly.

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