What Is A Short Sale?

A short sale is a type of real estate transaction in which a lender agrees to discount the debt owed in order to prevent foreclosure on a property.  Typically, lenders agree to a short sale because they don't want to go through the hassle and costs of foreclosing on a property.  The lender will release the debt and you will walk away from the home with less damage to your credit rating than if you had gone through foreclosure. 

You don't have to be in default - to have stopped making mortgage payments - before a lender will consider a short sale. A lender may consider a short sale even if you are current on your payments but the value of your home has fallen. You may owe more than the home is worth, so a discounted price might bring the price in line with market value.

If you have fallen behind on your mortgage payments, remember that time is of the essence. 


10 Short Sales & Loan Modification Mistakes That Can Cost You a Fortune

Short sales and loan modifications can seem like a big hassle, but they can become an even bigger hassle if you don't know the mistakes to avoid:

Mistake #1 - Not being thoroughly familiar with the short sale or loan modification process itself.  Make sure to do your research and educate yourself on what steps you need to take in order to make the transaction as smooth as possible.  When you partner up with an experienced realtor, the process becomes much easier.

Mistake #2 - Not knowing what your options are.  Sellers often make the mistake of thinking their only option is letting the house go into foreclosure. It’s important to understand that the banks don’t want to do foreclosures. Banks are in the lending business, not the real estate business.   Many sellers think that short sales or loan modifications are cut-and-dry transactions, but the truth is, ever process is different.  Every person has different circumstances and there are different options available. 

Mistake #3 - Not submitting the proper paperwork to the lender.  Lenders require that all the necessary paperwork is completed before they will even look at a short sale offer or loan modification.  Not having the paperwork could prolong the process. 

Yes, it is possible to walk away from your home without any debt, but you have to take action and get the help you need.  For more infomation about the free loan modification or short sale process, contact us by filling out the form on this page or by calling us right away at 858-342-9292 x.103

Why pay an attorney or loan officer $1000-$5000 when you can get a free loan modification or do a short sale with us. We will show you how, call us today to learn the secret.

Our service is free and will cost you nothing.


Mistake #4 - Not disclosing all the facts.  It's important to adopt a "Honesty is the Best Policy" attitude in this type of situation.  Remember that banks have a great deal of information about you, your income, and your credit.   There’s a pretty good chance they’ll find out if you’re omitting information.  Not providing all the facts to your realtor or lender could be considered fraud and end up costing you in the long run. 

Mistake #5 - Not preparing a hardship letter.  This is an important piece of information that lets the lender know the exact circumstances surrounding your situation.  This letter will help you state your case and give the lender a better picture of what caused you to fall behind on your mortgage payments. 

Mistake #6 - Paying an upfront fee to a loan modification company without checking their credentials. Because of the rise of foreclosures these days, there are many loan modification companies jumping on the bandwagon. Some of these companies are not very qualified or experienced to handle a short sale or loan modification. You need to make sure that you’re dealing with a qualified, reputable people.  A short sale or loan modification should get you out of financial hardship, not put you deeper in the hole.

Mistake #7 - Hiring a mortgage broker rather than a seasoned realtor.  Beware of the mortgage broker who fails to get you a better loan and then offers to sell your home.  Mortgage brokers typically do not know how to market real estate. 

Mistake #8 - Not cooperating with your lender.  This is the easiest way to have your proposal rejected.  It's not the time to let your ego or emotions get the best of you. 

Mistake #9 - Not making the home attractive to potential buyers.  Some homeowners assume since they will not be receiving proceeds from their short sale that they should not continue maintaining their home.A well maintained home in move-in condition will help to generate better offers and in some cases multiple offers. Having solid offers to work with will expedite the sale of your home. A home in poor condition needing repair is more like to go into foreclosure.

Mistake #10 - Trying to negotiate with the lenders on your own.  The people at the banks don't have the time to deal with unsophisticated homeowners who aren't familiar with the short sale process and don't have all the numbers together.  The possibility of losing your home is already stressful enough and dealing with a lender on your own can add even more stress to the situation.  

This is a free service. Any information you give us remains confidential.