Click on the settlement letters below to read about successful pre-approved short sales:
1) What does it mean to short sale a home?
When a property is sold for more than what is owed on the loan. For example if a home was purchased for 200,000 but is now only worth 100,000, it can only be sold for what market value is. Selling this home for 100,000 would be a short sale.
2) Can anyone Short Sale his or her home?
There is nothing that says one can't attempt to short sale their home. However since it is ultimately up to the lender or investor to agree to the short sale, there should be financial hardships or other circumstances that would or may result in Foreclosure if a short sale was denied.
3) Why is my lender requiring financial statement and a hardship letter for me to be a candidate for short sale?
Each lender and or investor is different and will have different requirements. Some lenders may want to see if it is feasible to offer a loan modification. Different lenders have been known to issue loan balance reductions and lower the homeowner interest rate to keep them in the homes. For his to happen the lender has to be done, documents (financial statements, letters, and credit reports are supporting documents of the true hardship.
4) Do I have to pay any real estate commissions or fees to short sale my home?
No. An experienced realtor will offer the property for Sale AS IS. and once the lender agrees to the short sale all fees and closing cost are part of the settlement letter. Keep in mind you will not get one penny from the sale.
5) What is a settlement letter?
It is a very important document that is issued by the lender once they have agreed to the short sale. It will usually outline the terms of the short sale. (See Link at bottom.)
6) Will I have to pay taxes on difference of what my home sold for and what the lender accepted as a short sale?
Depending on the type of property, owner, investment, monies used for down payment. You may or may not be required to pay taxes on the difference. You should contact an accountant for this professional advice.
7) Can anyone buy a short sale?
Yes, as long as the buyer is not related to the seller. (This is known as an arms length transaction.)
8) If I have already received a foreclosure notice is there still time to short sale my home?
Yes, until the date of trustees sale (Selling your home on the courthouse steps for non payments over 90 days). You are the legal owner and can attempt to short sale in lieu of foreclosure.
9) Can I short sale my home if I have filled bankruptcy?
Good question! It is not recommended that you attempt to short sale a home after or during the process of filling a BK. Usually the home will be included in the BK, and will further delay if not prohibit the short sale. Everyone's situation is different and each must do what is best for their situation. We strongly suggest consulting an attorney and tax professional for more advice on this topic.
10) How long does it take to short sale a home?
We've completed short sales in as little as 45 days to as long as 120 days.However if the lender is a participant of the Fannie Mae Backed Loan Exit Option Program, we can close short sale transactions in as little as 30 days.
11) What lenders are currently participating?
Citi Mortgage and Bank of America are currently the only two that we know of that are participants. Others may be joining soon or may already be in the process.
For more information or a free consultation call 866-371-0739 Ext 8 or simply fill out the information along the right side of the page and one off our professionals will contact you within 24 hours.
Helpful Links: www.hometelos.com