Short Sale Summary

What is a "Short Sale"?

A "Short Sale" occurs when a lender agrees to accept less than the amount owed as an alternative to foreclosure. Short sale is a better option for lenders as they know that if the property goes into foreclosure they are going to most likely take a bigger loss.

How long will it take?

The short sale negotiation process can be rather lengthy. It may take several weeks to several months for an approval. Many lenders will have several layers of bureaucracy, insurers and investors that they will have to maneuver through in order to get a short sale approved. It is important to be patient during this process.

Will I have enough time?

Just starting a short sale will not automatically stop a foreclosure. Many times we can convince a lender to pause the foreclosure process in attempt to negotiate the short sale. While there are no guarantees, it is worth the attempt.

How can I help?

The leading cause of delay or denial of offers to the lender is caused by the seller failing to cooperate and/or deliver the necessary items in a timely fashion. To help us succeed, request a short sale information packet.

Will it save my credit?

In general, if you are not behind on payments or early on your missed payments it will be less of an impact on your credit. A foreclosure is one of the worst items to have on your credit and can remain on your credit report for 7 years. If the lender reports your short sale as "settled for less than owed" or "settled" it may be less impact than foreclosure.

What are some of the benefits?

The primary benefit is a sense of pride that you attempted to work out your situation in the best possible way. There will be less collection calls from the lender and you will have more time in your home to create a better plan for moving. Your home remains vacant for a shorter period of time than it would as a foreclosure, which is important for your neighborhood as the potential for vandalism increases dramatically.

What are some of the challenges?

The possible long timelines associated with short sales and the amount of paperwork the lender requires.