Frequently Asked Questions
What is a short sale request?
A short sale request is when our company asks your mortgage company if they would take a discount on the amount that they are owed on a property.
Why does the short sale process work?
Your mortgage company runs different scenarios on your property to determine what they will get for a return on their investment. Your mortgage company takes the following factors into consideration:
1. The foreclosure process costs money.
2. They may have to pay realtors costs of up to 6% of the selling price of the house.
3. There are holding costs involved i.e. how long will the house stay on the market?
4. They may have to make repairs on the property.
5. They have to carry property insurance.
For these reasons the bank is sometimes willing to take less that what is owed on a property. The question we ask is "Do they want their money now?" or "Do they want the same amount of money six months from now?"
Why should I, the homeowner let you do this? What makes you different than other investors?
The foreclosure process is very fast. It is important that the homeowner be made aware of this fact. Our company specializes in foreclosures, and we are professionals. We know the foreclosure process because it is our business. Obtaining a short sale form the mortgage company is a very time consuming and complicated process.
Can I do this myself?
Yes. However, the process can be complicated, even if you know the right questions to ask. Obtaining a short sale is only part of the process. Finding someone to fund out, or purchase the house at a discounted price within the allotted time span is another part.
What are some of my other alternatives?
Our company is not a tax advisor, an attorney, or a representative of your mortgage company. However, some of you other options are as follows:
1. Sell the property yourself within the allotted time.
2. Hire a realtor to sell the property before the foreclosure sale.
3. Declare bankruptcy. (See a licensed attorney to determine if this is best for you.)
4. Pay off your mortgage.
5. Pay off your back payments.
6. Deed in lieu of Foreclosure.
How will this affect my credit?
Credit history is a very complicated issue. There are many factors that determine your credit rating. What we hope to do is to keep a full foreclosure off of your credit report.
Can I repair my credit?
You can repair your credit. There are many different companies that can help you with this process. The cost ranges from $35.00 to several thousand.
How long does this process take?
The short sale process is very quick. The entire process generally takes less than 30 calendar days. However, there are some variables that may speed up or slow down the process. They are as follows:
1. Some lenders have done much of the preliminary work before we contact them. This work includes an exterior appraisal of the house, and market evaluation. This would speed up the process.
2. Some lenders are very difficult to get in contact with and are not good are returning phone calls. This would slow down the process.
3. Our company will need to gather information as the bank requests it. You will need to provide this information to our company as quickly as possible, or the process will be delayed. The information that we will need to obtain generally includes the following: Bank Statements, Pay Stubbs, Tax Returns, Financial Statement, and a Hardship Letter.
How much money will I receive from this process?
If a mortgage company takes a short sale on your mortgage you will not receive any funds from the sale. The reason is that your bank is going to request a signed HUD statement from the sale. This is a federal form. The mortgage company takes a position that if they are going to take less than what is owed on a property than you should not receive any money from the transaction. If we were to show you receiving no money on the HUD Statement that we provided to the bank, and then we were to give you money, both you and my company would be guilty of fraud.
Do you have to put a sign in my front yard?
Yes. We need to create interest in your property. Signs also make it easier for our investors and buyers to spot the house.
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