Short Sales FAQs
What is a short sale?
A short sale is a proceeding in which a property is sold for less than the balance owed to the bank, and the bank agrees to essentially give a financially strained mortgagor a discount on the mortgage balance.
Why choose a short sale versus a foreclosure?
In general, a short sale is less harmful to your credit rating than a foreclosure. Short sales usually take less time than foreclosures. There is also a possibility that the lender will provide financial relocation assistance.
How can I start the short sale process?
The first step in the short sale process is talking with a realtor in order to determine your home’s fair market value at the current time. You’ll then list your home at a much lower price than the current fair market value in order to sell as quickly as possible. Veitengruber Law has created close relationships with multiple realtors strong in short sale negotiations.
Will my short sale offer be accepted by the bank?
Banks need to see that you are suffering significant financial difficulties and that you simply cannot afford your home any longer. By providing the lender with a detailed hardship letter explaining why your income no longer allows you to afford your mortgage (include life circumstances such as illness, disability, divorce, etc.), you have a better chance of having your short sale offer accepted.
How long does the short sale process take?
A common misconception is that a short sale is a “short” process. In fact, it is termed a short sale because the sale price will fall “short” of the amount owed on the current mortgage, and has nothing to do with how long the process will take. Unfortunately, at this time, there is no legal limit on how long a short sale can take. Because short sales require so much paperwork, the process can often take many months, or in some cases, years.
How will a short sale affect my credit score?
By selling your home in a short sale, you have essentially caused your lender to suffer a financial loss. Due to this, a short sale will be listed on your credit report for seven to 10 years. It typically does not lower your credit score as much as a foreclosure, however.
Can I make a profit from a short sale?
No. The purpose of a short sale is to get out from under an underwater home that you can no longer afford.
Can I proceed with a short sale if I am filing for bankruptcy?
Yes. Bankruptcy will prevent or delay sheriff sale and may allow a short sale to proceed.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.