SHORT SALE PROCESS
Step 1
Step 1: Discovery Call
Our professional team member will ask you a series of questions to determine if you qualify for a short sale and how we can help you with your short sale.
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1.) What is your hardship that you can't keep up with your mortgage payments?
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2.) How many loans are on the property?
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3.) Did you use these loans to improve the property?
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4.) What is your address?
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5.) Where will you go after you sell your home?
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If we believe you qualify for a short sale we will email you the Short Sale Paperwork Packet which will need to be filled out in its entirety.
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6.) Are there any costs to you the seller?
NO, a Short Sale is FREE, and there is no cost to you. The bank pays all associated fees in a Short Sale to real estate agents / negotiators.
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Step 2
Step 2: Market Analysis
Our team will create a customized market analysis on your home and let you know what it's worth in today's real estate market.
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This number along with your current mortgage(s) due to the bank will help us determine how financially short you will be.
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​If you agree to pursue a Short Sale. We will list your home for sale for the pre-determined price that we agree will help sell your home and be the most beneficial to you and ultimately a price the bank will accept. Your neighbors do not need to know that you are selling your home as a short sale. This can remain completely confidential.
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We will determine with you on how showings to potential buyers will happen and what to expect if we receive offers.
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We will help you every step of the way with your short sale.
Step 3
Step 3: Bank Approval Process
Once we have a solid offer from a qualified buyer the short sale process officially begins with the bank. It's at this time that we submit the entire package to the bank along with the offer.
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The bank could take 30 - 45 days to respond and may come back with stipulations needed to approve the short sale. Our team will work hand in hand with you in providing you feedback as we negotiate the short sale. During this time the impending foreclosure is generally given a moratorium as we negotiate the short sale.
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Once the bank has approved the buyer's offer and the paperwork we submitted on your behalf and all terms have been met they will give us a close of escrow date.
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The Buyer will have a chance to perform their inspections, get an appraisal and order any other necessary inspections or information to complete the sale on their end.
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At the close of escrow day you will go to title to sign the necessary closing documents and the house will be sold to the buyer(s).
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Short Sale
Vs
Foreclosure
Qualify for a new loan
Short Sale 24 mos
A Short Sale is generally noted on credit reports as “settled for less than originally owed” which is more forgiving than a foreclosure. Seller might expect to receive a 1099 at the end of the year for the amount forgiven (Taxable Income). You should consult an Accountant and / or Attorney if you have questions. Every Seller is different. Many Sellers can offset income with their losses. Primary Residences are protected under the 2007 Debt Forgiveness Act by filing Form 982. See www.irs.gov for more detailed information. Homeowners that have gone through a Short Sale may be able to qualify for a new loan after 24 months, with a Foreclosure it’s 7 years! We can help you with your short sale.
HELOC or 2nd loan
Foreclosure 7 years
Purchase Money and Home Equity Line of Credit
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A Purchase Money Loan is also protected from deficiency pursuit by your Lender IF they agree to the Short Sale. How sweet is that? Purchase Money Loans used to purchase your property in CA and AZ are now protected against deficiency pursuit by Lenders (SB931).
If your Second is a HELOC, (Home Equity Line of Credit), it is NOT covered by this protection because that is considered a personal lien. However..we have had great success in negotiating DOWN the amount due on a HEOC so it’s still worth while to Short Sale your home. Just expect to have to contribute something to get that HELOC settled. We can help you with your short sale and your second loans.
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Short Sale Benefits
A Short Sale is far less damaging to your credit report than a Foreclosure.
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You can stay in your home longer until you sell to a buyer.
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No one has to know and everything would remain confidential.
Foreclosure
You will be evicted by the bank from your home if the home forecloses and you still live in it.
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Many foreclosed homes stay vacant for a long period of time with the property unkept and looking abandoned.
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The Bank posts notices on the property.
TESTIMONIALS
“Sandra and her team were amazing! We were so nervous about our neighbors finding out that we couldn't keep the house and we have kids that are in the neighborhood school. What a mess. Anyways, she listened and everything she said worked out perfectly. We sold the house to a cute family and moved on to a great new home not too far away. The short sale process wasn't easy, but Sandra was great at fielding calls, negotiating the short sale with the bank and getting it to close. Our family highly recommends Sandra and her short sale team." Thank you. - C Simmons
“We love our house and it was hard to make the decision to short sale, but financially we couldn't keep up. We feel so much better with where we are now. The bank accepted the short sale and the rest felt like we just sold the house. No one knew but the team and our family we did a short sale." It's been 3 years and no tax implications. Happy we did it." P. Walker