Frequently Asked Questions

What is a short sale?

A short sale is when a mortgage lender agrees to accept less than what is owed on a mortgage for the sale of a property. For the bank, a short sale is typically faster and less expensive than a foreclosure. For the home owner, advantages include avoidance of a foreclosure on their credit history.

Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the current foreclosure crisis, they are now more willing to accept short sales than ever before. This is great news for borrowers who are "under-water" or in other words those who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure because of this. They are type of distressed borrower who needs a short sale the most.

How does the short sale process work and how long does it take?

For an overview of the short sale process, please see the Short Sale Overview page.

What are the next steps to get started?

You would fill out the online form, submit some of your information, and a consultant will call you back. He/she will ask you some more questions and answer any questions you might have. If you are comfortable with everything, we will contact either one of our certified realtors or work with your realtor. We will then collect various paperwork for you that is required by the bank. We'll then fax this "short sale package" to the bank and begin the process.

What is your role in the process?

We work with you, your listing agent, and the buyer's agent to get the bank to approve the sales price of your property. We do this by submitting a "short sale package" to the bank. This package consists of various financial information you provide and a purchase contract. We call the banks twice per week to keep the process moving along as quickly and smoothly as possible.

Why should I work with you?

We are the leading authority for short sales and loan modifications, having helped more than 435 families across 16 states. We don't charge the realtor or homeowner but collect our fees from the buyer. The Realtors who work with us find that they make more, work less, and close more of their short-sale listings than using any other approach. So relax and let us handle the often difficult short sales process. We look forward to hearing from you!

What are the tax implications of a short sale?

There are tax implications, but if you are selling your primary residence, there are no taxes due. You have to file Form 7823

How will this affect my credit?

This is difficult to say and varies widely based on your circumstances (how many months behind, your current rating, etc) and who you ask. General consensus is that a short sale reduces your credit rating by 75-150 points whereas a foreclosure decreases it between 150-250 points.

How will I know what's going on?

Because it's common for the bank to take 2-4 months to make a decision, the wait can be a real challenge. We address this by communicating frequently with the realtor and the homeowner to keep them apprised of what's going. We typically will call the bank 2-4 times per week to keep things moving forward as quickly as possible.

What should I do while we wait for the bank's approval?

You should do whatever is necessary to help the realtor sell the property. This may include keeping the utilities on, cleaning, making minor repairs, and even moving out of the property. You should also inform us when you receive any letters or phone calls from your lenders.

Can I get cash back at closing?

No, this is not allowed by the bank.

Do I need to pay any commissions or closing costs?

No, you do not need to pay anything at closing.

What will this cost me?

We charge you a processing fee of $500. If we are unsuccessful in getting the bank to accept a buyer's offer we will refund you this fee.