How To Sell Your Home For Less Than What You Owe The Bank
(Called a Short Sale)

A Short Sale occurs when...

  • The SALE PRICE is less than the DEBT you must pay the bank

AND

  • The Lender/Bank allows you to sell for less than what you owe

Its crazy but the bank will allow you to sell the home now and take the $100,000 loss!


Why would the bank do this?

  • It costs the bank $50,000 to $75,000 to foreclose and hold a property for future sale
  • For every $100,000 foreclosed = $400,000 reduction in the loans they can make (eg $1,600,000)
  • The Banks lose power to raise money on wall street for every foreclosure

Bottom line: It’s a Win-Win

Does Your Property Qualify?


Q: Do you have any Equity in your property?

  • If YES, you qualify for a Traditional Sale.
  • If NO, you may qualify for a Short Sale.

1st Mortgage only - Best Chance
1st and 2nd Mortgage - Good Chance
Other liens - must be reviewed

  • Unemployment
  • Reduced Income
  • Excessive Obligations
  • Payment Adjustment
  • Unable to Sell
  • Military Service
  • Business Failure
  • Marital Problems
  • Incurable Problems
  • Unable to Rent
  • Serious Illness
  • Job Transfer
  • Death to Principal
  • Fraud
You understand you will not receive any money from the sale of the property.

Additionally, there is no guarantee, however, we will work diligently to close a successful short sale transaction.

Required Documents

  • Current Bank Statements for all of your accounts
  • Current Pay Stubs
  • Last 2 years Tax Returns & W2‘s
  • Personal Financial Statement
  • Hardship Letter
  • Last Mortgage Statement(s)

Benefits to You

A Short Sale greatly reduces the damage to your credit

  • The worst credit hit is foreclosure
  • Stays on credit for 10 years
  • Short Sale Results in late payments with satisfactory settlement of loan(s)
  • No embarrassing public notices and “Foreclosure For Sale” Signs
  • Generally no Deficiency Judgements
  • Can purchase again immediatly if payments are kept current

More Benefits to You

  • IRS income will be excused if this is your primary residence
  • IRS income may be excused for an investment property. (Form 982)
  • No cost to you! Realtor’s commissions, processing fee, and closing costs are paid by the lender
  • Outstanding Property Taxes are paid by the lender at closing

Consequences

  • Possible Deficiency Judgment (this is very uncommon)
  • If not your primary residence, 1099-C may be issued by the lender for difference between amount received and amount owed.
  • Always consult your Accountant or Tax attorney for any questions

Frequently Asked Questions

Q: How long does a Short Sale Take?
A: It may take up to 4 months and longer, and you may remain in the house.

Q: Must I clean up and fix the house?
A: No, but please provide detailed list of any problems or needed repairs.

Q: I’ve been served with Foreclosure papers
A: Notify us immediately, provide all the paperwork and we will assist you.

Q: I put money down when I bought this house...Can I get any money at closing?
A: No. If the lenders agree to accept less than what is owed to them, they will not allow you to benefit monetarily.

When/How do we start? NOW!

Action Steps:
  • Click HERE to begin.
  • Request paperwork
  • Listing Agreement
  • Borrower’s Authorization
  • Homeowner’s/Seller’s Disclosure
  • Provide us with mortgage statements, and HOA coupons (if applicable)
  • Get Required Documents together
  • We will begin processing your Short Sale immediately