Q&A

Q: What is a short sale?
A: A short sale is simply where your lender accepts less than what you owe as payment in full at closing. Lenders have been accepting short sales for years. And, if you’re upside down and need to sell, you may qualify to short sell your house. Think of it like this… Let’s say you let someone borrow $100 and before they could pay you back they lost their job and couldn’t pay you back. Then, one day they called you up and said, “Listen, I don’t have the $100, but I do have $80. Would you accept this?” Of course you would. Why? Because it would be better to get the $80 back than nothing at all, right? This is a short sale. Lenders accept short sales because, most times, they make more sense than getting the house back by a foreclosure. Right now, more than ever, banks just want to minimize their loss. If they can allow a short sale and avoid foreclosing on your house, they will.

Q: What can I expect after I fill out your contact form?
A: Once you fill out our contact form, we will call you and make sure your house qualifies for a short sale. We’ll ask you some questions to establish; your mortgage balances, how many months behind you are, who your lender is, what repairs, if any, will be needed. We will then research your property and pull comparable sales data from your surrounding area to find your property’s value. If your house qualifies, we can write up a contract and start negotiating with your lender to accept a short sale settlement so that we can purchase your house.

Q: Do you charge any fees?
A: No. We buy your house just like in a normal real estate transaction, but when we close your lender gives us a discount and writes off your bad debt. There are no up front fees and no fees added when we close. Our service is free to homeowners who need to short sell their house. There is no obligation to see if your house qualifies.

Q: Can you give me an example of a good short sale candidate?
A: Sure. Let’s say Sally bought a house a few years ago for $200,000 and took out an interest only mortgage for $190,000. Her house is now worth $155,000 and she still owes $190,000. Sally lost her job and can no longer afford to make her house payment and starts to get behind on her mortgage, but she can’t sell because she owes more than her house is worth. She lists her home “for sale” trying to simply break even, selling for what she owes. Unfortunately, her house sits on the market and inches closer and closer to a foreclosure auction.

She could call us, we could put a contract on her house and negotiate a short sale on her behalf with the lender. We would buy her house at a discount based on what her house is worth now. We can even suspend the foreclosure sale if there is a scheduled date. When we close, the lender writes off the bad debt and Sally moves on with her life.

Q: Do you buy short sale properties in my area?
A: We buy properties all across the country. We are based in Atlanta, GA, but we can we have affiliate members in many major metropolitan cities. No matter where you are located, we will consider buying your property.

Q: Why in the world would my lender accept less than what I owe?
A: Banks do not want to get your house back. Let me repeat that, banks do not want to get your house back. When a bank takes a house back in foreclosure, it is said that it costs them anywhere from $50,000 to $75,000. Your lender is interested in minimizing their loss. If a short sale is less of a loss than a projected loss from a foreclosure, your lender may accept a short sale, it’s really that simple.

Q: Will my lender forgive the balance owed when short selling my house?
A: This is something that our short sale experts will work on. During the short sale process, we will request that your lender forgive the balance owed and not pursue you for the deficiency, and we get it in writing. If the lender insists you owe on the balance forgiven for a short sale, it will then be up to you to proceed.

Q: Are there any tax consequences after a short sale?
A: You will want to discuss this with the IRS or your accountant. Due to new tax rules seen here, Mortgage Forgiveness Debt Relief Act, your forgiven debt will not be recognized as a taxable gain.

Q: What is the difference between listing my house with an agent or selling my house to you?
A: Two distinct differences. We buy your house. Your lender will not negotiate or agree on a short sale price without a written contract. You can list your house, but you will need to wait for a buyer and that could take months. When you call us, we can put a contract on your house immediately and we start negotiating with your lender right away. Plus, we have professional loss mitigation experts with many years of experience negotiating short sales who work directly with your lender. Finding the buyer is half the battle, getting your bank to agree to accept a short sale is another. Our short sale experts have a history of successful short sale transactions and connections with a multitude of lenders to make it happen quickly.

Q: Is there any guarantee that my lender will accept a short sale?
A: We can’t make any guarantees that your lender will accept a short sale offer from us. All lenders are different and every situation is different.

Q: How long is the short sale process?
A: The short sale process is entirely in your lenders hands. Our short sale negotiators work diligently to get our offers accepted, but the short sale process can still take up to 6 months. Some lenders can have a response to us within 30 days while others take longer.

Q: My house is in perfect condition, will my lender still accept a short sale?
A: Whether your house needs repairs or is in perfect condition, your lender still may accept a short sale offer. We buy smaller homes in subdivisions to luxury estates on acreage. A short sale is dependent upon what you your property’s current value is, not the condition or even what you owe.

Q: How will my credit be affected? Short sale vs. Foreclosure
A: If you’re visiting our website, chances are you’ve already had some unfortunate circumstances that may be affecting your credit. However, a foreclosure could affect your FICO score as much as 300 points while a short sale might affect your score 75-100 points. Though both a short sale or a foreclosure are not marks you’d like to have on your credit report, generally speaking, a short sale may be better in the long run. While those with a foreclosure may not be able to buy another home for 2-5 years, families with a short sale and good credit may be able to purchase a home in 12-18 months.

Q: I’m a real estate agent with short sale clients, can I call you?
A: Of course. We work with agents every day. If you have a client who needs to short sell, we can put a contract on their house and you get your commission as usual when we close. The lender will pay your real estate commission and you don’t even have to talk to the lender. We handle everything.

Q: I’m ready to find out if my house qualifies, what do I need to do?
A: Simple. Click on the big red button below and fill out our contact form. We will call you back promptly. If your house qualifies, we can put a contract on your house within 24 hours.