A short sale is when the owner(s) sells the property for less than the amount owed. In a normal purchase and sale transaction (i.e. where the value of the property exceeds the amount of money owed on the home loan) there are generally two principals, i.e. seller and buyer. In a short-sale transaction (i.e. where the value of the property is less than the amount of money owed on the home loan) there are more than two principals, i.e. seller, buyer, seller’s first position lender, seller’s second position lender, etc… In general, in order to have a successful sale, each of the seller’s lenders must remove their mortgage-type instruments (i.e. their liens) from the property. The process of securing an offer and of securing the lender’s permission constitutes the short-sale. To the seller(s), it means you no longer own the property, but you may still owe a balance. It is strongly recommended that you consult a real estate attorney and tax professional to find out all your legal rights and options.

Most banks order one or two Broker Price Opinions (BPO’s) to figure out the current market value of the property. The BPO is a tool used by lenders and mortgage companies to value properties in situations where they believe the expense and delay of an appraisal is not necessary. Real estate brokers are given an order to do a BPO by the lender, Mortgage Company or loss Mitigation Company. The broker does either a drive-by BPO or an internal BPO, in most cases. Often, if the offer is over the BPO amount, the offer will be accepted. If it’s under, they will counter to the BPO value in most cases.

The short sale is an effective tool to use in order to get out of a negative equity situation. In certain instances, lenders or investors make the determination that a short sale benefits far more than sending a homeowner to foreclosure.

A homeowner could definitely benefit in numerous ways by doing a short sale. Some benefits are: relief from the remaining balance, relief from the big house payment, a reduced balance owed to the lender, not as much of a credit hit and so on. Only a real estate attorney and tax professional can tell you what your options are, see the affiliate’s page for referrals.

YES! You definitely want to consult with a real estate attorney and tax professional to find out all of your options. In many instances, and according to the attorneys we have dealt with, the anti-deficiency rights pertain to investors as well; although tax treatment may differ. We highly recommend that you consult with a CPA for tax advice.

Not necessarily. For the most part short sales can be done on all types of loans FHA, VA, HUD or Conventional......Call today with who your lender(s) and we can proceed from there.

Subject to your attorney’s input, it is an option, you need to call today! Based on how many days before the foreclosure date we may be able to get the foreclosure postponed. Truth be told, frequently they can postpone the foreclosure on the sale date. You will need to move fast and start the process today!

The following are options you have at your disposal; foreclosure, loan modification, bankruptcy and a dead-in-lieu. Only a real estate attorney and tax professional can advise you what you’re best option is.

The sellers don’t pay the real estate commission! The seller’s lender will pay the commission as it comes from the proceeds of the buyer’s loan.

Depending on how many lenders, who those lenders are and how long it takes to secure an offer determines the estimated time of the short sale. Usually, the lenders take about 60 days from the date the entire short sale packet is delivered to issue a “lender approval” letter. The lender approval letter normally allows the buyers another 30-45 days to secure financing and close the transaction, for a total of about 90 days or so. Short selling your house takes time, we need to act quickly to make sure we don’t run out of time. Call today!

You may or may not owe taxes, only a real estate and/or tax professional can advise you on your situation! Everyone’s situation is different and you need professional advice. See the Internal Revenue Service website at www.irs.gov for more information. Call today for a referral to an attorney or tax professional near you.

Yes, this happens a lot and is the most common position of people looking to short sell their home. Call today to set up an appointment so we can go over your situation and get the ball rolling. This will give us the opportunity to make sure you put yourself in the best position to protect you and your family.

Yes, however, we will have to explain (with pictures) why your house is selling for less than current market value. In the big picture, this is not a problem, it’s something that is very easy to overcome.

If the borrower has equity, then by definition any sale would not be a “short sale”. A short sale comes into existence when the borrower has “negative” equity, i.e. owes more on the property than it is worth.

Generally, no. You would need to contact an attorney for other options that would release you from the debt.

Yes, however, we would recommend that you hire legal counsel to represent you. By doing so the process should go more smoothly and you would be advised of all your rights. In addition, all liens would need to be negotiated separately. The short sale process may take longer than normal due to any additional liens.

Yes, you can. This also makes the process a bit harder and will most likely extend the approval since each lien would have to be negotiated separately. Call today to find out estimated time frames.