“Short Sale Questions?”

If you are facing foreclosure and/or enduring financial hardship; you may be able to sell your property for less than you owe. This is known as a short sale. Convince your lenders to agree to a payment in full with no further debt obligation. Many lenders agree to a short sale because they’re set to receive substantially more of the loan balance this route; as opposed to selling the property following a foreclosure. This will also aid you (our homeowner) in maintaining better credit status as compared to if you had gone through foreclosure.

A “Short Sale” or “negotiated settlement” or “short pay” occurs when a Lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure.  If the property is worth less than the amount owed on the loan, then even if the Lender forecloses and takes back the property, they know they are going to take a loss.  We can often convince a Lender that they will “do better” if they take less than what is owed now rather than taking the property back by foreclosure and trying to sell it later.

The Short Sale negotiation process is a lengthy one.  It may take several weeks or more likely several months to get an approval.  Many Lenders have several layers of bureaucracy, insurers, and investors that we will have to maneuver through in order to get the Short Sale approved.  So it is important to be patient during this long process.

Maybe, maybe not.  Just starting a Short Sale does not automatically stop a foreclosure.  However, many times we can convince a Lender to stop the foreclosure to let us attempt to negotiate the Short Sale.  So, while there are no guarantees, it is in your best interest to try the Short Sale.

The key word in “Short Sale” is sale.  The purpose of a Short Sale is to get the property sold.  This is not a program that can stop foreclosure and allow you to keep the house indefinitely.  It will be easier to sell the house if it is vacant, so you should make plans to move as soon as possible.

You don’t.  We cannot, have not, and will not make any promises to you that the Lender will accept a Short Sale.  Once you missed a payment, the Lender is in charge and can proceed to foreclosure if they want to.  But we know they do not want to and we are very good at presenting alternatives to the Lender that they often prefer to accept rather than foreclose.  We are very good at what we do, but NO PROMISES or GUARANTEES are being made as to whether or not the Lender will accept a Short Sale – they may or may not.

NO.  A universal requirement of Lenders granting a Short Sale is that the borrower will not get any proceeds from the sale of the property.  The Lender is going to take a loss on your loan – they are not going to let you get any money.

Your house will likely go to foreclosure.  A Short Sale is something we try after you have exhausted your other options.

A Release is where the Lender may offer to “release” its security interest against the property in exchange for less than the amount of the note.  However, the remaining debt on the property is still not satisfied.  A Satisfaction is where the Lender agrees to accept less than you owe on the balance of your mortgage as a complete and final “satisfaction” of the debt and the mortgage lien on your property.


Advantages of a Satisfaction:  Your note obligation and mortgage encumbering the property are both satisfied for less than what you owe.  When your property is sold, the debt is paid off completely.


Disadvantages of a Release:  Since the remaining debt on the property (sometimes called a “deficiency”) still exists, you may have tax consequences and receive a 1099-S form from the Lender reflecting the amount of debt forgiven.  You may then have to pay taxes on this amount and although there are exceptions, you are urged to consult with a tax advisor regarding your options.  Also know that the Lender is not obligated to provide you with a 1099-S for the debt forgiveness income and won’t be penalized for failing to do so.  It is at the sole discretion of the Lender whether they choose to give this to you or not.

We are experts in helping homeowners facing financial difficulties. If you are searching for relief from your mortgage debt and an excellent way to rebuild your credit? Selling your home through a Short Sale is a great way to preserve your financial future. We will be here to help you through the process every step of the way with our expansive knowledge and steadfast determination. Before you know it you’ll be right back on track to better financial status! We have assisted multitudes of homeowners who successfully walked away from $100,000 to over $800,000 in debt with a 90% success rate! With these predicaments the sooner we get started the better. Contact Abbate Realty Group today!

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