Short Sales Explained & FAQ
What does it cost?
Our services are always 100% free with no charge to you. The banks will pay our commissions and most all closing costs. You may be asked to contribute funds to help offset the deficiency but we have been very successful avoiding this.What are valid hardships?
The bank looks first and foremost at whether or not you qualify as having a genuine hardship. There are many different hardships with just a few being;- Job loss or loss of income
- Divorce
- Medical
- Relocated due to job. Must move for a valid reason.
- Rates have increased as well as your other debts
Do I have to be behind on payments?
No. We can never recommend you miss payments if you are behind the process usually takes on a different priority for the bank.Can loans have recourse?
Yes. Depending on what type of loan you have there is potential recourse in some loans. We always recommend you seek legal counsel for further details and advice.What are potential tax ramifications?
Most banks will issue you a 1099C and your accountant may be able to file an IRS Form 982. There are separate State and Federal Guidelines so we always recommend you seek professional Tax advice from a licensed professional tax advisor for further details and advice.What are potential Credit ramifications?
The most lethal affect on your credit can be a foreclosure as well as missing payments. Short Sales are usually reported as a "settled debt for less than owed" or "paid in full for less than owed". This derogatory remark usually will stay on your credit for 1-2 years but may vary. Foreclosures are known to stay on your credit from 6-7 years.Is a short sale any better than a foreclosure?
A foreclosure and a short sale can have dramatically different impacts in areas such as your credit score, credit history, employment, future loan availability, security clearance, etc.. Compare and contrast.
