Is a Short Sale Right For Me?

A short sale (sometimes called a pre-foreclosure) is when you sell your home for less than the remaining balance on your mortgage. Depending on your situation, you may be required to make a financial contribution to receive a short sale. This does allow you to pay off part or all of your mortgage and avoid true foreclosure.

Is a short sale right for me? Yes, if:
•    You are ineligible to refinance or modify your mortgage
•    You are facing a long-term hardship
•    You are behind on your mortgage payments
•    Your home is worth less than what you owe
•    You have not been able to sell your home at a price that covers what you still owe on your mortgage
•    You can no longer afford your home

What are the benefits of a short sale?
•    Eliminate or reduce your mortgage debt
•    Avoid the negative impact of foreclosure
•    May be eligible for up to $3k in relocation assistance in some cases
•    Start repairing your credit sooner than if you went through a foreclosure
•    May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)

What is the Process?
Your mortgage company doesn’t want you to foreclose and in most cases are willing to work with you. If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with a real estate agent to market and sell your home. However, your mortgage company will also be working with you and your real estate agent every step of the way to:
•    set the sale price (based on current market value),
•    collect financial information and negotiate with other lien holders (i.e., your second mortgage company) if applicable,
•    review acceptable offers,
•    agree to the terms of the sale once a buyer is in place, and
•    work with the buyer’s real estate agent and mortgage lender to finalize the sale.
•    In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.
•    A short sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. 

What Do I Do?    
•    Gather your basic loan and financial information (mortgage statements, monthly loan and/or credit card payments, and income details) and call your mortgage company.
•    Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, the reasons why this is a long-term problem and inform your mortgage company that you want to sell your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
•    Contact a licensed real estate agent—Tell them you are interested in listing your home for sale (if you have not already done so).
If you would like to contact me today to find out if this option is right for you or how to move forward, please know all information you share with me is confidential, and I will do my utmost to help you get through this situation, and hopefully give you some peace of mind.

*Information courtesy of