Short sale benefits to Seller over foreclosure:

• Looks better on Seller’s credit report than foreclosure; usually shows loan as paid but at less than full value
• Seller avoids eviction and has notice, and sometimes more time depending on the Buyer, for moving out of house
• If specifically included in the short sale agreement, Seller will not have the threat of a lawsuit for a deficiency action after the foreclosure sale

Baseline requirements for shortsale:

• Little to no equity in the property
• Three months missed payments or expecting to miss payments soon
• No assets (fancy car paid for, large 401K, equity in another property, etc.)
• Cooperative Buyer (we have listings of people looking to purchase properties) and Seller willing to make complete and honest financial disclosure

Serious Notation: The true concept of a short sale is that the seller does not have the assets, money or other resources to make the payment nor to make up the shortfall on a sale on their own. This requires full financial disclosure. If the Seller is truly broke, all other factors considered, the lender may allow the short sale.

Caution: Remember that for any and all information provided: THE LENDER IS ATTEMPTING TO COLLECT A DEBT AND ANY INFORMATION OBTAINED CAN BE USED FOR THAT PURPOSE BY THE LENDER. The risk of exposure would be if the lender does find additional assets and the short sale is denied. The lender’s knowledge of the Seller’s financial situation will provide a significantly easier manner of locating assets to pursue seller for a post-foreclosure deficiency. This is a very clear reason to consider the seller’s full financial position prior to submitting the short sale request.

Facilitator Role: A facilitator is someone who skillfully helps a group of people understand their common objectives and plan to achieve them without personally taking any side of the argument. As quoted from Jerry Maguire: “We are the process…. you are the content.” In this case, the facilitator is to collect all of the information from all parties and submit it to the lenders. The facilitator must then follow up on any further lender requests and try to get the deal approved.

Remember, a short sale submission can take about 30 days for approval and, most often (try to be the exception), foreclosure proceedings are not suspended!

Don’t waste your time: For one or many reasons, some Sellers are not candidates for a short sale. If you are not, we will tell you directly and give any other options to assist you in your situation.