Understanding a Short Sale: Some Answers to Frequently Asked Questions
- Experienced mortgage payment challenges?
- Already explored possible options?
- Received foreclosure notices on your home?
If you can answer "yes" to any of these questions, I encourage you to call The Garduno Team to learn more about how a short sale could be a potential option you should consider.
Q: What is a Short Sale?
A: A Short Sale is a program that allows the homeowner to sell the home for less than the amount owed on the mortgage.
Q: How can I be considered for a Short Sale?
A: You may be eligible for a short sale if you have a involuntary hardship and can no longer afford your monthly payments on your mortgage, or you're unable to sell your home for the full amount owed on our mortgage. Also, you might be eligible for a seller incentive.
Q: How can I benefit from a Short Sale?
A: You avoid a foreclosure sale. You can live in your home until the new owner closes escrow, giving you time to make other living arrangements. A foreclosure sale may be postponed once a written, signed offer is received and approved by your lending bank in writing. Also, you might be eligible for seller incentive.
Q: How does a Short Sale work?
A: Once you contact The Garduno Team to discuss a Short Sale, our next steps will be:
- Collect your financial information, and compose a hardship letter explaining your situation and why you are unable to pay your mortgage
- We will submit your information to your lending bank and they will determine if your loan qualifies for a Short Sale.
- Once we receive an approval from your lending bank, we will work closely with you and your lending bank to work through all the details and steps to sel your home at an agreed upon price so you can avoid a foreclosure.
Q: What other details about a Short Sale should I be aware of?
A: Here are a few:
- Be sure to speak with your tax and legal advisor about the implications of a short sale and deficiency balance.
- Before you secure a buyer, understand the buyer may not be anyone you have a close relationship with, including family or friends.
- A Short Sale transaction can take place as late as 5 days prior to a foreclosure sale.
Q: How does The Garduno Team get paid?
A: We will negotiate directly with your Lender for all Real Estate related commissions. Our Short Sale services are completely free to our clients.
Q: How long will the Short Sale process take?
A: The Short Sale process can be a lengthy one. It can take several weeks to months before the Lender and homeowner can agree on acceptable terms. The Garduno Team will keep you informed of the progress throughout the entire transaction.
Q: Can I stay in my house?
A: The purpose of a Short Sale is to get the property sold, so you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. It is a lengthy process and you can stay in the home until the sale is complete.
Q: My home is going into foreclosure, will I have enough time to complete a Short Sale?
Starting a Short Sale will not automatically stop the lender from starting the foreclosure process. However, we have successfully convinced lenders to postpone a foreclosure while we negotiate a Short Sale. While there are no guarantees, we will do everything that we can to get your home sold before the lender follows through with their foreclosure.