Short sale and foreclosures properties for sale. 1-718-927-3500

The Basic

1. What is a real estate short sale?

A real estate short sale is sale of a property,with the authorization of the creditors, for less than what is owed on it. The mortgagee would accept less than the loan amount in order to avoid an expensive foreclosure proceeding. It simply means that someone is willing to settle for less than what they originally anticipated.

It's part of business. Lenders are more than happy to discuss resolution of aged debt. Their business is to lend capital, not dispose of foreclosed assets.

2. How late in the pre-foreclosure process can you start a short sale?

it's varies from lender to lender depending on the lender regulations, typically short sale process will take between 2 month to more then a year to be approved. You can start a short sale in any point of the foreclosure process, Since this process is very long u should start as soon as possible.

3. What documents are necessary to proceed with a short sale?

The individual documents necessary to proceed with the short sale will depend on the lender. Typically the lender will require hardship letter detailing the circumstances behind the short sale. A signed, valid contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender. The broker listing agreement that shows that the house is for sale .Financial condition of the seller, i.e.; pay check stubs, bank statements, a personal financial statement and monthly budget assessment, tax returns.

4. Will a lender allow the seller to make a profit on a short sale?

Since the lender is agreeing to accept less then what is owed on it, he want allow for the seller to make a profit on the short sale.

5. If a seller is in bankruptcy, will that affect the short sale of the property?

Absolutely, as most lender would not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. Negotiating a short sale between the parties is considered a collection activity and such a negotiation is prohibited in bankruptcy.

6.Will the seller's credit rating be affected by a short sale on their property?

While it is up to the individual lender to decide what to report, what often happens is the loan will report as "paid" on their credit report? While that good news the bad news is that there will likely be a reference that says "settled for less than originally owed" or something similar. It is certainly more advantageous to have the short sale referenced than to have a foreclosure on their credit report.