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Short Sale FAQ

“My rate adjusted just as my income changed. My lender wouldn’t help me. John and Dianne spent so much time dealing with my lender. I was able to walk away from my mortgage debt and start fresh. I am grateful for their help and compassion.”
– Carolyn R.

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Can I Short Sale if I am already being foreclosed on?
Yes. However, time is tight. We need to begin the short sale so your lender knows you are trying to avoid foreclosure.

Why would my lender go for a Short Sale?
Cost and convenience. A Foreclosure recovers about 60-80% of value vs. a Short Sale which recovers around 80-90% of value. With a Short Sale the lender is usually better off financially. Besides, the lender does not want your property. They are in the business to lend money not manage real estate.

Who pays the Realtor fees, Attorney costs etc?
Your lender pays these fees plus traditional seller fees and costs. Nobody earns anything unless we successfully complete your short sale. Seems strange but the lender still usually nets more from a Short Sale than they would from a foreclosure.

Can I stay in my house until the sale is completed?
Once under contract it can take several months for lender approval and for the sale to be completed. You can stay up to the day of closing. Though, we suggest you move out the day before.

Will a Short Sale affect my credit?
A short sale will affect the credit but not nearly as much as a foreclosure would. You may be able to purchase again in some instances in as little as 12 months after the short sale.

What work will I have to do?
Not much at all. You will need to gather some basic financial information. From there, we and the Attorneys we work with will handle all the negotiations with your lender. You will need to maintain the property and allow showings whenever a Realtor asks.

Can I do this myself?
Unlikely. You need help and guidance from someone who understands the difficult short sale process. It takes an experienced Short Sale Realtor and an experienced Short Sale Attorney working hand in hand. We have helped many clients sell their home as a Short Sale and we have a successful track record with literally dozens of lenders.

Will this stop the foreclosure process?
Most lenders won’t completely stop the process but many will ‘slow’ the process to give time for the short sale to close. The important thing here is to 1) get it listed as a short sale to show you are trying to sell, 2) Get you hooked up with one of our attorneys to stop your lender from harassing you while we short sale and 3) Get the property under contract so the lender pauses the foreclosure sale.

Ok, sounds good. How do I get going?
It’s Simple. Contact Realstar Realty immediately. From the time we sit down with you to the time your home is on the market – and your stress level drops – can be just a few days from now.

“After a job loss we fell behind on everything. John got the bank off our backs, sold the house & saved our credit. He even found us a new home. If you are behind with your mortgage you need these guys!” – Paul & Carmela M.

Disclaimer: The information provided here is for general information purposes only. Contact legal consul for advice on your specific situation. No information provided here shall be construed as legal or any other advice. No representation is made to the completeness or accuracy of the information. As such, no part of this should be used as a substitute for consultation with a professional legal advisor.