- What is a short sale?
- What is a loan modification?
- Do I have to be behind on my payments?
- How much will this cost me?
- What will be reported on my credit?
- Can the seller make a profit on a short sale?
- Can the lender seek the difference from me?
- If a seller is in bankruptcy, will that effect the short sale of the property?
- How late in the pre-forclosure process can you start a short sale?
- Why should I have Forclosure Prevention Pros negotiate my short sale?
- Can I do a Short Sale and have the property leased back to me?
What is a short sale?
A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly forclosure, and the owner is able to pay off the loan for less than what is owed.
What is a loan modification?
Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
Do I have to be behind on my payments?
No! You can be current with your payments , however we must prove to the lender you are facing hardship and will not be able to keep up.
How much will this cost me?
Our services to you are free! The only thing we ask is for your cooperation thoughout the process!
What will be reported on my credit?
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 you will still have your normal mortgage lates reported. It is certainly more advantageous to have your report show as "Piad In Full" with a few mortgage lates than to have a foreclosure or bankruptcy on the credit report.
Can the seller make a profit on a short sale?
By the nature of the transaction, the seller is not going to make a profit on the short sale. They may have extracted equity from a previous refinance of the home, but their current loan balance will be higher than the selling price of the home. Sometimes we are able to negotiate the sale of some of the your personal property under a seperate Bill of Sale (appliances, furniture etc.).
Can the lender seek the difference from me?
Yes! The lender can seek a deficiency judgement, and mostlikly will, however we me make every attemp to make sure that in part of our negoiating the lender is paid in full and can not come back on the homeowner for that dificiency amount.
If a seller is in bankruptcy, will that effect 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.
How late in the pre-forclosure process can you start a short sale?
Depending on individual state law and regulations, a foreclosure can proceed as quickly as 35 days from the date the notice to the borrower is filed. For that reason, time is of the essence and you should allow a window of no less than 45 days to allow a lender approved a short sale. In some states there is what called a redemtion period. This period is the time frame that you still have to either pay your mortgage note off in full or complete a short sale. The more time we have to work on your file the better success rate we are going to have to complete a short sale.
Why should I have Forclosure Prevention Pros negotiate my short sale?
If you have a servere medical condition, are you going to a family doctor or a specialist? Though there many reasons to use FPP to handle your short sale. One of the biggest reasons is we are abolustely free! Rememeber you as the homeowner can not financially benefit from your own short sale, so why not have a company that specializes in nothing but shorts sales at no cost to you? It can be very frustrating trying to negotiate on your own with your lender, rememeber they are first and formost trying to collect a debt. There is a tremendous amount of time, energy, paperwork, and follow up that goes into negotiating a successful short sale, not to mention the amount of coordination that is involved to make the transaction happen. FPP is a company that specializes in nothing but the short sale process. Forclosure Prevention team takes all the frustration off of your plate so you can focus on your day to day tasks and future.