7 Frequently Asked Questions About Short Sales:
1. What is a short sale?
In a nutshell, a "short-sale" is sale where the seller's lender
agrees to take less than the amount owed on a property.
2. How long does the average short sale take?
All of the short-sale transactions I have sold took at least
three months. Patience is required.
3. Why would a lender agree to a short sale?
It's in the best interest of the lender to have the home sold as
quickly as possible, with the home in salable condition.
Lender's recoup more on short-sales than they would on a
foreclosure. This is because foreclosed properties carry a
greater stigma and they are often used for illegal activities
after the owners have vacated.
4. I have a second mortgage on my home. Does this
make me ineligible for a short sale?
No, but you should retain a professional negotiator to assist
you. It's not an easy process.
5. Once I have an offer on my property, what happens
next?
I will assist you in negotiating the best price and terms. Once
the negotiations are complete, the offer and all supporting
documentation will be packaged and submitted to my
negotiator who will then handle all communications and
negotiations on your behalf with your lender.
6. Will a short sale affect my credit?
Yes. Your tax advisor will be able to address your specific
situation. When done correctly, a short sale will have less
impact on your credit score than a bankruptcy or foreclosure
would.
7. When purchasing a short sale, do I have to pay all of
the escrow fees?
The allocation of costs is a negotiable item in any real estate
transaction. Typically, the buyer and seller each pay their own
fees.
Short Sales can be a win-win situation
for everyone at the table:
- Provided the owner has a
credible hardship (death,
sickness, job loss, divorce, etc)
they may live in their home for
free until the sale closes;
provided they maintain the home
in salable condition.
- The lender will get a much better
price than if it went all the way
through foreclosure.
- The buyer gets a great deal on
a home.
I have a highly skilled short sale
negotiator on my team whom I use
exclusively to negotiate with lenders on
short-sale properties. This means that
short sales I list sell much faster, with
much less of a "hassle factor" to the
seller. I have a 100% closure rate on
short sales I represent
Charlie Mader's Short-Sale Info Page
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