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SHORT SALE INFORMATION FOR HOME OWNERS IN DISTRESS in Maryland and Northern Virginia

That's usually the choice of home owners who MUST sell but own more than the market value of their home.

WHAT'S THE DIFFERENCE??

A short sale is a home listed for sale where the lender agrees to take less than the home owner owes.

It's that simple. That doesn't mean that Short Sale is a simple transaction. Mortgage companies may agree to accept less than they are owed to permit the sale of a home. However, they will have certain qualifying requirements and procedures that MUST be followed to gain the mortgage company's APPROVAL of a Short Sale transaction and disposition of a property.

WHAT ARE THE HOME OWNER CHOICES?? Once a home owner has exhausted alternatives to Short Sale or Foreclosure, such as refinancing, selling and bringing cash to closing, lender workout, forbearance, deed in lieu of foreclosure, walking away, THE SHORT SALE is often the best alternative FOR THE HOME OWNER SELLER.

WHAT IS A FORECLOSURE? Foreclosure is a legal process by which a borrower who has defaulted on their agreement to pay loses their home and their financial interest and ability to occupy the property.

Once the finality of foreclosure is understood, many home owners in distress have opted to sell their home through a Short Sale procedure. Make no mistake. A short sale does NOT save a home. What it does is reduce the harm to the seller's credit and ability to maintain or obtain future credit.

WHAT ABOUT SHORT SALE? The owner owes more money on their home loan (may be more than one mortgage or loan) THAN THE SALE OF THE HOME WILL bring. The classic "upside down" home where the amount owed is more than the market value for which the home is likely to sell.

In a short sale, the lender doesn't foreclosure, they APPROVE a Contract of Sale that will provide a pay-off for the bank even when the amount of sale is less than the owner/seller owes.

The lender agrees to and APPROVES a sale and accepts the proceeds as a satisfaction of the home owners debt on the home.

SHORT SALES are better for the owner in distress because it lessens the damage to the seller's credit and avoids another foreclosure sale in the community which can damage the market value of an entire community.

WHAT IS THE SHORT SALE PROCESS??

We'll help you understand the Short Sale process. Some steps that will be necessary are:

• Determining if you are qualified for a Short Sale transaction.
• Provide you with documentation to support PRICING recommendations.
• Fee disclosure for the REALTOR listing agent and buyer's agent.
• Provide explanations of the Short Sale process from start to finish.

HARDSHIP?? We'll help you understand how to compose a "hardship letter" to explain your need for a Short Sale. This is required by lenders when the Short Sale application is made.

IS THERE TIME?? Short Sale is not a "fast solution" or alternative to Foreclosure. Short Sales generally take from 60-120 days to complete, often longer.

HOW MUCH IS OWED?? Review the documents to determine whether you need a Short Sale alternative or if your home can be sold outright in a reasonable amount of time. This may depend on location and condition and accessibility (to prospective buyers).

ARE YOU COMMITTED?? Home owners who wish to sell their property through a SHORT SALE process have to be ready to cooperate with their REALTOR and the lender.

WHAT IS YOUR "HARDSHIP"?? What is the cause of your need for a Short Sale? Some accepted causes are: job loss, loss of income from business, medical situations in family, divorce, loss of co-borrower, natural disasters over which you have no control and no possibility of making repairs to sell.

STILL HAVE QUESTIONS?? Just call Lenn Harley, Broker for Homefinders.com, 800-711-7988 and we'll help.