As a leading Short Sale expert real estate agent, I can work with your lender to accomplish the goal of relieving your stress due to mortgage delinquency and a pending foreclosure.  There are many things to take into account when preparing for a Short Sale.  First and foremost, you'll want to understand what a Short Sale means.  You'll also want to learn if your lender is going to require you to pay the deficiency balance or if you will just be able to walk away if the Short Sale is approved.  Among other things, you'll want expert advice if you're even a candidate for approval.  I can answer all the questions that you may have.  My track record of getting Short Sales approved is long and proven.

Here are some Q's and A's you may have regarding the Short Sale Process:

1.) What is a Short Sale?
2.) Why is it to your advantage to do a Short Sale?
3.) What documents will I need to begin the Short Sale process with my lender?
4.) How do I qualify for a Short Sale?
5.) I’ve heard that lenders will only accept certain types of hardships. Do you have examples?
6.) How much does it cost to sell my home in a Short Sale?
7.) Will the lender continue with their collection processes during the Short Sale Process?
8.) Do I have to worry about tax implications for a Short Sale?
9.) I have a first and a second mortgage, can I still do a Short Sale?
10.) If my home is already in foreclosure, can I still do a short sale?
11.) What if I don’t want to do a Short Sale – or it’s not right for me?
12.) I’ve been told I need to pay for services by a 3rd party to complete my Short Sale, is that true?
13.) How long will the Short Sale Process take?
14.) How do I get started with a Short Sale?

Q: What is a Short Sale?
A: A Short Sale means that you want to sell your home but you owe more than it is worth. Rather than bringing a large about of cash to closing, I can negotiate with your lender to get them to agree to satisfy all your mortgage liens on the home. This will allow you to sell your home without bringing any money to closing, or owing any money to your lender after closing.

Q: Why is it to your advantage to do a Short Sale?
A: A foreclosure can impact your credit far more, especially in the long term. In fact, some banks don’t report a Short Sale, they just report paid as agreed. Also, in Minnesota, depending on the number of mortgages that you have on your home, the lender may seek a deficiency judgment in the amount you owe. They could even come after other properties and assets of yours, including vehicles.  Your credit could recover from a Short Sale in less than two years, where as a foreclosure or bankruptcy can take 7-10 years.

Q: What documents will I need to begin the Short Sale process with my lender?
A: You will need the following documents for most lenders:
• Hardship Letter
• Monthly Income vs. Expense Worksheet
• 2 month's Recent Bank Statements
• 30 day's Recent Pay Stubs (If you are self employed, you will need a year to date profit and loss)
• 2 Year's Most Recent Tax Returns and W2's.  (If you are self employed, you will not need the W2's)

Q: How do I qualify for a Short Sale?
A: There are several different qualifications groups that you may fit into.
• Are you behind in your payments? You Qualify!
• Is your home in foreclosure? You Qualify!
• Are you on time with your payments, owe more than your home is worth, but still want to sell? You May Qualify!
Basically, if you have a financial hardship of any sort, you may be a candidate for a Short Sale.

Q: I’ve heard that lenders will only accept certain types of hardships. Do you have examples?
A: Yes! Some common hardships that homeowners encounter are as follows:
• Death of a family member.
• Loss of Job.
• Illness or injury.
• Divorce or new family members.
• Job relocation.
• Reduction in hours worked or pay expected.
• Adjustment of mortgage interest rates.

Q: How much does it cost to sell my home in a Short Sale?
A: Most likely, nothing! The lender in most cases will agree to pay all of your selling fees including Realtor commissions! Please contact me and we can discuss your current situation.

Q: Will the lender continue with their collection processes during the Short Sale Process?
A: Yes, unfortunately they will. 

Q: Do I have to worry about tax implications for a Short Sale?
A: Possibly. Typically the lender will give you a 1099-C that gives you notice on the forgiven debt that the lender has assumed. You may have to file this on your tax return. However, if you meet the IRS’s definition of insolvency, you will not have to worry about this forgiven debt. Please contact your tax professional to see if you are insolvent.  You may also be able to avoid the forgiven debt as taxable income if the home you are selling is your primary residence.  Again, consult your tax professional for all the applicable codes as they apply to you.

Q: I have a first and a second mortgage, can I still do a Short Sale?
A: Yes!  We will just need to satisfy both lenders to assure you of a successful Short Sale.

Q: If my home is already in foreclosure, can I still do a short sale?
A: Yes!  In Minnesota, we have a 6 month redemption period.  Not only can you redeem the home and stay living there, but you can work with the lender to complete the Short Sale.  The lender would much rather work on a Short Sale than to take the home back in foreclosure.  The reason for this is because lenders are in the business to make money on interest.  They are not in the business of owning Real Estate.  Unfortunately, sometimes they end up being property owners.

Q: What if I don’t want to do a Short Sale – or it’s not right for me?
A: The short answer is you don’t have to request a Short Sale if you don’t want to.  However, if you’ve had a life change and need to move away from your home and you owe more than it’s worth, the Short Sale may be one of just a few options for you.

Q: I’ve been told I need to pay for services by a 3rd party to complete my Short Sale, is that true?
A: Absolutely not!  Be careful about hiring these 3rd party companies.  A qualified Realtor, such as myself, will work tirelessly on your Short Sale and we only are paid if it is successful.  And as I mentioned before, we are paid from the lender!

Q: How Long will the Short Sale Process Take?
A: It depends on your lender. This process could take anywhere from a week to 3 months. I can answer this question with more specifics when we meet and you let me know who your mortgage company is.

Q: How do I get started with a Short Sale?
A: Call me today and I will meet with you to discuss your current situation and how I can help!