What Is A "Short Sale"? Answers to Your Questions

What does the term "short sale" mean?

• A short sale, or pre foreclosure sale is when the lender is willing to settle for less than the mortgage balance. It allows the seller to avoid foreclosure by selling their property for an amount less than the amount necessary to pay off the mortgage loan. 

How Can I Qualify to Purchase a Short Sale?

• You need to be prequalified through a lender, or have proof of funds available.
• Be in a position to purchase the home in as is condition.  Most sellers are unable to make any repairs.
• Be patient.  Short sale approval takes a longer time period for approval.  The offer has to be approved by the seller, and lender.  In some cases the offer has to be approved by investors and private mortage insurance companies. 

Why Would a Lender Take Less Than the Mortgage Balance?

• Most lenders are not property managers. 
• They would rather negotiate a short sale, than spend thousands of dollars in litigation to foreclose on the property. 
• Most lenders do not want to incure holding costs associated with foreclosed homes.
• Through a short sale, the lender has the advantage of being able to cash out of a defaulted mortgage, thereby eliminating a foreclosure (REO) from their inventory.

Why Don't Lenders Want REO Properties?

• Lenders are not in the business of buying and selling foreclosure properties.
• Lenders are neither licensed realtors or experts in disposing of real estate.

Do I have Enough Time to Do a Short Sale?

• Yes. Until the sale date has arrived, you may have time to resolve your foreclosure by letting us negotiate a short sale with your lender.
• It is essential to submit a complete short sale package to your lender.  We require the homeowner to submit all required documents to us in a timely manner. 
• Time is of the essence when you are behind on your house payments. 
• We work aggressively and quickly to get your property sold.  Due to our due diligence and follow-up, we have a high rate of successful short sale offers.

How Long Does the "Short Sale Offer" Process Usually Take?

• We will begin to prepare your short sale package immediately.
• Once we receive an offer on your property, the time it takes for your lender to respond varies.  Some lenders respond quickly, just a few days.  Others may take 30-60 days, or longer.
• We will keep you informed as to the status and time frames we are working with.
• From the time a short sale package is submitted, we will negotiate and perform our due diligence to sell your property. 
• We will continue to negotiate with your lender to expidite the transaction.
• We take concise steps to increase the advantages of selling your home, and getting your lender to approve the Short Sale Offer.

What are the Benefits to the Homeowner?

• The homeowner can avoid paying real estate commissions and closing costs.
• The homeowner can avoid filing bankruptcy.
• The homeowner can avoid a foreclosure sale on their property.
• The homeowner can save their credit, and start fresh, by eliminating mortgage debt.
• If you have an FHA loan, you may receive up to $1,000.00 seller incentive for participating in a short sale.
• According to credit counseling experts, a foreclosure sale has a significant, adverse effect on your credit scores.  A short sale has a far less damaging effect on your credit scores.
• A foreclosure sale may prohibit you from mortgaging another home for three to five years, or longer.  However, by participating in a short sale you may be eligible to mortgage another home much sooner.

If I am Currently in Bankruptcy, Can You Help Me?

• Yes, in most cases.  However, we cannot negotiate the short sale, until the bankruptcy court releases the property from the bankruptcy. 
• We have been successful in working with  attorneys and trustees to get the property released, so you can proceed with a short sale.
• Our qualified staff can evaluate your case, and determine if you benefit from a short sale.

Can You Help Improve My Credit Scores?

• No.  We do not offer credit repair services.
• The best thing you can do to help your credit is to avoid foreclosure.

Why Should I List My Home with Real Property Homes.net?

• We are members of Metropolitan Indianapolis Board of Realtors (MIBOR).  Your listing will be entered in the Multiple Listing Service (MLS) now referred to as Broker Listing Cooperative (BLC), so other Realtors can show and sell your property.
• Your Listing will be entered on Realtor.com, Indystar.com, and RealPropertyHomes.net, and other sites as they become available.
• Our staff has training and hands on experience in short sale negotiations.
• We specialize in Short Sale Listings.
• We have a foreclosure attorney on board, with extensive knowledge of the judicial system.
• Our professional staff will handle all or the negotiations with your lender.
• You can put your troubles to rest, and let us deal with the stressful issues of mortgage delinquency.

How Do I Get Started?

• Meet with one of our experienced real estate professionals immediately.
• Put your troubles in our hands, be patient, and let us do the rest.
• Don't wait. Time is of the essence.
• Call 317-770-1331 today for a free and confidential consultation.