If you are in danger of foreclosure or owe more than your house is worth, we can help. You may qualify for a short sale with your lender that will allow you to sell the house and negotiate a short pay settlement.
Don’t give up…. We have helped many clients just like you who did not know where to turn. Property condition and multiple liens on the property are usually not a problem. Even if you already received a foreclosure notice, call right away. It may not be too late.
A short pay is a negotiated settlement that the lender or lenders may accept in lieu of the total amount owed to pay off a loan as an alternative to foreclosure. Many times we can convince a Bank/Lender that they will be “better off” if they take a “Short Sale” now rather than getting the property back by foreclosure and trying to sell it later with extra additional costs and expenses.
The “Short Pay” discount negotiation process can be a lengthy one. It could take between two and six months to get an approval. Many Lenders have several layers of “red tape” that we will have to jump through in order to get an approval. So please be patient and understanding during this process, as we will be pushing as hard as we can to get the needed approvals.
Sometimes, and sometimes not. Just starting the negotiations will not automatically put a stop to foreclosure. However, many times we can convince a Lender to pause the foreclosure to let us attempt to negotiate the “Short Pay”. Therefore, while there are no guarantees, we have a very good record of stopping foreclosure and negotiating a successful short sale.
The purpose of a “Short Sale” is to get the needed discounts from the lender(s) so that the property can be sold before the foreclosure auction. One way or the other, you will be moving. The sooner you can move, the easier it will be for us to find a buyer. It is much easier to sell a vacant house!
NO! There cannot be a promise or guarantee to save your home from foreclosure. When mortgage payments are missed, the Lender/Bank is in the driver’s seat and can proceed directly to foreclosure. However, most of the time, they do not want to and we are excellent at presenting alternatives to the Lender/Bank that they many times will accept rather than foreclose. We are excellent at what we do, but NO PROMISES are made from us to you as to whether or not the Lender will accept a “Short Pay Discount” – they may or may not.
NO. In granting a “Short Pay Discount”, you the borrower will not get any proceeds from the sale of the property. If the lender is going to take a loss, they will not allow you the borrower to receive any proceeds. It is illegal for us to pay you anything and it is called loan fraud.
You will likely lose your house to the foreclosure auction. A “Short Sale/Short Pay Discount” is something we try after you have exhausted your other options.
There can be tax consequences associated with a short sale. As Realtors we cannot provide tax or legal advice and recommend that you speak with an attorney or accountant if you have any concerns.
The Lender/Bank will need to review documents that will include: two months bank statements, two months pay stubs, two years IRS tax returns and other information. The usual cause of delay and even dismissal of our offer to the Lender/Bank is due to the Seller failing to provide these items at the time of our “Short Sale” paperwork signing/closing. To help make this successful, please bring all the documents on the check list to our meeting.