FREQUENTLY ASKED QUESTIONS ABOUT SHORT SALES

• What is a short sale?
• Is a Short Sale right for me?
• How much do I have to pay if I Short Sale?
• How do I begin the Short Sale process?
• Should I avoid the hassle and deed the property to 3rd party?
• What type of hardship will my lender deem legitimate?
• Can I Short Sale if I am current on my mortgage?
• Why will my lender accept a Short Sale?
• Do lenders approve all Short Sales?
• Can I do a Short Sale if I have 2 loans?
• Can I do a Short Sale if my property needs work?
• How will a Short Sale affect my credit?
• Do I need to sell my home if my financial problem was temporary?
• What is a Forbearance Agreement?

What is a Short Sale?

The moment a homeowner sells his property for less than the amount of remaining loan on it, a short sale occurs. It is vital for the sales price to factor in any real estate commissions, recording fees, title search fees, and other charges.  These costs can be virtually paid off by the lender. Hence, your home gets sold, loan(s) get paid off, and foreclosure is prevented.

Is a Short Sale right for me?

As short sale makes it cheaper to acknowledge a lower payoff amount as compare to incurring expenses pertaining to foreclosure proceedings and real estate auctions, lenders tend to agree to this option. In case you are facing a financial hardship, making it difficult to meet your mortgage commitment, your lender's preference would be to settle the matter with you instead ofclaiming the property through foreclosure. 

How much do I have to pay if I Short Sale?

You may short sale for free. Ohio short sale approval leads all commissions, title and escrow fees, and even most repair expenses to be paid for by the lender. The contract includes the clause that, "Seller's agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller.  Seller shall not be required to deposit funds to close escrow."

It is to be noted that Short Sales are approved by lenders and the resulting loss is borne by them in order to evade larger losses incurred in foreclosure.

How do I begin the Ohio Short Sale process?

As per your convenience, you may register online or callOhio Short Sale Professionals to get a free, no compulsion consultation.We can perceive if you prequalify by call, email, or anoffice appointment.

Should I avoid the hassle and deed the property to a 3rd party?

Deeding your property another person without having the loan cleared is not a good idea as to the lender you would still be primarily responsible for the debt. Hence if the property is foreclosed, the credit will show up on your account. Deeding the property would also mean that would no longer have control over it and the deed holder can move in or rent out the home and keep the money. Discuss with an attorney before deeding your property to anyone as it would adversely affect your credit if they stop clearing outstanding payments.

What type of hardship will my lender deem legitimate?

This depends on the company considering the Short Sale request. The Short Sale request will be processed by the Loss Mitigation Department as long as the loan is believed to become felonious. A'hardship letter' is a list of facts describing how you landed in this financial stress and makes an appeal to the lender to agree to an amount that is less than the complete payment.

Below is a list of the most common and frequently accepted 'hardships' by mortgage lenders:

• Family illness or injury
• Loss of job
• Reduced income
• Job Relocation
• Failed Business
• Death, Death of Spouse or Co-Borrower
• Divorce or Marital Separation
• Incarceration
• Military Duty
• Medical Bills
• Damage to Property (natural/unnatural disaster)
• Adjustment of Mortgage Payment
• Unforeseen Increase in Living Expenses

Can I Short Sale if I am current on my mortgage?

Perhaps.A few lenders tend to acknowledge a Short Sale file for approval on non-offending loans. Others prefer to accept the file only if the loan is delinquent. It is better to submit your Short Sale file to see what becomes of its approval.

Why will my lender accept a Short Sale?

In times when a bank wishes to avoid the expensive and lengthy procedure of foreclosure, a short sale can serve as a quicker solution that minimizes losses. The following reasons describe why a Short Sale payoff would get approval from a mortgage company:

Asset Management Expenses – it is compulsory for the property taken back by foreclosure to be managed, repaired, and resold.  Multiply this by a huge number of homes to realize what a costly venture it is to manage and maintain real property assets. It is likely that the foreclosed homes call for utilities to be functional, repairs to be made, and services required for the overall maintenance. The lender would prefer to eliminate the extra time and administrative costs associated to these activities by opting for a successful Short Sale.

Legal Concerns – in the situation where borrowers find it impossible to comply with the mortgage requirements and are ready to work with respective lenders compromisingly, the mortgage lenders would face a legal pressure that is bound to push them to partner with borrowers to get an impartial solution.

Reserve Requirement – loans that are non-performing and delinquent appear to be burdensome to mortgage lenders. It becomes necessary for the lenders to reserve some funds to bear with potential losses. Unless the bad loans get resolved, the reserved funds non-operational to generate new loan fees. Opting for a Short Sale enables lenders to put these reserves to work.

Wall Street – in order to sell packages of loans, mortgage lenders highly depend on the secondary mortgage market. It is crucial for them to sell off the bundle of loans so as to put the funds back into running by collecting loan fees in the process of loaning out money again. If these loans perform poorly, the lender's capability to sell loans to the secondary market can be hindered drastically. A Short Sale that is successful can thus enable loan payoff to be resolved swiftly.

Do lenders approve all Short Sales?

No, this is the reason why it is essential to work with a Ohio short sale professional who is experienced and has the skills and education to get the approval for a Short Sale. Our teams of experts work conscientiously to keep pushing the file towards its approved state. You may begin by simply calling or emailing us for a prequalification. There are no charges for getting started.

Can I do a Short Sale if I have 2 loans?

We are able to work with two lenders if you have two separate loans and the lender of each respective loan is not the same. We usually get both of the lenders to cooperate with each other even if the value of your property is less than the balance outstanding on the 1st mortgage. There is no doubt about the fact that no lender wants to deal with the time and expense involved in foreclosure.

Can I do a Short Sale if my property needs work?

Certainly. The loan business is not like the 'repair' business and therefore lenders are not equipped or patient enough to make repairs on a foreclosed property. They would rather prefer to Short Sale the home and have the new owner handle this task.

How will a Short Sale affect my credit?

The most damaging event that your credit status can incur is the adverse impact of a foreclosure and thus should be avoided. With a Short Sale, you may be able to get a Fannie Mae mortgage to buy property in just 2 years, while a foreclosure would do the same in 5 to 7yrs.  If you wish to resume normal borrowing, you ought to repair your credit sooner.

Do I have to sell my home if my financial problem was temporary?

Probably not, but you should persuade your mortgage company with two things, first being the fact that it was a problem beyond your control that hindered you to comply with the mortgage obligation. This may include illness, job relocation, temporary disability, etc. secondly, you can convince them that you are currently stable to make your mortgage payments with progress towards your aberrant amount.

What is a Forbearance Agreement?

In the case where the mortgage company defers the primary mortgage payment and asks for only the escrow amount to be made for the next one to six months, depending on the lender, a forbearance agreement takes place. This agreement saves one from foreclosure as it indicates that the lender has permitted for the owed amount to be paid sometime later.