1. What is a Short Sale?
A short sale is a real estate transaction that allows the sale of a property for an amount less than the amount owed to the lender. The lender in return accepts the proceeds as settlement of the debt.
2. How long does it take to close a Short Sale?
In general a short sale can take anywhere between 3 to 9 months.
3. What happens to the homeowners credit rating when they short sell their home?
The loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. See our live example below.
4. What documents does a homeowner need in a Short Sale package?
Each lender will have different requirements. It is typical to require an Authorization to Discuss for the real estate agent and escrow officer, a hardship letter, purchase and sales contract, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), and tax records.
We can help you with this process.
5. Are there different treatments for Short Selling a property that is your primary residence vs a property that was purchased as an investment or rental?
A primary residence might receive the HAFA short sale which has proven quite effective in assisting the homeowner
Redding CA – Short Sales – New HAFA Short Sale Guidelines–According to the Congressional Oversight Panel (the Troubled Asset Relief Program watchdog) thus far
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