Question: How long will the short sale take?
Answer: Normally the short sale takes from 2-3 months until we get an answer on the approval from the day we send in a short sale offer. This could take a shorter amount of time, but 2-3 months is normal.
Question: Can I receive relocation allowance money?
Answer: We always ask the lender for relocation allowance for sellers that still reside in the home. The relocation allowance can be $1,500, $3,000 or $10,000 depending upon what the sellers qualify for and what type of loan that they have.
Question: Will a short sale cost me any money?
Answer: We do all that we can to prevent a homeowner from having to go to closing with paying any out of pocket expenses. If possible, it is important to keep the utility and HOA bills paid current to prevent issues or liens at closing.
Question: Will I have a deficiency balance to pay if the short sale is approved?
Answer: With the majority of the short sales that we get approved, the sellers do not have a deficiency balance. Their credit report will reflect "paid in full for a lesser amount" There are some occasions that the lender will require a cash contribution or a promissory note from the seller which can also be negotiated with the lender. There could be taxes that are owed on the forgiven balance, so talk to your tax advisor for more information on this.
Question: What documents will be needed for the short sale?
Answer: The lenders will require the homeowners to complete a financial package and supply their bank statements, pay stubs, hardship letter and 2 years of tax returns. Its important when we request financials, that they are returned no less then 48 hours in order to keep a short sale moving forward.