Short Sale Definition:  Short Sale or “short payoff” is a type of real estate sale transaction, when the bank /lender allows the property owner of a (either residential , commercial, or vacant land) to sell their  property for, "less than what is owed" on the mortgage balance. It may be the best alternative for people who are trying to learn how to stop foreclosure of their home. The income of the sale goes to the bank/ lender, and in exchange, the seller can evade foreclosure. 

The following is an example: Mrs. Smith loan balance on her property is $300,000, but the property's appraised value is now only $150,000. Mrs. Smith may be OK to short sell her Home. Consequently, Mrs. Smith could try to sell her home at the best price she can obtain for it ($150,000) and all the income from the sale would go to the bank/lender.  Please note, from the income from the sale, the bank/lender would pay some of the closing costs like, realtor commissions, title/escrow fees, etc. The bank/lender is happy because they would not have to go through with the high costs spent on a foreclosure action. Because Mrs. Smith cooperated with the bank/lender, by short selling her home- she sold her home- therefore, no foreclosure listed on her credit report.   

The first thing to do is to contact us either by phone at 1-800-296-0090, by email us info@beta.foreclosuresaviour.net – so we can give you solid answers to your questions . If you would like to proceed with the short sale, realizing it is the best choice for you, a short sale specialist will send you a list of the items that your bank/lender will need for your short sale. Then, we will have one of our top-notch local real estate agents in your area (we do all 50 states, including Puerto Rico), so we can get the property listed for sale by our local expert. The real estate agent’s function is to confidently, list and then successfully, market the property to obtain a solid offer to submit to the bank/lender. Our responsibility at our national headquarters now in Naples, is for our team of short sale experts to take care of all processing, all the paperwork with your bank/lender, to quickly obtain the short sale approval. Our proven multi-team system allows all team members to focus on what they oversee and bringing it all together for quick short sale approval. That successful teamwork makes us #1 in the country for short sales.

If you have a foreclosure on a property, it will be very harmful for your credit score. It will significantly decrease the credit score. On a credit report, it will appear on the line next to the bank/lender's account, it will register as "FORECLOSURE”. This could be drastic and may keep the homeowner from getting future loans for a house, car, or credit card. It could be many years before the homeowner can regain a good credit again. In addition, the homeowner may be required to disclose the foreclosure when they apply for a mortgage, other loan, and even on a job application. Employers have been known to decline a person applying for a job because of a low or poor credit rating. No doubt, a foreclosure can negatively change a person’s opportunity in getting future credit & financing. In addition, the bank/lender may come after the homeowner in court after a foreclosure. A “Foreclosure Judgment” gives them the right to purse the homeowner even after the homeowner loses the house. Lastly, and unfortunately, the IRS may pursue the homeowner for supplementary taxes because of the foreclosure as well. Because of the many problems associated with the aftermath of a foreclosure, we are very much in favor of a short sale instead of just letting the property go to foreclosure auction sale. To us, there is no comparison- with a short sale, it is a win, win situation.

Indeed. Any type of real estate can be short sold. We have completed short sales on houses, condos, multi-unit properties and even commercial real estate. You can short sell your primary residence, a second home or an investment property.

Yes. Many say we are the best processing company out there by far. Not just homeowners, but quite a lot of top industry professionals know we are well respected within the industry for our remarkably high standard of real estate short sale ethical principles. As one of the nation's leading short sale companies, we offer the most professional short sale help and processing services available to homeowners and Real Estate Agents. After many, many Short Sale transactions, we've found there are issues that derail closings. We have taken steps to overcome them which is why we've specialized in short sale help for homeowners as well as real estate agents. We have credibility because we do not waste the time of all the parties involved. Because of our credibility, we often get quicker positive responses. Short sales fail because negotiators are inexperienced. Lenders do not have the time or the patience to tell agents or amateurs how to work their systems. We handle short sale files all day, every day. By doing this, we have created good relationships at every major bank/lender short sale processing dept. We have the contacts to get the deal pushed through! But don’t take our word for it, hear what our clients have to say... Just check out our Testimonials page to see comments from other satisfied customers.

Yes, you can be approved for a short sale without missing a single payment! Don't listen to people saying you need to miss a payment. The biggest part of getting approved is showing your hardship and how your future ability to make payments has diminished. You say it has, so we must help you prove it.

Yes. If you have been denied a loan modification you are not alone. Many homeowners struggle with the difficulties. Choosing us to do a short sale is one of the best options that is left. Like the loan modification, it is your other alternative to prevent foreclosure. In many cases the banks/lenders are willing to pay the homeowner up to $10,000 at the closing to complete a short sale.

In most distressed mortgage situations, foreclosure is a last resort for all parties involved. Banks/lenders are typically very motivated to pursue a short sale prior to foreclosure. A short sale gives the bank/lender the ability to cut its losses up front thereby avoiding the expense and time of a foreclosure and potentially greater losses. Lenders want to make loans; they do not want to be in the business of owning and managing real estate. In nearly every case, a short sale offers a significantly better return on the lender’s investment than a foreclosure does.

One of the items your bank/lender or servicer will ask for is a hardship letter. A hardship letter is a written explanation as to what has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure. This letter acts much like an outline or biography of your current issues that are affecting your ability to meet your financial obligations. We can provide you with a sample that usually gives you an idea of what they are looking for. Every situation is different, but here are some examples: Adjustable-Rate Mortgage Reset- Payment Shock (uncommon, but we will see more lenders accept this in the future), Illness, Loss of Job, Reduced Income, Failed Business, Job Relocation, Death of Spouse or C0-Borrower, Death, Incarceration, Divorce, Marital Separation, Military Duty, Reduced Income, Medical Bills, Damage to Property (natural disaster or unnatural), or others.

We know the complicated process and internal workings of the mortgage and banking business. We have completed many short sales from north, east, south, and west, and we have experience with every situation from A to Z in processing short sales.  We have negotiated with most every lender, servicer, and credit union. We have effectively negotiated short sales on first mortgages, second mortgages & lines of credit. Including other liens, i.e., HOA, property tax, income tax, and judgments.

 We take care of every detail of the short sale for the homeowner. We expedite all the negotiations, and make sure the short sale package includes items like short sale form, hardship letter, financial sheet, HAFA Government forms like RMA, Dodd Frank sheet, 4506-T, etc. We will make sure that the package is properly completed for submission under the bank or servicer's requirements.

Most importantly, we guarantee first-class customer service. We have an "A" Rating from our many customers, and are available 24-7, Night and day to make you feel confident throughout the whole process! Questions? Call us at 800-296-0090

There are no costs to the homeowner. We do not charge a dime to the homeowner. Other companies may charge you, but the government, MakingHomeAffordable.gov , informs everyone that charging money to homeowners for short sale services can be a kind of foreclosure assistance fraud. Our company will never ever ask you for money for assisting homeowners in the short sale process.

The good news is a short sale usually allows the consumer to obtain an institutional loan for a new home within two years. A short sale will lower credit score, but considerably less than a foreclosure. When a short sale is completed, there will be NO "foreclosure" listed on the homeowner's credit report for the simple reason: we stopped the foreclosure and sold the home!

When you move out will depend on when you expect to get the short sale approval letter. We suggest sellers wait until the approval letter is received and for some, longer than that. Many banks will give you 30 to 45 days to move. Our advice to sellers is to stay put during the short sale approval. Don't move. Although homeowners may be eager to get on with their life, turn the next page and put all of this behind them, there are good reasons to stay in their home until the short sale closes at the title company.

Sadly, most real agents do not know how to process short sales. This type of real estate transaction is too complicated to trust to a novice. Unfortunately, an agent can't learn in 3 hours how to be a short sale agent. So don't fall victim to choosing a short sale agent simply because that agent has a flashy website or has taken a couple of short sale classes- they may be worthless and jeopardize your chance at a successful short sale. We have successfully completed countless of short sales from all over-North, South, East and West! We have negotiated with every major bank/lender and credit union across the county. We have completed negotiations all kinds of liens on first, second mortgages, HOA, tax, and credit card judgments. We already have the short sale packages from every bank know each bank's short sale guidelines and operations. We also have systems in place that may streamline the short sale process and give your transaction individual attention.

You don't have to wait. You can do a short sale at any time. However, if you do start missing payments here are some things that can happen after each missed payment.
1. If you miss your first mortgage payment, your lender will typically offer you a grace period of fifteen days. During these fifteen days, you can send in your payment without being considered delinquent. Once this grace period is up, however, you’ll be charged a late fee. This fee is usually 2 to 5 percent of your monthly payment amount.
2. If you miss your second mortgage payment, your mortgage is likely considered to be in default. At this point, the lender will probably contact you to find out why you haven’t made your payments.
3. After you’ve gone about 90 days without making a payment, you’ll receive a demand letter. A demand letter informs you of the amount you are delinquent and that you have 30 days to bring your mortgage current. If you don’t pay the specified amount or decide by the deadline, foreclosure proceedings might begin.
4. Fourth Missed Mortgage Payment. After you’ve missed the deadline provided in the demand letter and you are four months behind on your mortgage payments, the foreclosure process will usually begin. First, you’ll be referred to your lender’s attorneys. As a result of your delinquency, you’ll be required to pay any legal fees during this time.

Yes, if you have a financial hardship that is causing you to be insolvent (not have enough to make ends meet), you should be able to do a short sale.

Some short sales are approved in 2 to 8 weeks. Others can take 90 to 120 days, on average. The length of the short sale generally depends on the investor, not the bank. You see, every bank/lender and loan servicer has detailed guidelines that must be met. Many mortgage loans are not in fact owned by the lender, it is typically, an investor that owns the loan. Most mortgage loans are not actually owned by the lender. Usually, the bank/lender is just a “go-between” for the investor that owns the loan. The servicer submits the short sale package to the investor, who either approves or declines the offer. We have the knowledge and the understanding of this to guarantee that all is completed as fast as possible. Therefore, working with a professional is critical in ensuring your file will move along and get approved. We can help to speed up the short sale process by staying on top of the file and holding the bank accountable. Checking in with the bank at least three times a week is imperative. Recognizing the behavior of incompetent negotiators and requesting a replacement is often necessary as well. We are never afraid to escalate. But here’s the bottom line. When we submit a reasonable offer based on comparable sales in the area, and our package is put together properly, the short sale process might take 30 – 45 days. This is the time frame between the offer and the final approval. If there are multiple approving parties involved, and/or the lender is currently dealing with a backlog, then the process might take longer.

STEP 1: The Decision: The choice to do a short sale, engage our services and move on with your life must be made by you! We appreciate that this may be an emotional situation, however, the only way to have closure and gain peace of mind, is to make the decision that you have done all that you can and that the circumstances of this investment are not within your control. The homeowner will have all their questions answered by one of our short sale expert mortgage counselors (not a salesperson)., The counselor and the rest of their short sale team will be with the homeowner through the whole process. The short sale expert will email the homeowner a list of documents needed to start the process of a short sale. The homeowner will be gathering the documents.

STEP 2 - Engaging Our Services: You will engage Foreclosure Saviour Mitigation Services to complete all aspects of the Short Sale on your behalf. We will have our local real estate agent, contact the homeowner to schedule a time to meet in person. At this meeting, the agent will collect the documents, assist you with the Hardship Letter, help to fill out the short sale forms +required by your lender, complete the listing agreement, take some quick photos of the house, etc. Back at the office, they will get the property listed for sale and give all items to your short sale negotiator. Your short sale negotiator will begin to process all the paperwork and handle all the negotiations with your lender.

STEP 3 - How We Process Your Short Sale: From this point forward, Foreclosure Saviour Mitigation Services will handle all the paperwork and negotiations with your Lender. We will submit your Third-Party Authorization to the lender so that we may negotiate on your behalf. We then submit your short sale package to the bank/lender. The package will include: Listing Agreement, Purchase Contract, Settlement Statement -includes all costs that will need to be paid by the bank/lender from the proceeds at the closing like: Taxes, Title Fees, HOA Dues, and Realtor Commissions. The Listing Agreement we present to the bank/lender is between the homeowner and our preselected Florida Real Estate Broker. This listing is required by the lender and will appear on the local Multiple Listing Service or "MLS". The commission is paid by the bank/lender from the proceeds of sale. The Listing Agreement and the Sales Contract are uploaded on the MLS at the same time. Most times, we already have a qualified buyer for your property. This is great for the lender and for you because we begin with a Sales Contract. If we don't already have a buyer, The real estate agent will schedule times with the seller to show the property to interested parties.,.

STEP 4 - The Bank/Lender's procedure: After the bank/lender receives our short sale package, their process begins. Their processing time varies. Usually, it takes them 72 hours for the bank/lender to review and upload into their system. When the bank/lender calls the homeowner, we suggest that the homeowner tell them that, "they are going to do a short sale instead of foreclosure"- This will stop any further collection calls to you and your family. Throughout the short sale process, the bank/lender may require additional documents or updated items like, pay statements & bank statements. This is quite common and part of the process with most short sales. Our job is to follow up with the lender daily, and make sure the file keeps moving along without any delays.
Usually, within 30 days, the bank/lender will order an appraisal on the property (A member of our team will be there at the time of the appraisal). This gives the bank/lender the current market value of the property. Once the appraisal is completed, the bank will weigh it against the offer received. After the appraisal has been reviewed by the bank/lender, they will inform us of the value. It is at that point, the bank/lender can approve the offer, or counter the offer. If the offer is close to the appraised value, the bank will issue an approval. Or, if the bank feels the offer is too low, they will counter the offer. Then, it is simply a negotiation with the bank, and how to, "meet in the middle" on the short sale. After an agreement is made on the counteroffer, the bank/lender will generate the "short sale approval letter".

STEP 5 - The Short Sale Closing: Now that a short sale approval letter is received, it is up to the buyers to close. The buyer may have an inspection or an appraisal, etc. If it is a cash offer, then the closing can take place within 24 hours. If there is mortgage financing, then, once the buyer obtains their mortgage approval, the title company can prepare and schedule the short sale file for closing. Then, closing funds (checks are dispersed) and the process is finished! You too may receive a $10,000 relocation check - ask about the "HAFA" Short sale program....
• Imagine your life with no more phone calls, letters, mortgage payments or HOA dues, no foreclosure on your record and the ability to buy another home within two years... You may even receive $10,000 relocation assistance. There is no cost to the seller for our services- homeowners pay nothing!
• At Foreclosure Saviour, we will take care of the whole thing for you, from submitting short sale offer, negotiating with the bank/lender, marketing and selling the property. so, we're confident that we can help you. Just give us a call! 800-296-0090.

No, we do not process loan modification requests. You can contact your lender directly to inquire about qualifying for a loan modification.

When your short sale is finished, and your bank/lender will pay a commission to the real estate agent associated with your short sale. We then share in that commission, or in certain states, the buyer of the home may pay for our services. We will never ask you to pay us anything. Unless we are successful in closing your short sale, nothing will get paid. When the short sale is complete, you don't pay us, either the bank/lender or buyer pays us, not you.

The country has been experiencing a foreclosure crisis over the last decade. More than seven million homeowners have experienced foreclosure since the housing crisis began. As a result, so many people had mortgage debt forgiven that the government stepped in to help them avoid even more financial damage with the Mortgage Forgiveness Debt Relief Act. But in 2007, the "Mortgage Forgiveness Debt Relief Act”, became law, which exempts homeowners from having to pay taxes on forgiven mortgage debt. This allows homeowners to short sell their primary residences, which are owner-occupied and are eligible for tax exemption through the act. Vacation homes and investment properties are not eligible. Up to $2 million in forgiven mortgage debt is eligible to be excluded from income tax. This law will expire on the early part of 2017. As of now, the law may be extended through 2017, because it has been extended every year since 2008; we believe Congress will be extending the act in 2017 because people are still in process of short sales now into 2017. Nevertheless, there are additional rules in place to reduce or even totally wipeout the homeowner's tax responsibility. It is important that you discuss this with an attorney or tax professional. Please visit the IRS website for additional information on this subject at www. https://www.irs.gov/ regarding short sale tax liability.

• Yes, the government’s Home Affordable Foreclosure Alternatives Program HAFA® provides homeowners the opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale. It also provides homeowners with $10,000 in relocation assistance. The Features and Benefits of HAFA are that you can get help with your primary residence or rental property. Once you complete a HAFA short sale, there is a guaranteed waiver of deficiency, meaning you are released from any remaining mortgage debt. Once again, HAFA offers $10,000 in relocation assistance for you or your tenant and has a less negative effect on your credit score than a foreclosure and allows for a faster financial recovery. You may be eligible for HAFA if you obtained your mortgage on or before January 1, 2009, and you owe up to $729,750 on your primary residence or one-to-four-unit rental property (loan limits are higher for two- to four-unit properties). Mortgage companies nationwide—including Bank of America, CitiMortgage, JPMorgan Chase, and Wells Fargo—participate in Making Home Affordable (MHA) programs. See if your mortgage company is participating.

Yes. You don't have to wait. You can do a short sale at any time. If you’ve reached the foreclosure stage, you have the right to stay in your home throughout the process, but it will be difficult to get your home back. Often, the bank/lender will discontinue the foreclosure process for us to complete the short sale because it saves the bank/lender a lot of time and money. The lender /bank is not in the business of owning homes. Therefore, they would rather short sale than foreclose. However, it is important for us to contact the bank/lender right away to postpone any further action and begin to negotiate your short sale.

Yes

Waiting periods for a Fannie Mae or Freddie Mac mortgage loan following a short sale will be two years. FHA mortgage has a three-year waiting period. You may be able to qualify sooner than three years if you can show that extenuating circumstances caused the mortgage default. Extenuating circumstances might include serious illness or death in the family, usually involving a primary wage earner, divorce (in limited situations), or job loss.