What is a Short-Sale?
A Short Sale, also known as a Short Payoff or Pre-Foreclosure Workout, is a program that allows a borrower
to sell their house even if their current mortgage balance is worth more than the current house value.
These sales are subject to lender approval and once approved, the lender will allow borrowers to sell
their property for less than the total amount due on their mortgage. Therefore, the lender releases the
borrower from the mortgage, preventing foreclosure.
How Can a Short-Sale Benefit a Homeowner?
A Short Sale can be one of the best options for many homeowners facing foreclosure. A Short Sale allows the
homeowner to sell the property and remove the secured debt associated with the home. The seller can walk away
from the sale with significantly less damage to his/her credit and save them from embarrassment of having their
home go into foreclosure.
Please click on the highlighted link for more information about the consequences of a Foreclosure VS. Short Sale
How Do I Qualify for a Short Sale?
In order to be eligible for a short sale, a homeowner must be able to prove to the lender that they are a
victim to "hardship" and are unable to continue making payments on their mortgage.
A hardship situation is one that is the result of some extenuating circumstance that forced the borrower into
a position where they can no longer afford their mortgage payments. While every situation is unique, some common
examples of hardship include:
- Unemployment or loss of primary income source
- Inability to work due to health crisis
- Mounting medical expenses
- Employment relocation
- Failure of business
- Bankruptcy
- Death of spouse or significant other
- Divorce or separation
How Much will a Short Sale Cost?
Absolutely nothing, there are no up-front fees or costs associated with the Short Sale. Fees are rarely paid by the
homeowner, and are only compensated if a short sale is successfully negotiated. The lender usually pays for all fees
including closing costs, escrow fees and realtor commissions.
How Long does a Short Sale Take?
Every short sale situation is unique and follows its own timeline. Typically a short sale is completed within one to four
months from the time we have a complete short sale package ready to present to the lender.
How Do I get Started?
Please contact Medina Realty's Short Sale Specialists, Rashid Omar, Michael Putz, Que Her or Berhe
Abraha, to help you receive proper instructions.
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Once the property is sold and the offer is accepted by the lender, homeowners will have one less thing to worry about. Medina Realty would like to be part of this process.
To get started on your Short-Sale Application, please fill out the application below and a Short Sale Specialist will be in contact with you soon.