Short Sale FAQ
What exactly is a short sale?
A short sale is the term used when the owner of a home sells for less then is owed to the bank.
Do I need to make any costly repairs or pay for warranties?
No. Homes are generally sold “as is”
Can the bank come after me for their loss?
The bank may be able to peruse a deficiency judgment for their loss with a foreclosure or short sale. We negotiate with the bank to accept the sale as payment in full with no pursuit of a deficiency judgment”
Are there any tax implications?
The Mortgage Relief Debt Act of 2007 relieves owners who used the home as their primary residence of tax implications in most cases.
How will this affect my credit?
Your credit will be affected from missed payments; however there will be no public record as with a foreclosure or bankruptcy. The current Fannie Mae Guidelines allow you to purchase a home in as little as 24 months following a short sale. The time to purchase after a foreclosure is 48 months minimum.
Why should I hassle with it when I know I’m already going to lose my home?
If you want to save your credit and purchase again, a short sale can help with this.
What do you need from me to complete the transaction?
We would need a listing agreement to list your home just like any other listing. The bank will require some additional information depending on the lender and situation.
How long does this typically take?
A short sale can takes 1-3 months to get a response from the bank.
Will I need to make my payments while it is for sale?
You may choose to make payment if you would like. Lenders may allow you to short sell without being behind on payments.
What about my home owners insurance?
Your insurance should remain up to date to relieve you of any liability on the home.
Can I still live in the property while it is for sale?
You can, however it is easier to market and sell while vacant. You will have to move eventually when the home sells.
What are the typical steps involved?
Contact AJR Management and we can send you a short sale package. This contains a detailed list of procedures and documents needed.
Do you need me to be in town during the process, we’re thinking of relocating?
No. The process can easily be done by phone, fax and email.
Will I get any money from the sale of the home?
No.
Who pays you, (the realtor)?
The bank pays all agent fees.
Why should I use AJR and not the realtor who helped me buy the house?
Any agent can be a “Short Sale Specialist” without ever closing or attempting a short sale.
We have successfully negotiated the close of short sales and have a system to make the process fast and easy for the buyer and seller. We will work hard to get the best possible outcome for you.
