The Loan Workout Group
800-530-5171
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Helping Homeowners Avoid Foreclosure!
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Frequently Asked Questions
WILL A SHORT SALE STOP THE FORECLOSURE?
No. The foreclosure process will continue right up until the time the short sale is completed. It is important that you keep us uprised on any legal documents concerning an auction date. We will be able to postpone or cancel auctions if the short sale is under review in most cases.
HOW LONG DOES IT TAKE?
Short Sales don't happen quickly. The average time for approval is between 60 and 90 days. Some lenders can take as long as 120 days. It is important to understand the projected approval timeframe to assure buyers stay interested.
WILL I BE APPROVED?
There is no guarantee that the lender will accept a short sale. A lender must understand the hardship and the loan must be past due. The decision to grant short sale approval is made when a lender understands that the potential loss will be greater in a foreclosure sale.
WILL I GET MONEY FROM THE SALE?
Most lenders will not allow you to receive money from the sale of the home. FHA mortgages fall into a different category. There is a provision for sellers who complete a sale in 90 days to receive $ 1,000.
WILL I NEED TO BRING MONEY TO CLOSE?
Not as a rule. All costs associated with the sale are paid as part of the short sale. The one fee that lenders will NOT PAY are condo or association fees. It is important to make every effort to keep these fees current.
DOES THE BUYER NEED TO KNOW THIS IS A SHORT SALE?
Yes, the buyer needs to understand that the approval of the contract depends on the lender accepting the sales price. When your home is listed in MLS your Agent will advise that a 3rd party approval is needed. When a contract is accepted the following must appear as a condition of the sale:
"Performance of this contract is contingent upon current lender's acceptance of a short sale upon terms that are acceptable to the Seller."
WHAT HAPPENS IF I HAVE MORE THAN ONE MORTGAGE ON MY HOME?
If you have more than one mortgage on your property we will need to submit an entire short sale package to each lender. Routinely the second mortgages are released for as little as 10% of the balance. Be advised that some second mortgage lenders will reserve the right to collect on the balance in the future. Some lenders and Private Mortgage Insurance providers will want a note signed. Typically the interest rate is 0% and the terms range from 60 to 180 months. In these cases we will negotiate the best deal possible on your behalf.
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Avoid Foreclosure!!
The Loan Workout Group
An affiliate of the Carter Law Office
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