Short Sale Answers

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Short Sale Realtors®
  • What are short sales?

A short sale in real estate occurs when a lender agrees to accept a discounted payoff on a loan. In most cases, the home owner owes more on the property than the the home is currently worth. This occurs only when a home seller qualifies for a short sale through proving a hardship.


  • Why is it to my advantage to do a short sale? 

foreclosure can impact your credit far more than a short sale, especially in the long term. In fact, some banks don’t report a short sale.  In addition, in the event of a foreclosure, in many states the lender will seek a deficiency judgment in the amount you owe.  They could even come after other properties and assets of yours, including vehicles.  Your credit could recover from a short sale in less than two years, whereas a foreclosure or bankruptcy can take 7-10 years. A short sale by itself will likely lower your credit score by about 50-120 points. The hardest hit to your credit score typically comes from missed mortgage payments rather than the actual short sale itself.

  • Can I get any money back from a short sale?

As part of the Making Home Affordable Plan, and specifically the new Home Affordable Foreclosure Alternatives (HAFA) initiative recently announced November 30th, 2009, qualified home owners can get $3,000 BACK from a short sale to use towards relocation expenses!  Some lenders are offering even more!  Click Here for more information on this program.

  • How can the Short Sale Specialist Network help me?

We are short sale Real Estate agents and Realtors throughout the United States who are specialists in working Short Sales in our local areas. We help home owners by working with your lender to negotiate a lower payoff amount in order to price your home below competition and get it sold. Our agents will also aggressively market your home to attract buyers and oversee the entire sales process of your home.  These services are at no cost to home owners.  Only the best and most experienced agents are able to stay in our network.  A weekend or online short sale training designation does not make someone an “expert.”  The average agent within our network has closed over 50 short sale transactions.

We service anywhere in the United States, our network is nationwide!

Click Here To Contact Us or call toll free at (877)737-4903 for a consultation

Click Here for a lender short sale package and list of required documents

How To Short Sale A Home

  • What are the qualifications for a Short Sale?

The main qualification for a short sale is that you are in some type of  “financial hardship.”  This can include: loss of employment or income, divorce or separation, relocation or job transfer, major illness and medical expenses, high dollar repairs without the resources to make them, increased bills or higher living expenses.  A good rule of thumb is that a short sale is not for those who simply “want” to sell, but only for those who “have” to sell.  You typically must prove your inability to pay your mortgage each month, however many lenders have become more lenient and will make exceptions sometimes for homeowners who are not even in hardship.

  • What if my home is worth more than my loans, but I could not pay the closing costs?

 You can still short sale your home.  Many homeowners in the country have avoided adjusting the price of their home to current market value in a desperate attempt to receive enough money back to pay off their loan balances and closing costs.  If this is you, you are just delaying the inevitable as home values continue to fall across the country. In a short sale, we charge all traditional sellers’ closing costs to the lender!


  • If I sell my home short, can the bank come back after me for the money?

Not in most cases.  We will work to get a full release for you at closing.  This release will fully forgive any deficiency between the amount you owe, and the proceeds from the sale of the home.  You should consult an accountant regarding tax ramifications, especially if it is an investment property. Depending on the state in which you reside, some laws forbid banks from attempting to collect deficiencies under certain circumstances.


  • Who will pay the Realtor commission? 

Your lender pays the commission.  They pay a regular Real Estate Brokerage fee, just like a home seller would in a traditional transaction, and just like they would if they foreclosed on your home.  Again, you pay $0 out of pocket, period.


  • How much work will this take? 

 Not much for you. We will ask you to gather certain financial information and forms for us to present to your lender. Our agents will handle the negotiations and details with your bank as well as the process involved in selling your house.


  •  What happens to the money that is forgiven from my lender?

Any balance shortfall on your mortgage will likely be written off as a loss by your lender.  Because of this, your lenders may also send you a “1099” for any amount forgiven.  Due to the Mortgage Debt Relief Act of 2007, you are NOT required to pay taxes on this money if you short sale your primary residence prior to 2012.  Consult your accountant with any other questions regarding this.


  • If I am going through foreclosure, can I do a short sale? 

YES! In fact, the bank will likely be more than happy to work with you on a short sale. It is to the bank’s advantage as well as yours to work out a short sale.  The foreclosure process costs a lender on average $58,000! In addition, too many foreclosures look bad to a bank’s investors.


  • Can I stay in my house until the short sale is completed?

YES. You will not have to move out until the closing.  In fact, if you are facing foreclosure and we are actively working with your bank, we can typically get your lender to delay the foreclosure proceedings and make it possible for you to stay in the home for some time.


  • Will the bank continue their collection activities?

Yes, the bank will continue its collection activities. That may mean they will call you or send you letters looking for a payment even if you are currently pursuing a short sale. However, most banks will not foreclose on your home if you are actively working on the short sale.


  • What if the terms of the short sale the bank gives me are unfavorable?

If the terms of the short sale are not in your best interest, you are not required to sell the property and complete the short sale.  Do remember though that a short sale will have the lender forgive you of the debt and is the best option to avoid foreclosure or bankruptcy and will have the least negative effect on your credit.  If you choose not to do a short sale the bank will NOT forgive you of the debt and may continue to pursue you for the outstanding loan balance.


  • Are there any dangers to be aware of when working a Short Sale?

Be careful of scam artists or shady individuals if you are in financial hardship or facing foreclosure!  These sharks can cause more harm than good.  Never sign a quit claim deed, power of attorney or an “option contract” without consulting an attorney and experienced agent.  A good rule of thumb to understand is that anybody trying to purchase your home will look out for their own best interests in the transaction, NOT yours. 


  • Can my current Realtor work a short sale on my home? 

Unfortunately not in many cases.  While there are many agents that do negotiate and work short sales, most lack the knowledge and experience necessary to properly execute one.  A short sale is NOT part of the Realtor “basic training.”  Even most agents with CDPE (Certified Dist. Property Expert) or other Realtor® designations are inexperienced with them.  The results can be disastrous!  An experienced Short Sale Realtor knows how to make deals happen, when inexperienced agents make foreclosures happen.  Only the best and most experienced agents make it into our network.

We understand this may be a very difficult and stressful time for you and your family.  Our job is to get rid of your headaches and help things go as smoothly as possible for you.  We are a nationwide network of Real Estate professionals who are very experienced in working with home owners and lenders in this highly specialized process.

Contact us for more information and a free consultation!

Click Here or call toll free at (877)737-4903


Services Provided


  • We will discuss your situation and explain all of your options with you in detail. A short sale is NOT the best option in every case. 
  • We will provide you with all of the forms and documentation that are required from your lender in order to process a short sale.
  • We will connect you with one of our local short sale specialist real estate agents to process your short sale and list your home on the market.
  • One of our local Realtors will coordinate an aggressive marketing plan to attract buyers to your home and help get it SOLD!
  • Our agent will work directly with your lender to negotiate the short sale, as well as do all of the processing involved!
  • If required, our agents can sometimes also offer tips and suggestions to delay the foreclosure process while working with your lender, and possibly keep you in your home longer.
  • We will work to get your home sold and get you forgiven of your debt and the loan deficiency!  This will keep the lender from being able to come after your other assets.



  Need a Distressed Property Expert Certified in short sales to offer free Chase short sale services? Our Distressed Property Expert Certified real estate agents are here to help, and are Certified or training in the Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Nevada Short Sales Realtors, California Short Sale Realtors, Short Sale Real Estate Agents in Arizona and Short Sale Realtors in Florida, Michigan Short Sale Realtors, Short Sale Specialist Realtors in Georgia, Ohio Short Sale Real Estate Agents, Colorado Short Sale Realtors.  West Virginia Short Sale Real Estate and Virginia Short Sale Specialist Realtors offer free help.  Short Sale Specialist Real Estate Agents in Illinois and Indiana Short Sale Realtors, New York, New Jersey Short Sale Realtors.

Note that we are not attorneys or tax professionals. Seek appropriate legal advice in legal matters.


Wherever you are in the country, our agents are close to home!

Call us at (877)737-4903 or fill out the form below for a FREE, confidential, no obligation consultation to discuss how we may be able to serve you.  We understand that time is of the essence when it comes to these matters. Our response time for your consultation is typically the same business day!

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