Q & A Forum

Q & A Forum

What will a Short Sale cost me?

Nothing! In a properly negotiated Short Sale, your lender agrees to pay any of your closing costs including the Realtor’s commission. In some situations, your lender may also agree to pay some of the buyer’s closing costs.  Very few real estate agents have obtained the training and skill for these unique negotiations. How does a distressed homeowner know whether a real estate agent is truly qualified to facilitate a short sale? Look for an agent with a CDPE designation.

How long does a Short Sale take?

Depends. Once a purchase offer has been submitted some lenders are responding quickly. In a recent negotiation the lender tendered acceptance within 4 days. Another lender had taken 90 days. All lenders are overwhelmed with the amount of Short Sale offers they’re processing. Each is unique. After we receive lender approval, escrow is opened and typically closes within 30 days.

I have a first and second loan and owe much more than what my house is worth. Can I avoid a foreclosure and participate in a Short Sale?

Yes! Many of the Short Sales we’ve negotiated included multiple lenders with loan amounts much larger than the property’s current value. Lenders understand that a property will only sell for today’s market value. As long as an offer is reasonable, lenders would rather enter into a short sale than take the property back at foreclosure and attempt their own REO sale in the same market.

 CA Department of Real Estate #01313330