Frequently Asked Short Sale Questions and the Answers!

kristaNo CommentsBuyer's Brew

Short sales in San Diego are never cut and dry or black and white.  Every home, financial situation, and person is different.  The bank has to look at all those circumstances and approve a short sale.  So you have some questions?

See if our FAQs help:

1.  What is a short sale?
When a homeowner sells for less money than they actually owe on the mortgage.  This is accomplished  by providing the  proper documentation to the lender to convince them to reduce their mortgage balance to reduce the sale.
If the sale is approved, the lender takes a loss.
If the sale is approved, the homeowner does not need to come up with cash to cover the shortage to the bank.

2.  What type of situation is a short sale best for?


Most short sales are preformed on properties heading to foreclosure.  that means that the homeowner is a few months behind on the mortgage payment.

If you have no equity in your home, you are a good candidate.

Lastly, the homeowner must have some type of hardship which is obstructing him from paying the monthly mortgage.

3.  What are the benefits?
Short sales relieve the stress of foreclosure and allow the homeowner to get rid of their big mortgage payment.  Short sales allow you to avoud foreclsoure and get a fresh stsart.

On the credit side foreclosure deos more damage than a short sale.

4.  Can you short sell rental property?
Yes but you have to have a hardship.  Consult your tax advisor.

5.  I am in foreclosure.  Is a short sale for me?
Each situation is different and must be evaluated individually.  Important factors are:

  • Property in default
  • personal financial hardship
  • Little or no equity
  • At least 60 days to auction
  • The home’s value has declined

If you feel you fit these criteria, give us a call at (619) 519-3251 and we’ll discuss your specific situation.

6.  How does the bank decide the price?
The bank will do its due diligence in researching the property values.

7.  Who pays the real estate agents commissions?
Commissions are paid entirely by the seller.

If you or someone you know needs to sell short contact us at [email protected]