FAQs

What is a Short Sale?

Short Sale Facilitators keeps details straight and communication clear

Short Sale Facilitators keeps details straight and communication clear

A short sale is the sale of a property for an amount that is less than what is owed to the lender. The lender is “shorted” but receives as much money as possible through the sale of the home. Lenders often allow or suggest short sales to homeowners because a short sale can alleviate a bank paying the costs of a foreclosure lawsuit.

Many people come to Short Sale Facilitators not understanding that a short sale is an alternative to a foreclosure or bankruptcy. A short sale is less damaging to credit and lenders are often just glad to get some value from the property.

The success with a short sale depends upon who you use for the transaction. Short Sale Facilitators looks at all the cards you are dealt as a homeowner because every short sale is very, very different.

The Short Sales Process is Always the Same  It doesn’t matter if it’s a $1 million short sale or a $30,000 short sale. The process is the same for Short Sale Facilitators, the same amount of work for realtors, the same amount of work for a lawyer, and for the sellers.

But by having a Short Sale Facilitator negotiator leveraging the short sale deal, every aspect of the short sale goes more smoothly. Wouldn’t you want someone to handle your headaches?

Short Sale Facilitators do handle everything. They take care of EVERYTHING. They are detail-oriented. They are organized. Most important: Short Sale Facilitators is experienced. They are responsive, they communicate and you know what they know about the status of the short sale. They take the mystery out of the short sale process for you.

Short Sale Facilitators. The Power of Negotiating.

How Does a Short Sale Affect Credit?

A Short Sale May Have Less Impact on Your Credit

A Short Sale May Have Less Impact
on Your Credit

When people consider a foreclosure or a bankruptcy, a primary concern is the damage that either financial action will have on a credit report. The question is how does a short sale affect credit?

On a scale from one to 10, with 10 being the worst, a foreclosure is a 10. A bankruptcy is also a 10. So where does a short sale fall in terms of the damage that it can do to or have on a person’s credit?

A short sale is somewhere between and this will depend upon several financial and personal economic factors.

The reason that a short sale may cause less credit damage is due to the active role and effort that a homeowner takes in preventing a potentially worse financial situation.

When a mortgage goes into default for any reason, a homeowner knows. The homeowners can sit back and wait for the home to be foreclosed on by ignoring notices, not communicating with the bank and continuing to pay late, pay too little, or not pay the mortgage at all.

A homeowner can contact the lender when there’s a pending foreclosure and let them know that the foreclosure will be necessary, because the homeowner will be filing bankruptcy.

At this point the bank knows that legal fees to pursue a foreclosure will begin. The home will no longer bring revenue to the lender and worse, the home may go into disrepair if abandoned by a homeowner or stripped by the homeowner who leaves the property for a rental home.

The home will need to be sold. The taxes will add up. There will be home owner’s association fees adding up. The neighbors can file complaints about the disrepair to the property. The list of problems from a home that is involved in a foreclosure is endless.

This is why lenders will consider receiving whatever value there is still in the home in a sale. Short Sale facilitators will find a realtor to list the property after reviewing the files and paperwork provided by a homeowner. The negotiations begin with the lender to find out if they’ll participate or will offer an array of benefits to the owner including relocation fees or even the forgiveness of a second loan on the property. Sometimes even the deficiency on the property if it sells for less than is what’s owed to the lender.

All these situations require a financial investment on behalf of the bank or lender. The lender will file actions with every credit reporting agency based on what the outcomes and situations are. The homeowner’s credit takes a dive when the homeowner files bankruptcy and lets everything go including the home.

But Short Sale Facilitators is here to tell homeowners that you can go the extra mile, allowing Short Sale Facilitators to be responsible for the home by working on a short sale.

This active role requires that you gather documents and call Short Sale Facilitators. Short Sale Facilitators will get immediately to work to try to remedy or alleviate the upside down home or the default on the mortgage by presenting a package to the lender on behalf of the seller for a short sale.

The seller benefits because Short Sale Facilitators will immediately try to negotiate away the deficiency owed to the lender after the sale of the home. There is non-stop negotiation by Short Sale Facilitators who will try and who will fight for every single penny available to the homeowner as the home is sold.

What is a Deficiency?

Short Sale Facilitators Negotiate Deficiency Solutions

Short Sale Facilitators
negotiate deficiency solutions

A deficiency is the balance on a loan that is owed to a lender after a short sale occurs. A deficiency is the difference between what the home is sold for and what is actually owed to the lender.

The home may not bring what is owed because of a number of reasons including that the homeowner took out multiple loans after the principal loan and thus creating an upside down home. An upside down home is one where the value of the home at the time of sale is less than the amount owed to the lender. That amount owed to the lender has to come from somewhere or it is forgiven by the lender.

But loan forgiveness is not the preference of the lender. The lender wants the money that is owed. It takes knowledge, skill and powerful negotiation finesse to talk a lender into forgiving a deficiency in any amount.

But Short Sale Facilitators does it all the time. This is not to say that this will happen in your case. Every home sale is different. There are circumstances that vary by homeowner and by lender. But Short Sale Facilitators cannot guarantee, promise or tell anyone what will or what will happen. That’s not possible without a crystal ball.

The real estate market is not booming in Florida. Short Sale Facilitators’ job is to try to work to erase or eliminate any deficiency: the amount of money that is outstanding and still due to the lender after the final sale of the home.

The deficiency is the largest and most worrisome issue to homeowners and one of the main reasons why many people are simply scared to do a short sale.

There’s no need to worry because there is always a solution, there are many solutions to tackling the deficiency and this is where Short Sale Facilitators excels. The deficiency balance can be negotiated away. That’s correct. Short Sale Facilitators will ask for loan forgiveness on the deficiency so that the homeowner will not owe a penny more than is returned to the lender from the proceeds of the short sale.

There are ways to get money from the buyer, there are programs available, there can be a promissory note for the deficiency balance. There is never just one answer or option from Short Sale Facilitators. There will be many scenarios and answers to choose from.

Short sales can help relieve financial stress

Short sales can help relieve financial stress

Do Short Sales Eliminate Debt?

The best part of a short sale is the relief felt when the home is sold and the debt of the mortgage is off a homeowner’s shoulders.

The homeowner can sell the property for the most amount of money possible through the sale. The proceeds are returned to the lender. The home is out of the way, out of sight, out of mind, off your plate, in the past.

Is a Short Sale Short?

  • A short sale is one that is completed within a short timeframe or quickly.
    • FALSE. A short sale takes at least 30 days and usually more than a traditional sale to close.
  • A short sale is a home that is sold for less money or at a sales or discounted price.
    • FALSE: However, due to the poor real estate market, a home sold in a short sale is often sold for less than what is owed to the bank. An upside down property may sell for less than what a person owes the bank, but at its maximum value. It is not sold at a low price to sell quickly.
  • A property that is sold with fewer rules or regulations, reviews or inspections or “as is” or “for sale by owner” and can circumvent the usual real estate rules.
    • FALSE: A seller goes through the same inspections as for a traditional sale following all Florida real estate rules and restrictions.

Do Cash Deals Speed Up Short Sales?

Cash Deal Does Not Mean Faster Closing

Cash Deal Does Not Mean Faster Closing

Many buyers, sellers, homeowners, investors, realtors and lawyers may think that buying a short sale with cash makes the sale go more quickly. The only beauty of a cash transaction is that it can close right away. But what people don’t understand is that it will take the same amount of time to close whether it’s cash or whether it’s financing that’s involved.

The beauty of cash over financing for a short sale is that depending on the institution that is being dealt with, the lender’s financing can take a little bit longer. Ever since the market crashed even conventional loans which used to take six weeks began closing in two or three weeks when the market was hot.

Closing a short sale in 30 days is NOT common. With lenders scrutinizing every loan and buyers having to come up with more cash for a purchase a myriad of problems can come up surrounding the money needed to buy a short sale.


How Can Short Sale Facilitators Help?

When the banks started going under and conventional loans were taking a month, a month and a half, the financing for short sale financing changed too. If a buyer is seeking financing then the only obstacle is if the buyer is unable to get their financing done within the 30 day timeframe that the short sale lender is giving them to close.

Now, some lenders are giving 40 days, sometimes more to see if that buyer can get financing, get approved and get closed. That’s the only other obstacle. So if Short Sale Facilitators sees that the day that an approval letter is expiring but the buyers are not able to get their financing, Short Sale Facilitators will think outside of the box.

These deadlines and details are aspects of short sales that Short Sale Facilitator specialists have to be prepared for and that they know exactly how to respond to them.

What this situation calls for is Short Sale Facilitators having to work with that short sale lender and simply ask for an extension. Alma Korshak and her team of specialists make it happen.

“I’ll tell them, I’m sorry but, the buyer still needs time to obtain financing,” Alma said. “Can we have approximately another week or two to get their financing in order? Can you please give me an extension to my approval letter?”

“That can take anywhere from a couple of days, sometimes a week. No big deal. Done.”

Do All Short Sales Work Out?

Short Sale Facilitators owner and specialist Alma Korshak says no, not all short sales work out. The success of a short sale depends upon who is the seller’s negotiator. All short sales are different and not one is the same.

“While you may have certain thoughts about the knowledge of what can happen, I have more,” Alma said. “I know how to tackle and overcome every problem that you can throw out to me. There’s always a solution with short sales. My job is to find that solution.”

Real estate agents are very educated and thoroughly knowledgeable about a short sale and realtors are very easy to deal with because they understand the challenges. Even realtors and lawyers who are not familiar with short sales do know that short sales are headaches.

“Are they headaches? Of course! But I have a passion for short sales,” Short Sale Facilitators Alma Korshak explains. “I love the challenge. I love the rewarding part of a short sale: Getting my sellers money to relocate. Getting deficiency balances waived. Meaning that that the lender will not try to come and collect at a later date.

“Their nightmare is my passion: the more challenging it is the better it is. I know how to do this. I already know the problems, your problems—and I know how to solve them.”

What About Home Owners Association Fees?

A constant problem that comes into play is when a homeowner has an HOA, a home owners association that is owed a lot of money. That’s why Short Sale Facilitators encourage homeowners to keep up with their HOA fees–if they do nothing else–because if that HOA gets together and decides to come after the homeowner for late fees, watch out.

The amount owed by a homeowner to an HOA can quickly go from $500 to $3,000 to $8,000. There is a possibility that the lender will want a seller to bring cash to closing just to pay that HOA fee.

The institution pays everything but if you have an HOA that is totally out of control, then yes, a seller may have to come up with that money.

There is no crystal ball or Short Sale Facilitators would know what will happen every time with all the lenders but every case is different. But Short Sale Facilitators will have exhausted all the other possibilities. And sometimes they get into very creative situations. If the sellers don’t have the money, the buyers may be asked to pay toward the HOA fees. The HOA fees can be high on occasion when they are ignored for a long time.

“I saw this was happening one evening so I called the buyer’s agent—that night–and I said, ‘this is what’s happening, we have an issue. The home owner’s association fees are $3,000. I’m sorry to tell you this but there’s nothing that I can do because I need to throw the ball into your court. What can you do to make this short sale happen?

“You have the listing agent, the buyer’s agent, buyer and seller and me. I find that buyers will kick in, lenders, because after reversing a foreclosure after doing all the hard work I do not want to kill the deal.

“And after working on it for a year, after all that time, the buyer contributed money to the deal to get it done and the realtors made their money in the end. Done.”

Get honest answers to your short sale questions by contacting Alma Korshak of Short Sale Facilitators in Florida. 321-397-5505.

What Are the Financing Challenges of Short Sales?

When the banks started going under and conventional loans were taking a month, a month and a half, the financing for short sale financing changed too. If a buyer is seeking financing then the only obstacle is if the buyer is unable to get their financing done within the 30 day timeframe that the short sale lender is giving them to close.

Now, some lenders are giving 40 days sometimes more to see if that buyer can get financing, get approved and get closed. That’s the only other obstacle. So if Short Sale Facilitators sees that the day that an approval letter is expiring but the buyers are not able to get their financing, Short Sale Facilitators will think outside of the box.

These deadlines and details are aspects of short sales that Short Sale Facilitator specialists have to be prepared for and that they know exactly how to respond to them.

What this situation calls for is Short Sale Facilitators having to work with that short sale lender and simply ask for an extension. Alma Korshak and her team of specialists make it happen.

“I’ll tell them, I’m sorry but, the buyer still needs time to obtain financing,” Alma said. “Can we have approximately another week or two to get their financing in order? Can you please give me an extension to my approval letter?”

“That can take anywhere from a couple of days, sometimes a week. No big deal. Done.”

What Short Sale Programs Are Available?

There are several programs that homeowners can take part in. It is the job and responsibility of Short Sale Facilitators to provide options that will help the homeowners as they proceed with a short sale. Short Sale Facilitators will find out if sellers qualify and what they qualify for and it changes because there is so much help available for troubled homeowners.

One of these programs is offered by the government called the Home Affordable Foreclosure Alternative (HAFA).

Home Affordable Foreclosure Alternatives (HAFA) is designed for homeowners who can’t afford their mortgage payment. HAFA provides a short sale option where the mortgage company lets you sell your house for an amount that falls “short” of the amount owed to the lender.

  • If a seller qualifies, a HAFA short sale completely releases sellers from mortgage debt after selling the property.
  • This means sellers are not responsible for the deficiency which is guaranteed to be waived by the servicer.
  • In a HAFA short sale a mortgage company works with you to determine an acceptable sale price
  • HAFA has a less negative effect on your credit score than foreclosure
  • HAFA may provide money for relocation assistance
  • With the HAFA program, the first lien holder on a loan, the seller, is eligible for a relocation fee of approximately $2,000 to relocate from the home that is sold via short sale.

Participation in HAFA depends on the type of loan a homeowner has. Is it Fannie Mae? Fannie Mae is still a participant of HAFA.

In regard to the relocation fee, Short Sale Facilitators will also go and ask the lender for relocation fee and it’s up to their discretion how much they want to give the seller.

Short Sale Facilitators has to be apprised of all the programs that a seller may qualify for. What type of program they qualify for is based on what type of loan they took originally when they bought that property. What kind of loan was it? Who’s the investor? Fannie Mae? Freddie Mac? Is it an FHA? Is it a VA? When Short Sale Facilitators get that file from a realtor, a lawyer, a homeowner we need to know who owns that loan?

In order to be a HAFA participant, for example if it’s Bank X and there is a second loan from Bank Y? If Bank Y doesn’t participate in HAFA, HAFA is not possible because the institution has to participate in the program.

With HAFA a lender has to be willing to waive any and all deficiency balances. If that second lien holder isn’t willing to do that, the seller is not able to participate.

In this instance for example, Bank X will say, “well, I’m sorry, I guess this will have to be processed as a traditional short sale. This can no longer be a HAFA short sale.”

Short Sale Facilitators doesn’t stop, however they will still everything they can do for you, and will even go so far as to try to settle it, but the banks can be very unreasonable in what they’re looking for.

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