Phoenix Metropolitan Area Real Estate  |  602-840-8484

Short Sale FAQ

SHORT SALE FAQ

Q:   I’m struggling to make my mortgage payment.  What are my options?

A:    Because so many other people are struggling just like you, there are a number of options available for consideration.  Of course, the best option for you will depend upon your unique circumstances.  Therefore, it’s best to consult with a number of experts before you make any final decisions on which course of action you will take.   Experts you may want to consult with include accountants, attorneys, your mortgage company and aCertified Short Sale Negotiator (CSSN) like Tom Henschen. 
 
Q:   What if my house is worth less than I owe, I can’t get a loan modification, and I’m unable to make my mortgage payment?

A:    First and foremost, don’t panic.  Due to the recent economic downturn, many people are in the very same situation.  Although you may be threatened with foreclosure, it’s certainly not your only option.  For example, you can consider a short sale.  (See: 10 Smart Reasons to Consider a Short Sale)  A short sale often allows you to sell your home for less than you owe, and walk away from the sale without any lingering obligations.  But time is your enemy, so don’t wait to get started.  Call a qualified Realtor® like Tom Henschen and Associates today to answer any questions you may have regarding the benefits, the consequences and the overall process of a short sale.

Q:   How do I know if I qualify for a short sale?

A:  Short sales do come with conditions, so this is a very good question to ask.  Before moving forward, consider the following three criteria that mortgage holders typically look for with a short sale:

        1.    Hardship:  In order to be approved for a short sale, individuals typically need to show some sort of hardship – an event or circumstance that has changed their ability to make their mortgage payment.  Examples of a ‘hardship’ may include, unemployment, divorce, illness, etc.

        2.    Income Shortfall:  Another element the mortgage holder will ask about is monthly income versus expenses.  Do you bring home enough money to pay your basic monthly expenses?  Perhaps you had to take a cut in pay or maybe your mortgage payment increased significantly.  The lender wants to see exactly how your income meets your expenses, on paper.

        3.    Liquid Assets:  If you have cash savings accounts that could be applied to your mortgage, the lender will be less inclined to approve your short sale.  Rather, they will want you to contribute cash to complete the short sale. 

        A CSSN (Certified Short Sale Negotiator) can provide you with more information on these important short sale qualifying criteria, based on his/her experience with different lenders. 

Q:   If I do a short sale, how long will it be before I can purchase another home?

A:
   This is really up to you.  Although a short sale will affect your credit in the short term, if you keep continue to practice good credit habits, you may be able to qualify for home financing in as little as two years. 
Q:   If I do a short sale, will I still owe money to someone?

A:
   With Tom Henschen and Associates handling your short sale, you should be able to walk away from your short sale with no additional obligations owing to the lender – and the lender should guarantee that in writing.  If the lender won't provide you with that guarantee, Tom won't recommend completing the short sale.  To ensure your success, consider hiring a Realtor® with the CSSN (Certified Short Sale Negotiator) designation.  A Realtor® with the CSSN designation has taken the time to participate in extensive training to learn the most effective negotiation techniques. 
Q:   Who should I call if I have more questions or if I want to move forward with a short sale.

A:   Email or call us at 602-840-8484 today.  As a Realtor® with the CSSN designation, Tom can answer all of your questions.  More importantly, he will work through the short sale process with you, personally and one step at a time.  He’ll get the job done! 





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