Balance Realty Group
Helping Homeowners Stop Foreclosure
What is a Short Sale?
In a short sale, a financially insolvent homeowner who is facing foreclosure sells his home for less (or short) than the value of his loan. The lender accepts the sale as payment in full for the loan and seller escapes foreclosure. Moreover, the lender does not report a foreclosure to credit bureaus.
Why should a seller consider a short sale? |
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If you have received a Notice of Default on your property, know that we have helped many who have experienced this same situation. You may be harassed, embarrassed and somewhat fearful, and have little knowledge about the rules of the game. Over the years, we have helped many turn this stressful situation into a positive one by going through a short sale. Balance Realty Group has a proven track record in negotiating with lenders to remove fees, late charges, and in most cases, to get the lender to discount the amount due with no future deficiency judgments and completely hold you harmless.
Be prepared to provide the full financial disclosure required by the lender when considering your request for a short payoff. Documents that will be needed include: two years worth of federal tax returns, two months bank statements, pay stub, and a letter of explanation as to why your requesting a short payoff. Also, we will need authorization on your account to negotiate the terms of the payoff on your behalf, so you don't have to deal with the stress and complications of the process.
Check out our testimonials page and ask us for documented results of past success. We want to help you not face foreclosure and future lawsuits. Balance Realty Group's short sale system with keller Williams is the best in Tampa Bay - and that's the bottom line.
FORECLOSURE VS. SHORT SALEHomeowner Consequences |
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| Issue | Foreclosure | Successful Short Sale |
| Future Fannie Mae Loan – Primary Residence (effective May 21, 2008) |
A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. | A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. |
| Future Fannie Mae Loan – Non-Primary Residence (effective May 21, 2008) |
An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. | An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years. |
| Future Loan with any Mortgage Company | On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will affect future rates. | There is no similar declaration or question regarding a short sale. |
| Credit Score | Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. | Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be a brief as 12 to 18 months. |
| Credit History | Foreclosure will remain as a public record on a person’s credit history for 10 years or more. Short sale is not reported on a credit history. There is no specific reporting item for 'short sale'. | The loan is typically reported 'paid in full, settled'. |
