Home Help: How Keller Williams Can Help you with a “short sale”
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Q: What is a short sale?
A: A short sale is an agreement in which your mortgage holder agrees to accept a payoff on your loan for less than the balance owed.

Q: What are the main differences between the short sale and a foreclosure?
A: In a short sale, the borrower still owns the property and is the seller. In a foreclosure, the mortgage holder is the seller. A foreclosure will have a harsher impact on one’s credit than the short sale. A short sale will not only allow someone to regain their ability to qualify for a mortgage in far less time. Many times the mortgage holder will forgive the difference between what is owed and what the property sells for. Many people don’t realize with a foreclosure that even though the mortgage holder takes ownership of the property, the previous homeowner can still he held responsible (i.e. lawsuit) for the balance owed.

Q: Why would the bank/lender agree to a short sale on a home?
A: In most cases, the mortgage holder will lose less money in a short sale transaction than they will in a foreclosure transaction.

Q: Why do you call a short sale a “win-win?”
A: Everyone involved with the short sale transaction benefits. The homeowner benefits because they are able to sell their house and move on with their life. The mortgage holder wins because they recoup more than they would if the property went into foreclosure. The buyer wins because they get a great deal. The community wins because it is one less property that could bring down the value of surrounding homes.

Q: If someone finds themselves in a distressed situation, are they alone?
A: NO! They are certainly not alone! This is NOT a hopeless situation! We can absolutely walk people through that! I would encourage them to call and talk to us.

Q: What should someone do if they are behind on their payments?
A: DO NOT WAIT! Homeowners should contact their mortgage servicer to resolve the problem as soon as possible.

Q: How does a seller know if they qualify for a short sale?
A: If a person has (A) little to no equity in their home and (B) has a hardship (divorce, job loss, etc.), then they will normally qualify.

Q: Does a seller have to be behind on their mortgage in order to be approved for a short sale?
A: Not necessarily. However, the seller must prove to the mortgage holder why they can no longer afford their home. Mortgage servicers have different criteria so it is important to work with a seasoned short sale agent.

Q: Can someone complete a short sale on investment property or a second home?
A: Absolutely. The rules are about the same. However, one should always contact their accountant and/or attorney to confirm the tax laws regarding short sales and investment properties.

Q: How important is it for a seller in a short sale situation to pick the right real estate agent when working with a short sale?
A: It is very important that one looking to complete a short sale work with an experienced Realtor, primarily one who has their CDPE (Certified Distressed Property Expert) designation.

Q: If someone needs more information, where can they go?
A: Visit my website or contact me directly! www.KnoxvilleForeclosureHelp.com is packed with information about short sales. My email address is verdeaux@kw.com and my phone number is 865-694-5904 ext. 8330.
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