TOP 10 FREQUENTLY ASKED QUESTIONS REGARDING SHORT SALES
1. Who pays the difference between the loan amount and the sales price? Do I owe the difference to the lender?
The bank pays the difference...the entire difference. New laws in California prohibit your lender from coming after you for a deficiency on the first mortgage. However, rules against a second mortgage can vary. Each case is different, so please call me for further details- 925-242-8999.
2. Are there taxes to be owed on the forgiven debt? If so, will I have to pay these?
In 95% of the cases the answer is no. However, circumstances do vary, so please call to ensure the best answer for your situation.
3. Who qualifies for a short sale?
Just about everyone can qualify for a short sale as long as they are able to provide a legitimate hardship letter, and are upside down on their home. Please call me or refer to my Short Sales webpage for more details.
4. How long will the short sale process take?
The process will take anywhere from six weeks to three months- start to finish.
5. During the short sale process, is it true I can still lose my home to a foreclosure?
Absolutely. The bank lent you the money and they can change their mind at any time- you are not paying them back . There are no guarantees, but I have never seen this happen. I have closed every short sale I started!
6. Who determines the price of my home?
I will set the asking price on your home. However, the bank must approve the price when a buyer/contract has been presented.
7. After a short sale, will I be able to buy a home in the future?
Yes! There are new guidelines changing monthly. Congress is passing new laws to stimulate the buying process. If you lose your home in a foreclosure, it will take years to re-enter the market with a conventional loan.
8. What does an "arms length transaction" mean?
This merely means you cannot short sell your home to anyone you know, especially a relative. For example, you cannot sell your home to your parents and then rent it back from them!
9. Are there any additional fees during a short sale? Agent commissions, etc.?
There is absolutely no cost to you the seller. It is against the law for a seller of a home to give any money to a bank's realtor or a buyer.
10. Who is the best person to speak to for more information and help with a short sale?
Me, Don Magalhaes, your short sale expert! Call me today- 925-242-8999
