Frequently Asked Questions

What is a Short Sale or Short Payoff?
A short sale (also known as a short payoff) is when a lender or lenders accept a discounted payoff on an existing mortgage and agree to allow $0 in closing for the homeowner to avoid the cost of a foreclosure.  In other words, when a homeowner owes more than can be collected through a real estate sale, a short sale allows them to sell their property to avoid a foreclosure for themselves and the lender.

What banks (lenders) would allow a short sale to take place?
All mortgage companies and lending institutions will allow a short sale to take place. 

First, banks and lending institutions don’t like bad loans on their books. Second, these organizations are not in the business of selling real estate. Third, it may cost them considerably more time and money to sell these properties at the conclusion of the foreclosure process.

Therefore, if opportunities emerge in which lenders can sell distressed properties without registering big losses, they will do it.  For example, consider that a homeowner with a $200,000 mortgage is late on his or her loan payments and is facing foreclosure. With the consent of the homeowner, you offer his or her lender $150,000 as full payment for the loan, which is accepted. That means you instantly save $50,000 on a real estate investment.

This is a short sale.

When is the best time to look into a short sale?
As soon as possible; if you are behind on your payments and are receiving notices from the lenders, their attorneys, local or state courts, and the sheriff’s office (if applicable) --- IMMEDIATELY.  Many people on the verge of financial distress tend to procrastinate until the threat reaches epic proportions.  The earlier the better, more time increases the chances of a beneficial outcome.  While you may think you have no choice, other than staying in your house and letting the bank foreclose, YOU DO HAVE A CHOICE.   We can help you negotiate a short payoff arrangement with your lender.

How much will this cost me (the homeowner)?
We charge $1500 to negotiate a short sale. Payment plans are available on a case-by-case basis. If we are successful, we also charge a transaction fee (a percentage of the sale price) to be paid at closing. The lender usually pays closing cost fees including our transaction fee, upon successful completion of the short sale.

A $500 initial fee to begin the process is non-refundable.