Following are common questions that many clients ask during our initial interview:

 What is a short sale?

  • A short sale is a type of real estate transaction typically used to prevent a home foreclosure.
  • It occurs when the Seller knows the potential proceeds from a sale of the property will fall short of what is owed on the property's bank loans, creating a deficiency balance. 
  • In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. 
  • The bank of lender will allow the home to be sold for less that outstanding balance of the loan in trade for Seller turning over all proceeds of the sale to the lender.
  • Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss to them than foreclosing on the property.

How does a short sale benefit you?

  • A short sale is typically faster and cheaper than a foreclosure and you, the homeowner, tend to have less adverse consequences both immediately and in the future.
  • You don't have to try to navigate paperwork or negotiate directly with banks, loss mitigation, or lenders by yourself. We have a negotiation specialist who handles the creditors for you and is effective at cutting through red tape to get things done.
  • You can usually avoid badly damaging your credit history because your mortgage payoff can be shown as “paid as agreed” or “foreclosure redeemed,” instead of “foreclosure.”
  • Starting short sale transaction can delay the impending foreclosure process and you can usually stay in the home without making payments during the short sale process.
  • The deficiency amount you owe the lender(s) will often be waived by the mortgage company and in many cases it can be negotiated so that a 1099 will not be issued and/or taxed.
  • The nation’s two largest mortgage investors, Fannie Mae and Freddie Mac - with certain exceptions - will usually lend to you again two years after a short sale, whereas you are forced to wait five to seven years before buying after you have a foreclosure.

Who will know my house is being short sold? 

  • Initially, only brokers and, sometimes, our short sale negotiator / investor will be aware of the short sale package on your property.
  • NC Short Sale staff will market and advertise your home using the nationally recognized signage of Keller Williams Realty.  All promotional pieces, mailings, fliers, and brochures for your property will have the KW branding and logos on them.
  • Buyers and other agents viewing your home will not be aware of the short sale status unless and until they put in a serious offer on your property.  At such point, only necessary and required information related to how to proceed with a short sale related contract will be provided to the involved Buyer parties.
  • NC Short Sale staff is committed to protecting your personal and financial information and will respectfullt represent your needs using the utmost discretion and professionalism.

How do I know if a short sale is the right thing to do?

  • NC Short Sale representatives provide you information about your real estate options and talk to you about the pros and cons of all your choices; but only you can decide what is right for you, your family, and your immediate situation.
  • In general, we encourage people to avoid foreclosure whenever possible because it is so damaging to your credit, your psyche, and your future participation in the real estate market.
  • In general, if you are behind on payments, don't think you will be able to continue making payments at the current amount, have already had foreclosure notices or delinquency hearings, and/or suspect you will eventually wind up losing your house, short sale is an option you should seriously consider.

Why would my bank or lender accept a lower loan payoff than what I owe and let me do a short sale?

  • Banks want to avoid foreclosing on you.  They do not actually want your house, even though that is what they get when they foreclose on your property.  They want their money back, or at least a portion back of what they originally lent you to buy the house.
  • Foreclosing on a house is very expensive for banks.  It can cost them anywhere from $25,000 - $50,000 per property to complete the foreclosure process... at which point they own a house.  Banks don't want houses, they want money; that is why they are open to other alternatives that give them cash for their properties in jeopardy.

I already tried talking  to my lender and they wouldn't work with me.  Why would they work with you?

  • It is our short sale negotiator's job to know who to talk to in the lending institutions and how to encourage them to take a short sale package on your home.  This is why you hire us - this is our expertise.
  • Unlike you, an individual homeowner, who has offered to make smaller payments more often or tried to renegotiate the loan terms with your bank, our short sale negotiation team make an actual cash offer on the property and gives the banks a large incentive to consider our short package.  Because we are professionals at this, the bank is more likily to deal with us than with you, the homeowner.  
  • NOTE: Not all lenders and banks accept short sale transactions and each short sale package is considered individually by a bank loss mitigator to determine if it is in the bank's best interest to allow a short sale for that particular situation.  So there is a chance that you may not be able to do a short sale on your property. 
  • You will usually know very quickly if a lender is going to reject a short sale.  This is why it is important to have us assess your home as soon as possible and find out what will and will not be accepted by your particular lender(s).

How can I pay for your services when I can't even afford to make my mortgage payments?

  • NC Short Sale staff are compensated by the lending institutions and the banks for bringing them the short sales. We do not expect to be paid by our clients.  In fact, we are only compensated if we help negotiate your short sale with your lender. 
  • In general, we are paid a commission on the final sale price of your property, similar to what we would receive if your home were on the open real estate market.
  • As mentioned above, lenders and banks don't actually want to own your house; they want private investors or buyers to pay them cash (at some loss to their bottom line) so that they can keep their books in the black and avoid owning properties.  They are willing to pay a commission to NC Short Sale staff and other short sale negotiators to facilitate that short sale transaction because it helps them as well as you.

             We do not get paid unless we get your house sold.

What if I already have my house listed with another agent?

  • No problem.  NC Short Sale staff is happy to work with your real estate agent, not around them.  Have your agent contact us as soon as possible to determine - as a group - if your house is a good candidate for short sale.
  • Note:  House Counselors representatives follow the ethical guidelines set forth by the National Association of Realtors and will not circumvent, lie to, or excluded any licensed real estate agents already actively involved in the sale of a currently listed property on the MLS.  Please have your agents contact us for further clarification.