A short sale is an agreement with the lender(s) to accept less than the amount owed by a borrower via a sale of the property to a non-related third party. When a borrower is faced with a hardship, has fallen behind (or is likely to fall behind) in the mortgage payments and the home cannot be sold for the amount owed to the
lender(s), a short sale agreement may be an alternative for distressed homeowners. SSA negotiates with the lender(s) to accept a payoff of an amount allowable by the market conditions. The lender(s) then receive the complete proceeds of the sale and discharges the remaining debt.

Whether the lender chooses to go through with a foreclosure or agrees to a short sale, they are taking a loss. However, lenders are not in the business of owning and managing properties; in many cases they would take less of a loss with a short sale and resolve the matter in a shorter timeframe. A short sale gives the lender the ability to cut its losses upfront and avoid a potentially greater loss through the expense and time of a foreclosure; the benefit of working with SSA is that we diligently negotiate to secure an equitable resolution with your lender.

To qualify for a short sale, you must be able to prove to your lender(s) that you are a victim of a "hardship" and therefore unable to continue making payments on your mortgage. Qualifying for a short sale is dependent on individual circumstances. If you answer "yes" to the following questions, you may be a good candidate for a short sale:

• Have you experienced an unforeseen hardship since you obtained financing for your property?
• Do you owe more on your property than the amount your home could sell for in the marketplace today?
• Do you have significant difficulty in making your monthly mortgage payment?

A hardship situation is one that is the result of some extenuating circumstance that leaves the borrower unable to afford their mortgage payments. While each situation varies, some frequent examples of hardship include:

• Divorce or Separation
• Health issues or medical bills
• Job Loss or reduction of income
• Death of spouse or wage earner
• Adjustment in Mortgage payments
• Employment relocation
• Failure of Business

The above list is not necessarily inclusive of all circumstances that a lender may consider a hardship. If you have any questions about a hardship, please feel free to contact us at 877.626.0668.

All short sale situations are unique and follow their own timeline, but a general estimate is 2-4 months. Many variables are associated with the timeframe:

• How quickly an offer is generated and accepted by the seller
• How quickly the lender responds to the offer (dependent on the quantity of other short sales the lender is processing)
• How many lien holders need to provide approval

Time is of the essence; short sale situations tend to be time sensitive and consuming for negotiations and the sooner SSA is able to begin negotiating, the greater the chances of a successful resolution. If you foresee trouble in making your monthly mortgage payment, you should begin considering your options. The best time to begin the short sale process is before you miss your first payment to allow more time for lender approval; there is no need to wait until the lender sends you a notice of default or initiates formal foreclosure proceedings. If a Notice of Default has been filed or a Trustee Sale has been set, contact us as soon as possible. It is not uncommon for a lender to postpone a Trustee Sale when presented with a pending offer.

Contact us today or speak with your real estate professional to let them know you'd like SSA to negotiate your short sale.

If you lender(s) approves a short sale, you do not need to vacate your home until it closes escrow.

We are not credit experts and speculation varies greatly as to the impact a short sale will have on a credit report. In a short sale and foreclosure situation, the delinquency of the mortgage will likely have a negative impact, but it is generally understood that a foreclosure will have more serious affects on your credit. Some mortgage and credit experts suggest that a foreclosure may impact a credit score up to 250 points, while a short sale may result in a reduction of 100 points or less.

In December 2007 the Mortgage Forgiveness Debt Relief Act was signed into law by President Bush. This law eliminates potential tax liability associated with a short sale depending on the specifics of your particular situation. On a state level, a taxpayer may or may not face tax consequences, again depending on individual circumstances. Although we have some resources available
here, SSA is not a tax or legal advisor; a homeowner should seek professional tax and legal advice.

SSA believes that by working with our local real estate agents, our clients truly have an advantage to having a successful short sale and fresh start. By negotiating directly with the lender(s), SSA understands the requirements of various lenders. Additionally, we coordinate between all parties involved (lenders, real estate agents, and escrow personnel) to guide a short sale from offer to approval and then to close. Our experience in working with short sales is our greatest asset and we are confident that you will find a personal advantage in working with SSA!

SSA's services are often paid by the real estate professional, however our fees are negotiable between the parties involved. It is important to note that SSA only receives compensation upon the successful close of a short sale transaction.

Most Loss Mitigation Departments are understaffed and overloaded with countless cases. Unfortunately, loss mitigators can be very difficult to reach and when you finally do make contact, you have very little time with which to make your appeal. Furthermore, the stress of the situation makes it difficult for a homeowner to effectively negotiate their way out of foreclosure.

Short Sale Advantage works as a neutral third-party short sale negotiator; this is truly an advantage when speaking with lenders because we seek the best outcome for all parties involved. Our experience and professionalism ensure homeowners, real estate professionals and lenders receive complete satisfaction throughout the short sale process. Additionally, because we work with countless lenders, we understand how to effectively gather and present the information that lenders require. We have excellent working relationships with the Loss Mitigation Departments and we leverage our network and expertise to help resolve the current situation.