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Q. Do I have to stop making my mortgage payment to do a short sale?
A. NO! Often times, sellers who are nearing the point of trouble will fall behind on their payments intentionally thinking it will help with the short sale or mortgage modification process. It does nothing except for further ruin your credit. You do not have to be in default on your mortgage for a short sale, but you must have proven hardship and be in immediate danger of default
Q. Other companies charge for their short sale services and you do not. Why?
A. According the North Carolina Attorney General "It is ILLEGAL to charge up front fees for mortgage modification (and short sale) services". As REALTORS®, the bank pays our fees and that of the closing attorney, taxes, etc.
Q. How long will it take to get my short sale approved?
A. It depends on a number of factors including who your servicer and investor are, the type of loan program you have, the number of liens you have, if your loan had mortgage insurance, etc. Conservatively, plan for at least a 30-90 days approval period for a short sale in most cases.
Q. Can I hire a third-party negotiator to assist in my short sale?
A. According to the North Carolina Real Estate Commission, the only parties that are allowed to negotiate short sales in the state of North Carolina are: 1. Your REALTOR®, 2. You the seller, or 3. Your Attorney.
Q. I have been approached by a number of investors saying they will help. Is that what you do?
A. NO. The "investors" place your home under contract, attempt to negotiate an extremely low price with your lender, and at the same time resell the home to a buyer at a higher price. This can be construed as SHORT SALE FRAUD and most lenders are blocking this practice. You should avoid these people at all costs.
Q. What if I want to remain in my home. What should I do?
A. Aside from directly contacting your lender and requesting a mortgage modification or forebearance, visit http://www.ncforeclosurehelp.com and locate your nearest Community Counselor and arrange a visit. Their help is absolutely FREE and they are the best and the only LEGITIMATE resource for mortgage modification services.
Q. What if I paid for mortgage or short sale modification services in the recent past. What should I do?
A. Contact the North Carolina Attorney General's Office and file a complaint.
Q. When can I leave my home if I'm facing a possible foreclosure?
A. It is not recommended for you to move before the sale of your short sale. A vacant home can be considered abandoned by your lender and many have been known to gain entry to vacant homes, rekey, and secure the home at your expense. Also, there may be tax implications for moving and changing your primary residence.
Q. I did a short sale, I was an owner occupant, and yet I received a 1099 for the balance owed. Why?
A. The Mortgage Debt Relief Act of 2007 allows tax payers to exclude income from the discharge of debt on their principal residence from 2007-2012 and up to $2 million. File IRS Form 982 to see if you are eligible to exclude that debt.
Q. If I get nothing from the sale of my home, why not just let it foreclose?
A. It's a roll of the dice. You lender has the right, especially in 2nd mortgage situations, to file a deficency judgment against you up to 10 years after the foreclosure date. With a short sale, we are able negotiate that away or to minimize the impact going forward.
Q. Won't a short sale hurt my credit?
A. And not paying your mortgage and foreclosing won't? If you are planning a strategic default in order to save your credit, that's not a reality.
Q. When can I buy a home again?
A. It depends on the type of loan that you had. Check out a blog post I wrote on this subject as it provides the details.
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Promissory Notes
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