Short Sale Questions and Answers

As previously printed here are some additional Short Sale Answers for Napa homeowners facing foreclosure.

Why do a Short Sale as opposed to a Foreclosure?

In normal circumstances a short sale is usually better than a foreclosure, in that it impacts your credit scores better than a foreclosure. It also can release some liability for the unpaid loan balance that was forgiven. In today’s market the short sale should definitely be an option to be be looked at first. Be sure to remember, during a short sale listing period the lender could still have the property foreclosed upon, so make sure you contact me directly to assist you and if you are having troubles now don’t wait, the longer you wait the less options you have.

Can I Get some Financial Assistance to help cover some costs?

Under the Obama administration and the HAFA program, there is a provision that allows qualified homeowners up to $3000 in cash back to help with Relocation Costs. Not all homes will qualify for HAFA , but some banks will still offer some type of assistance. Contact Me for more information.

What is needed to Qualify for a Short Sale?

Basically one needs to show a hardship as the reason for requesting a short sale. These hardships include Loss of Job, Medical Bills, Divorce, and other forms of inability to pay the loan. The seller is selling because he needs to, due to inability to pay. If you can afford to make the payments but the home is upside down and you just want to walk away from the home be careful. Some lenders make look at the situation, whereas other will not. Contact Me to see if you will qualify.

What Happens after the Home is Sold in Short Sale? Due I have to pay anything back?

Once a home is sold during a short sale, the difference between the loan and the selling price is the loss the lender takes on the note. Depending on whether the sale was a HAFA sale or lender direct short sale it is important to make sure that the loss is forgiven by the bank. In some cases this is automatic, if the note was the original purchase money loan then state law prohibits the lender from going after the loss. The only way to know for sure is to contact us for more information and answers to your questions.

Stay tuned for more updates on your Napa and Solano short sale questions, including American Canyon, Vallejo, Beinica, Fairfield, Suisun City, Rio Vista, Vacaville and Dixon.

For Napa short sale homes click here.

For Vallejo, Fairfield, Suisun short sale homes click here.

For Vacaville short sale homes click here.