Faqs | The Snyder Group


Question and Answer

What is a Short Sale?

What is a Short Sale?

Simply put, it is when the mortgage lender (or bank) agrees to sell the property for less than what is owed by the home owner on their mortgage. In essence, the bank agrees to take a “short” on the amount owed.


Is a Short Sale right for me?

Usually the answer is yes. A FREE consultation with our attorney and I will bring clarification to this question. From the lenders perspective, they usually want to cooperate with the short sale and settle this matter rather than foreclosing on the property. The cost for the bank to foreclose vs. do a short sale is in the $50,000 range per property. This is a major incentive for the bank to cooperate with a short sale.


How much does the Short Sale cost me?

Very little. The lender pays for all the fees involved in the short sale process. If your home is in an HOA (Home Owners Association) you will have to pay for HOA documents and the HOA demand, which is roughly $100 – $300.

Why do most people choose to do a Short Sale vs. a Foreclosure?

  • With a successful short sale you are able to buy another home within 2 years, where as thru foreclosure it can take up to 7 years to qualify for another home loan.
  • We are usually able to negotiate a full release of the deficiency judgement, where as in a foreclosure the bank has the right to come after the home owner.
  • The home owner is able to stay in the property longer than in a foreclosure.

How long does the Short Sale process take?

A short sale takes approximately 60 – 120 days to get the approval from the lender, sometimes longer. This complicated process takes time, so to have the option of a short sale, you must contact a real estate professional early on so you are being paced and do not loose the home to foreclosure because you wait to long to reach out to a real estate professional.

Do Lenders approve all Short Sales?

No. That is why it is critical to work with someone that has extensive experience at negotiationg and getting short sales approved. We have over 3 years experience with all the major banks and know how to package the file properly to make the process run smoother. In addition, we have relationships with negotiators at the banks that we can contact if issues arise.

What do I have to do?

Very little. We negotiate with the banks, list your home and manage the entire process You will need to sign documents and provide some paperwork as well. Click here to see all the required paperwork needed to get a short sale approved.

What about deficiency judgements and legal ramifications?

Deficiency judgements occur when the lien holder sues the borrower for the remainder of the balance owed. Unfortunately, many realtors neglect to address and negotiate to get a deficiency release in the short sale approval letter. This puts the home owners at risk. We really need to have this discussion over the phone to better advise you, and possibly get our FREE in house attorney on the call to further evalute your situation.

Can the government tax me for the loss involved in the Short Sale?

Yes. If the home is your primary residence and you only have 1 loan you should have no exposure to this base on the 2007 debt forgiveness act, click here for more information on this. Depending on your situatuion it may be best to consulty with our in house legal team and a CPA.

Should I seek legal counsel?

In many cases yes. We have FREE in house legal counsel that can put your mind at ease with the complicated process.

What other options might I have at this point?

  • If you have equity, sell the home
  • Bring the mortgage current by making the missed payments with penalties
  • Refinance your mortgage with another lender
  • Do a loan modification
  • Died-in-lieu of foreclosure. Click here for more information on this process.
  • Let the property foreclose

If you can do any of the first 4, then you may want to strongly consider one of these options. These are usually the best options for a homeowner in default. However, if your not able to do one of the first 4 options, you should contact me immediately.

What should I do once I’m behind on my mortgage payments?

Don’t wait, get help early! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. If you even see the possibility of missing a payment, contact your lender and explain your financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues that impede your payments, providing your lender an incentive to find a proper “work out” resolution, or to begin modifications to your loan.

What is the timeline for the foreclosure process?

This will vary drastically based on the bank holding your mortgage. To best pace you on this contact me for more information. The legal process is the bank will send out a NOD (Notice Of Default) after 90 days, then legally the bank can send out a foreclosure sale date 120 days after the NOD is filed. The sale date is about 30 days from the date you receive the certified “notice of trustee sale”.

Once my home forecloses how soon do I have to move out?

There is a legal process that has to be followed. Basically, the eviction process is initiated by posting a 3-day Notice to Quit on the property. If there is no response, the new owner will file a 5-day Eviction Notice with the court. If there is no response by 5pm on the 5th day, the constable will evict the resident. For more information please contact me.

Do you have any other advice for me?

Always be wary of potential scams

Any person or company offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scammer include anyone who charges a fee before any services are completed.

Most importantly I encourage you to educate yourself as much as possible about your situation and seek advice from an experienced real estate professional, attorney, and possibly a CPA to best understand the perils and pitfalls of the options.

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