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What is a Short Sale?

A Short Sale is a negotiated settlement with your mortgage lender which allows you to sell your home for less than you currently owe. In most of our Short Sales the remaining debt is forgiven, and there are no tax consequences.

Can I do a Short Sale with multiple loans?

Yes. In general the lender who is in the first position gives a small percentage of the proceeds to the other lien holders, as a full satisfaction of the claim.  

If I complete a Short Sale, will I have a tax conseqence with the IRS?

Over the years only a small percent of our clients have had to pay any income taxes, which is usually the result of their personal accountants not filing properly.

Do you handle Short Sales in all States?

Yes. Settled For Less, Inc. has been doing Short Sales for over 20 years. We have experience working on Short Sales throughout the United States.

Will the bank come after me for a deficency (the difference)?

One of the main reasons to do a short sale is to get a release of personal responsibility from the lender(s). We make sure that you receive the  "right verbiage" in your approval letter to acomplish this.

Do we need a lawyer to successfully complete a Short Sale?

Yes, but unless the attorney specializes in Short Sales the result may be less than favorable. At Settled For Less, Inc. we include qualified, experienced attorneys at no additional expense.

How long can I stay in my home?

Most borrowers are not ready to relocate because they do not have enough money. Settled For Less, Inc. will work with you while you get current with household bills and are able to save up enough money to relocate.

Do I have to be at the closing?

If you are unable to attend the closing, A Power of Attorney can be completed so you do not have to be present.

If I am no longer living on the property, do I need to keep paying utilities?

No. As long as the property is winterized there is no need to continue to pay the electric and heating bills.


If I am not living in the house, do I still have to maintain the property?

We always suggest that a seller keep the grass cut to avoid local fines. However, if that is an issue we can work around it.

Do we have to stop making our mortgage payments to do a Short Sale?

No. However, the homeowner needs to demonstrate that they have more expenses going out than coming in.

Can I collect rental monies during a Short Sale process?

Yes. The tenants can remain, and you can collect the rental income thoughout the process.

Do I have to continue to pay Homeowners' Association Fees?

Yes. During the Short Sale process you must remain current on your HOA dues to avoid any judgements from being placed on your property. Property taxes and homeowners insurance will be paid by the lender.

Can the lender reject a short sale offer?

Yes. The offer is subject to a B.P.O. (Broker's Price Opinion) which is the banks appraised value.

Why is it so difficult to sucessfully complete a Short Sale?

Short Sales include many different parties and processes to manage. If it is not strategically handled correctly than it will not go through.

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