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When a consultant company operates professionally, its services can make a difference in the success or failure of distressed sales, practitioners say. "They've been trained, they have relationships with banks, they provide good follow-up, and they know who to talk to"

SELLER FREQUENTLY ASKED QUESTIONS AND ANSWERS

What is a Short Sale?
A short sale occurs when a lender accepts less than what is owed on the mortgage to end the foreclosure process.

Why Should I accept Such a Low Offer On My Property?
What difference does it make? To sell quickly, you must list the property at or below current market value, not what you wish you could sell for, or what you think the property should be worth.

Do I have To Pay An Agent?
Only if you have hired one. If there is an agent involved, and the proceeds from the sale will cover the fees and costs. There should be no money coming from the seller on a short sale.

Will I Get Any Money From The Sale?
Not usually. Most lenders will not allow a borrower to receive any money. If the lender thinks you are getting paid from the sale, they will immediately kill the deal.

Will The Bank Come After Us For The difference?
Unless you have great credit, are not delinquent, or have significant assets, most banks will not. A lender usually releases liability of the mortgagee in writing.

Why Do I Have To Provide Personal Information?
Unless you have great credit, are not delinquent, or have significant assets, most banks will not. A lender usually releases liability of the mortgagee in writing.

I Heard The IRS will 1099 me for the Amount Of Debt Forgiven, is this true?
The Mortgage Relief Debt Act of 2008 does not permit lenders to issue a 1099 to a borrower for a deficiency balance on a primary residence.

Will A Short Sale Destroy My Credit?
Yes and no. The short sale may not show up on your credit. In fact, most mortgage trade lines report “Mortgage Paid” after a short sale. Any late payment history will still appear, as will any Notice of Default filings. What won’t report is an actual foreclosure. A promissory note may prevent the lender from reporting the mortgage as a loss. In today’s credit market, a foreclosure may prevent you from obtaining a mortgage for at least 5 years, longer than a bankruptcy.

How Long Will This Take?
This is totally up to the lender. Some lenders take as little as two weeks, some over six months. The only way to know is to start the process. The key is making sure that your short sale package is complete, and that you follow up daily with the lender.

"This disclosure is to give you notice that there is an affiliation by and between one or more of the following entities: The Law Offices of Charles J. Malki, P.A., Mortgage Associates, Real Estate Associates and Title Associates. Because of these relationships, one or more of these entities may receive a financial or other benefit as the result of this referral." (Source: Real Estate Settlement Procedures Act)

Maxim Realty Solutions is owned by Rich Vecchio Owner/Broker of Realty Associates and
retains The Law Office of Charles J. Malki & Associates as in-house counsel

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