A Few Definitions Related to a Texas Short Sale
REO (Real Estate Owned): This is what property is called once it is taken back by the bank and placed into their inventory.
Foreclosure: The legal process by which the lender forces the sale of a property because the borrower has not met the mortgage terms.
Pre-Foreclosure Sale (PFS) / Short Sale: When a property is sold and the lender(s) agree to accept a discounted payoff, releasing the lien that is secured by the property.
Loss Mitigation: A department set by a lending institution set up to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his loan.
Why Are Properties Foreclosed On?
Job Loss: Due to economic conditions, Texas (TX) employers are having to release great employees because of many factors. These employees may not have the financial reserves to withstand many months of not receiving a paycheck. Some of these employees are finding new work, but at a lower pay rate than what they have received in the recent past.
Health: People fall ill and they make the decision to pay doctor's bills in lieu of the mortgage.
Adjustable Rate Mortgages (ARM's): These are those loans that reset (the interest rates adjusts typically higher) and drive the monthly debt payments up.
Do I qualify for a short sale?
- Are you behind on your mortgage or facing default or foreclosure?
- Are you in a financial hardship of any kind? This can include, but is not limited to, relocation, loss of income or job, divorce, illness or death in the family, house in need of major repairs, increased bills or expenses?
- Has your mortgage payment depleted your savings?
- Are you in a situation where you MUST have your home sold?
- Can you not sell your home due to a mortgage balance greater than your property value?
If you answered 'yes' to any of the above questions, then you may qualify for a short sale.
Does a short sale cost me anything?
Nope! Your lender will pay all the realtor's fees as well as the closing costs.
If we do a short sale, will the lender expect me to pay the amount that they lost in the transaction?
Usually, no. Our agents will work to secure a full release for you at closing. Some lenders will request an unsecured loan be taken back, but the majority are forgiven in full.
Doesn't a short sale take a lot of work?
It will not take very much work at all for you. We will ask you to gather certain financial information and forms, and our agents will handle the negotiations and details with your lender as well as the process involved in selling your home.
How do I benefit from a short sale?
A short sale helps to relieve the stress of being in foreclosure. You can get rid of your mortgage payment and move on with your life while ending the harassment from your lender. The homeowners that are helped are tremendously thankful to be relieved of the burden the foreclosure has caused. A short sale also prevents additional damage to your credit. Some late payments have already done some damage to your credit; however, a foreclosure will do much more damage and lower your credit score even more. Also, it is important to note that we provide our short sale service at absolutely no cost to you.
I Am Thinking About Applying for a Short Sale....What Should I Do?
1. If you are 31 days or more past the due date of your loan, and your property is located in Texas (TX), Contact Us Today! We know that this is a trying time for you, and you really don't want to deal with it. Perhaps you are embarassed, or just 'hope' that these problems will pass - but unless you do something about them, they won't. Depending upon your situation and your lender, we may be able to sell your home even though you owe more than it is worth. You may even be eligible to receive money back at closing!
2. Once you have initiated contact with us, we will 'qualify' you and your Texas (TX) property to determine if your property is a good candidate for the short sale process.
3. Once it has been determined that your property is a good candidate, we will perform a Comparative Market Analysis (CMA) to determine our best opinion as to what your property will sell for in the 'retail arena'. You will then sign the paperwork agreeing to have Region Realty represent you in this transaction. We will aggressively market your property - initially to investors with whom we have relationships with - and then to other buyers.
4. Once an offer has been received, we will begin our negotiating process with your lender(s). We will handle this process for you...taking that additional burden off your shoulders.
5. Once the lender has accepted the offer, we handle your process all the way through closing...keeping you in 'the loop' throughout the entire process.
I Have Received a Notice From My Lender Stating That They Will Foreclose on my Texas (TX) Home Within 21 Days - Is There Hope?
Yes, there is still hope. But You Must Contact Us Immediately!
I Owe More on my Texas (TX) Home Than What it is Worth - Am I Eligible for a Short Sale?
Yes, you are. This is the case of MANY short sale clients in Texas. They are typically the victim of a 100% loan (aka: 80/20, 70/30, etc...).
Is it possible to stay in my house during the short sale process?
Yes. You will not have to move out until the closing. In fact, if you are facing foreclosure and our agents are actively working with your bank, we can typically get your lender to delay the foreclosure proceedings and make it possible for you to stay in the home for some time.
My mother-in-law is a Realtor. Do all Realtors know how to work short sales?
No, they do not. Working a short sale in Texas is not an everyday occurrence for most Realtors. The only way to proficiently work one is through time and experience.
Is there a certification for Realtors that concentrates with Short Sales?
Yes, the National Association of Realtors has awarded the broker of our agency the Short Sale & Foreclosure Resource certification.
Are short sales guaranteed to work?
No, short sales are not guaranteed to work. The lender is not 'required' to take any of the offers that it receives.
What if the short sale is not accepted?
If the lender does not accept the short sale offer, there is no sales transaction, and the home is still owned by you and the foreclosure process will continue.
The most important thing for you to realize right now is that there is hope...there is light at the end of the tunnel. You need to act fast, and you need to act now. Please contact one of our Dallas Short Sale Specialists, Fort Worth Short Sale Specialists or Houston Short Sale Specialists either by the form below, or calling us directly at (972) 980-8811.
Learn more about the Texas Short Sales process.