The document provides answers to frequently asked questions about short sales. It discusses topics such as whether borrowers can receive cash from lenders at closing, how to qualify for a short sale with multiple mortgages or if payments are current, the short sale process timeline, and potential tax implications of debt forgiveness. Key details requested by lenders are explained, such as hardship letters, documents required, and reasons lenders are willing to accept less than the full mortgage amount in a short sale.

1. HOME
FAQs
WHAT IS A SHORT SALE
Can I receive cash from my lender at the closing, even though I’ll be
WHY USE SHORT SALE US
paying the lender less than the full amount due on my mortgage?
SUCCESS STORIES Yes, you can generally receive between $500 and $2,500. Lenders consider
this to be borrower’s assistance which will allow sellers to have the money
WHO QUALIFIES FOR A SHORT SALE they will need to move from the property in a timely and orderly manner.
Certain lenders view this as a borrower’s incentive to encourage borrowers to
FAQs work out a short sale versus going through the full foreclosure proceedings
which is always very expensive for lenders.
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I have more than one mortgage on my property. Will that prevent me
VALUE YOUR HOME from doing a short sale?
No, in some cases it makes it easier. Subordinate lenders are more flexible
STATE FORCLOSURE LAWS
than first mortgage holders.
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Is it necessary for me to be past due on my mortgage payments to be
HIRE US able to get the benefit of a short sale?
No, but it is likely that the lenders guidelines will prevent them from formalizing
a short sale if the loan is not past due. In cases like this, ShortSaleUS can
arrange a structured default to reduce the impact of an actual default on a
borrower’s credit report and to enable them to bridge this gap.
What is a BPO?
A Broker Price Opinion (“BPO”) is usually requested by a lender from a
qualified broker, other than one who has the listing contract on the subject
property. The lender pays the selected broker to render an opinion on the
condition, value and the projected time on market before the property may be
expected to be sold.
If lenders save significant money working out a short sale arrangement,
why do they request as much information as they do and why does it
take so long for them to work on a file?
Lenders want to be certain that a borrower is not simply trying to renege on
their mortgage because their house has gone down in value. If the borrower
has liquid funds available, lenders want the borrower to use them during the
sales process. Lenders also want to know that a borrower is not selling the
property to a related party for the sole purpose of reducing the pay off
amount. The bottom line is that the lender is going to manage the transaction
with the objective of recovering the most money possible for the lender. The
time frames involved apply a multi-step negotiation process between the
borrower and the lender with either the lender or borrower objecting to certain
terms and making proposals and counter-proposals before reaching an
agreement. Third party inspections and BPOs will also be required prior to
the negotiations being formalized with an agreement.
What is a hardship letter?
A hardship letter is written by the borrower to the lender to explain the current

2. distressed circumstances being experienced by the borrower that make it
impossible for them to continue to make mortgage payments and to ultimately
pay off their loan. Examples of typical acceptable hardships would be the
loss of employment, illness which precludes them from working or having the
need to relocate in order to find employment.
What information does the lender require from the borrower?
Each lender has different forms that will need to be completed. All lenders
generally require certain items such as; two months of bank statements, pay
stubs, tax returns for the past two years and a hardship letter.
How long does it take to complete a short sale?
The time for the lender to receive and evaluate a short sale proposal is
approximately 8-12 weeks. The time it may take to sell the property is almost
always longer than this.
Why are lenders willing to lower the amount they will accept as
“payment in full” on a mortgage loan?
They lose less on a short sale than they do in a foreclosure proceeding. On
average, lenders lose tens of thousands of dollars less on a short sale
transaction versus a full foreclosure proceeding. It is simply in their best
interest.
Can a borrower negotiate a short sale themselves?
Yes, but trying to do it alone and on the phone with the lender leads to
inconsistent results that are, frequently, not acceptable to the borrower.
Working with ShortSaleUS.com will result in written negotiations and more
consistent results. The Short Sale US method has historically produced
results which are more acceptable to the borrower more than 90% of the
time. The management of ShortSaleUS.com has more than two decades of
experience. This is not the first time we have dealt with market conditions
similar to what we are now experiencing.
Submit your request to ShortSaleUS for a free initial evaluation:
For the fastest response time, we suggest you submit an online application,
or call (888) 907-4678 or you may send your application by regular mail to our
office at 101 E. College Avenue, Westerville, Ohio 43081.
You may use our free tools, available on this site, and the following guidelines
to determine the feasibility of a short sale for you:
- If you have savings of less than $2,500, you may be a good candidate for
short sale.
- Check the prices of comparable property sales on our website. Have
comparable homes, in your zip code, sold for less than your mortgage
balance? In fact, if comparable homes have sold for more than your
mortgage balance(s) but after deducting 5% real estate commission and 2%
for sales costs the net amount of comparable sales is less than your mortgage
balances, you may be a good candidate for short sale.
- Using the free tools on our website, determine how many homes are in the
foreclosure process, in your zip code. If you see 10 or more homes in any
foreclosure category you are a good candidate for a short sale.
- With the tools on our website read the foreclosure laws and applicable times
in your state. If you determine from the Foreclosure Law section in your state
that a lender may take a deficiency judgment against you then you will want to
pursue a short sale to prevent the possibility that your lender will pursue you
for the balance which remains unpaid after the loss of your home at a sheriff's
sale.

3. The unpaid balance of my mortgage is more than my home is worth. Is
a short sale my only option to avoid foreclosure?
You do have other options, such as a Deed in Lieu of foreclosure that
ShortSaleUS.com can assist you with. If, after an initial interview, you wish to
remain in the home and it is feasible, we can assist you in renegotiating the
terms of your note(s) and mortgage(s).
Will I still need to pay income tax on the forgiven amount if I am
successful in negotiating a short sale on my primary residence?
Debt forgiveness can create an income tax burden for a seller. A law enacted
in early 2008 eliminates the tax on any amount forgiven by a lender on the
borrower’s primary residence until it expires at the end of 2009. Please see
the “News You Can Use” section on the home page of this website for the
text of the bill. There are a number of strategies to mitigate the tax, such as,
proving insolvency to the IRS or convincing a lender to consider the purchase
price for the loan in the final 1099 totals. Many lenders purchase loans for far
less than face value.
How long does the foreclosure process take?
Please see "Foreclosure Laws" section for your state.
What are the implications of a deficiency judgment?
Check to see if Deficiency Judgments are permitted in your state using our
foreclosure law section. If your state permits deficiency judgments, it could
allow your lender to garnish your wages, attach other properties you may own
and aggressively pursue collection of any amount that remains unpaid for
many years after a sheriff’s sale of the property.
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