Frequently Asked Questions
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Q: [What is a short sale?]
A: [Simply put, a short sale occurs when a lender agrees to take
less than the amount that is owed on a piece of property. A short
sale is successful when your net proceeds from a sale are
insufficient to cover your loan balance but the lender agrees to
take a lesser amount. We provide short sale advice and services at
no cost to the home owner.
California Short Sale Solutions will identify and implement the best possible Short Sale solution, which will help you avoid foreclosure. Once we have reviewed your situation we will negotiate with your lender to come up with a solution. Our purpose is to secure a fair agreement with your lender.]
Short
Sale
Example:
Q: [How will a short sale affect my
credit?]
A: [The main advantage of a short sale is not having a foreclosure
on your credit report. Short sales may still show up on a credit
report as a “pre-foreclosure in redemption” status. Although this
can result in a credit score reduction of 100 points or less, a
foreclosure will usually reduce your score by more than 250 points.
According to Fannie Mae, an individual that forecloses must wait 5
to 7 years, maintain at least a 680 FICO score in the last 2 years,
and pay a minimum 10% down on a future home purchase. We have seen
customers purchase a new home in as little as two years after their
previous short sale.]
Q: [What are the qualifications for short sale?]
A: [The normal qualification for a short sale is proving a
financial hardship. Financial hardship can include many things such
as:
Loss of Employment
Major Illness
Divorce
Increased Bills
Higher Living Expenses
Investment Loss
Most lenders will want an explanation as to why you are struggling
with your current mortgage. A common misconception about qualifying
for a short sale is that you have to be out of cash. Having cash
savings in the bank for living expenses will not disqualify you for
a short sale.]
