A lender will often consider a short sale because the cost and risk of foreclosure is so high. In order to accept a short sale, a lender will need justification. Justification might mean a substantial loss of income that would prevent you from paying the mortgage and therefore being forced in a position to sell the home. Another justification might be that the house is simply worth less than what you owe, and you cannot afford to continue making payments.

This is the #1 question we get from our short sale clients. Essentially, we negotiate compensation with the bank which relieves you, the homeowner, from paying any commissions, attorney fees or incidental fees.

Imagine your home is worth $200,000 but, you owe $220,000 on it. If you were to sell it in the open market, you might net $184,000, or $36,000 less than what you need to pay off the loan. A short sale is where your lender will forgive a portion or all of the short amount and cover the closing costs of the sale including real estate commissions, attorney fees and other seller’s expenses.

Lenders all have different documentation requirement. Typically, you are required to submit anRMA Form (Request for Mortgage Assistance) hardship letter, two months of current bank statements, and one month of current pay stubs. When an offer comes in on your property, we will submit your documentation as well as the accepted purchase contract, an estimated settlement statement (HUD-1), and a copy of the listing agreement. We will also need a letter of authorization from you that will allow us to speak directly with your lender about the short sale transaction.

You have a few options when your home is worth less than what you owe. One option is to process a short sale application, which is when a lender is willing to accept less than what is owing in order to prevent having to go through the long, protracted foreclosure process. It is called a short sale because it is a “short” payoff.

Short sales typically take 30-90 days for approval with most banks. However, sometimes it can take longer, or sometimes it is shorter.

Many people on the verge of financial distress tend to procrastinate until thethreat reaches epic and consequential proportions. The earlier our response and the more time allowed increasesthe chances of a beneficial outcome. While you may think you have no choiceother than staying in your home and letting it foreclose, you DO HAVE ACHOICE! We can help you negotiate a short sale with your lender.

A short sale does adversely affect a person’s credit report, though the negative impact is typically less than a foreclosure. Short sales are a type of settlement. Short sale can remain on your credit report for 7 years. Depending on other credit information, it can be possible to obtain another mortgage 2-3 year after a short sale.

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NYS DOS Fair Housing Disclosure 2020

NYS DOS Fair Housing Posting

NYStateMLS Agency Disclosure

NYStateMLS Broker Buyer Agreement

NYStateMLS Cobroke Agreement

NYStateMLS Exclusive Right to Sell

NYStateMLS Property Condition Disclosure


Standard Operating procedures NYS

Borrower Affidavit of Financial Hardship

Borrower Decline_Opt-Out Modification Option

Borrower Letter of Intent

Borrower Phase 1

Borrower Short Sale Addendum

Borrower Short Sale Disclosure Affidavit

Borrower Third-Party Authorization