Frank Wible's Services - What is a Short Sale

Property values continue to drop as mortgage payments continue to rise. Experts expect it to be much worse in the years to come. Some areas in New Jersey could see another 10% drop in value!

What do you mean by Short Sale?
There are many ways to lose a home but giving away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale." When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due.

Does the lender come after me for the short amount?
As part of our service we not only negotiate with your lender to take a lower amount as payoff, but negotiate with them to completely forgive any deficiency. In some cases, we have seen the lender ask the home owner to sign a personal loan for some of the short amount. The last one I remember was the lender asking the home owner for $100 per month for 100 months. The short sale was for $100,000 less then the seller owed. So having to pay $10,000 was not a bad deal for the seller. In our contract of sale you are protected. It says, "if the short sale approval from the lender is not to the sellers satisfaction, the seller can cancel this contract." So if for any reason we get the short sale approved and you do not like the terms of the approval, you can cancel the contract of sale! Again, I don't see the lenders ask for this often.

How do I Qualify for This Service?
Yes, you do have to qualify for a short sale. You can not just decide one day that you do not want to pay for your house and sell it in a short sale. There has to be a reason. We call this "The Hardship." Hardships can be many different things. It can be that you lost your job, there was a death in the family, your ARM mortgage keeps increasing, and pretty much anything else that has caused you a financial hardship. Once we meet with you, our first step is to qualify you.

Do I Still Pay The Commission and Closing Costs?
No! All real estate commissions, closing costs, property taxes, water and sewer bills are all paid by the lender when we settle. So in simple terms, this entire transaction costs you no out-of-pocket money. The process is easy. I sell the house, you and I go to the closing, you sign the settlement sheet and thats it! Don't bother bringing your checkbook, you will not need it.

How Much money do I Make from the Sale?
When a lender agrees to take a lower amount as payment in full, you can be assured they are not allowing you to make a dime. In a short sale approval letter from the lender, they spell out the terms and conditions of the closing, it always says "Seller to Net Zero from the Sale." I've heard of some agents or buyers giving money to the seller after settlement. This is called "Back Door Money." Nor I or any of my agents, representatives, or employees take ANY part of this, and will NOT allow it.