Short Sale Info

The Beauty and Huge Benefits of Short Sales!

Short Sale – A negotiated settlement between home owners and lien holders (mortgage companies) to sell the home for less than what is owed on the mortgage saving the home owner form the uncertainty of Foreclosure and Eviction.

Many home owners are struggling with the housing market these days.  Are you falling behind on your mortgage payments due to an unforeseen change in your life?  (Examples; Loss of job, divorce, medical disability, military service,  balloon payment due, high adjustable rate kicking in, etc…)  Do you owe more money on the mortgage than your home is worth in this market making it impossible to refinance?  There are many ways to lose a home but signing 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. A Short Sale may be the answer you have been looking for!!! 

A Short Sale is not easy and you must qualify, but if you do, you CAN sell your home by avoiding Foreclosure.  A Short Sale can not only drastically reduce the damage to your credit rating but it could avoid you from being evicted and give you the opportunity to buy a home again in a much shorter period of time!

A Short Sale is NOT a Foreclosure!  Most people are not aware of this.  A Short Sale is almost always a better alternative to a Foreclosure and here are just a few reasons why:



Credit Penalty

Buy A Home Again

Attorney Fees



IRS Liens 

Living Situation 

Life In General

Short Sale

Approx 80-150 Points 

Approx 2 Years

None! Zero Cost From Seller!

Negotiated Settlement

Will Have Loan Deficiencies

Possible If Applicable

Seller Usually Stays Longer

Lender approved, Peace of Mind


Approx 200-300 Points

Hard To Buy Within 10 Yrs

High Attorney Fees!

Court Settlement

Deficiencies are Negotiated

Negotiated If Needed


Stressful, No Piece of Mind

(Again, you must qualify and get approved for a Short Sale; we will help you with this!)

Watermark Realty can help!!!  First and foremost, we will determine if you qualify for a Short Sale and work with your bank for an approval to move forward.  We will arrange, negotiate, and handle the entire process for you!  It requires a real understanding of how the process works, who the key players are and the patience and negotiating skills to get a resolution before time runs out.  It also requires obtaining offers on your home very quickly which we specialize in!  This is not a guarantee but it is the best alternative when all other options are exhausted.

Timing is critical to the process!  The process can start before you are even late for a payment if you have a valid excuse.  The key to success is starting as early in the process as possible!  A clear and accurate evaluation of your complete financial situation is needed.  We will assist in getting all documentation compiled and completed to give you the best chance of a positive resolution!  Their are NO REAL ESTATE FEES!!!  The mortgage companies pay all fees and closing costs.  It is important to understand that MORTGAGE COMPANIES DO NOT WANT TO FORECLOSE AND OWN YOUR HOME!  It is often cheaper and easier for them to negotiate a settlement and loose less money up front than sitting on a foreclosed property for months and even years just adding to the expense and loss. A Short Sale is not something that you should try alone!!  The proper guidance, knowledge, organization, negotiation and determination are required to make a Short Sale work.  Again, you will receive a credit penalty but nothing like you would with a Foreclosure!

Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

  • Obviously a homeowner would like to catch-up on their mortgage payments to prevent or cure a default notice from their Lender.
    • Unfortunately, the longer into the default, the more money the homeowner owes the Lender.
      -House payments with accruing late payments
      -Legal Fees
      -Forced Homeowners Insurance (If Homeowner allows lapse of Homeowner insurance)
    • These charges are cumulative and snowball into more money owed than most homeowners can pay back

  • It is to the Homeowners advantage to immediately contact the Loss Mitigation Department within their mortgage company/Lender. This Department is sometimes called a "Short Sale".Department.
    • It is VERY important that the homeowner realize that their are two very important departments within their Lender; the 1st is the Foreclosure Department; the 2nd is the Loss Mitigation Department.
      -The Foreclosure Department has one thing on their mind and that is to foreclose on your home as quickly as the law allows.
      -The Loss Mitigation Department will work hard with you to assist you and us in avoiding a Foreclosure on your record.
    • I like to think of these two departments within the same lender as two trains racing toward one another with you in between, sound scary? You bet it is!

Your Lender will require a huge amount of paperwork to be filled out but we do not recommend you try this on your own. We are here to walk you through this! You will need a seasoned, experienced Realtor to help you navigate the Short Sale process. We also recommend that you allow the Realtor to act for you in negotiating with your lender. This takes the personal vulnerability out of the transaction and makes the process run more smoothly since the Realtor experienced in Short Sales knows the time lines, paperwork and how to deal with your lender.

You need to act quickly, as soon as you know that you cannot keep up your mortgage payments. You can apply for a short sale before you fall behind or after you receive a default notice. The sooner the better! We will need time to get your lender's permission to pursue a Short Sale.  The longer we have to sell your home, the better chance a Short Sale will be successful.

Please contact us to talk about your individual circumstances. We offer complete confidentiality and the kind and personal touch from start to finish you expect and deserve. Our goal is to keep you and your home out of Foreclosure.

Call us or fill in the request below for more information and write the words “Short Sale” in your request so we can assign you to one of our specialists who can help you through this difficult but very possible alternative to Foreclosure!

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Cynthia Smith