The Resource Center
Articles, Videos, Webinars, and Q&A
Welcome to the Short Sale Resource Center. Here you will find a wealth of free information and guides on Short Sales, presented in three different formats: articles, videos, and “webinars” (online seminars). You can also ask questions below in our “Ask Arton” section. We update this site on a regular basis, so please check back periodically for new current information.
As a last resort for foreclosure prevention, Short Sale negotiation is a sensitive and complex process. The purpose of this site is to help you through it!
The information presented here comes from our extensive experience in negotiating with mortgage lenders for Short Sale approval on behalf of homeowners. We know how lenders review Short Sale applications, what they look for, common and uncommon problems, and ways in which these problems can be resolved.
And if you need personal assistance, we encourage you to fill out our confidential Short Sale Application. Our Short Sale negotiators will review the application and contact you for a free consultation.
Q. Hi Arton, my name is Ed, and my wife and I are trying to short-sell our home. We got a short sale approve from both lenders, but the 2nd mrotgage said we have to bring in $10,000. My realtor said that we wouldn’t have to pay anthing, but now we are being asked for more money. I feel that I am being taken advantage off. I thought a short sale means we are relieved of financial obligation? This is not what I expected, please let me know what I should do. - Ed
A. Hi Ed, Thank you for the question. It sounds like your realtor has not had a lot of short sale experience. Otherwise, s/he would have known that it is common for lenders (especially 2nd mortgage lien holders) to require funds from sellers. While the additional $10,000 may be outside of your expectations, it is not an uncommon thing for lenders to require. I have seen some lenders require as much as $30,000… while other lenders don’t require any additional funds at all.
Basically, your lender is saying is that instead of requiring the full balance (which I assume is between $90k - $150k), your lien will be released for just $10k. From the lender’s perspective, you are being offered a very generous deal, as they are losing a lot of money on a loan that you had promised to pay back in full. Find out if your realtor has tried to negotiate with the lender for a smaller payoff amount. Some lenders are more flexible than others. In the end, your choice should come down to affordability. If you can afford to pay the required funds, then I recommend you go for it, as foreclosure will have even more drastic long-term consequences.
If you would like to talk more about this, please call me at (650) 697-1200. Regards, Arton
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