Avoid Foreclosure - Short Sale FAQs
If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale—even if you don’t think you can (or haven’t been able to) sell your home.
What is a Short Sale?
A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds.
A short sale is an alternative to foreclosure and may be an option if:
- You are facing a long-term hardship
- You are behind on your mortgage payments
- You owe more on your home than it’s worth
- You have not been able to sell your home at a price that covers what you still owe on your mortgage
- You can no longer afford your home and are ready or need to leave
What are the benefits of a Short Sale?
- Eliminate your mortgage debt
- Avoid the negative impact of a foreclosure
- Start repairing your credit sooner than if you went through a foreclosure
What is the process for a Short Sale?
If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with a Military Homes Charleston real estate agent to market and sell your home. However, your mortgage company will also be working with you and your real estate agent every step of the way to:
- set the sale price (based on current market value),
- collect financial information and negotiate with other lien holders (i.e., your second mortgage company) if applicable,
- review acceptable offers,
- agree to the terms of the sale once a buyer is in place, and
- work with the buyer’s real estate agent and mortgage lender to finalize the sale.
A Short Sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. Contact your Military Homes Charleston real estate agent for more information regarding the short sale timeline.
Contact a Military Homes of Charleston real estate agent—Tell them you are interested in possibly pursuing a short sale.
Gather your financial information - make sure you have your basic financial and loan information on hand when you meet with your agent. Here's what you will need:
your mortgage statements, including information on a second mortgage (if applicable)
your other monthly debt payments (e.g., car or student loans, credit card payments), and
your income details (paystubs and income tax returns).
Explain your current situation to your agent and remember that your agent IS THERE TO HELP YOU.
Get your home on the market- Before your mortgage company will consider allow you to short sale, you must prove your home is being actively marketed for sale. That is what your Military Homes Charleston agent will ensure.
Your mortgage company wants to help you avoid foreclosure and, in most cases, will be willing to work with you. The biggest mistake you can make is to wait any longer to take action. Contact a Military Homes Charleston agent today to determine if you are eligible for a Short Sale. Our Loss Mitigation Specialist is also available for questions/concerns anytime, Call or text (843) 410-8014 or firstname.lastname@example.org.
Military Homes Charleston
We specialize in helping military families enjoy a smooth PCS in and out of Joint Base Charleston, South Carolina. Buying and selling your home is one of the biggest events of your life. As your trusted Charleston Real Estate Professional, we are 100% committed to helping you the best way we can when you buy or sell your home. We have a passion for helping people, and we love what we do – call 843-410-8014 or email@example.com today!