Is a short sale right for me?
Program goal
The goal of a short sale is to help you avoid foreclosure if you are no longer able to remain in your home. In the short sale process, you sell your home and settle your mortgage debt for less than the amount that you owe.
Eligibility
You may be eligible to sell your home in a short sale, if:
- you have a hardship, such as a job loss, divorce or medical emergency
- you owe more than your house is worth
- you’re unable to afford your current monthly mortgage payment
- you’re unable to modify your current home loan
There is a more significant negative impact on your credit with a short sale than with options that allow you to stay in your home, so you should explore all your other options first. However, the negative impact of a short sale on your credit may be less than what you would experience by a foreclosure. This time frame is lessened when doing a short sale compared to a foreclosure.
You should contact a tax professional to gain an understanding of any tax implications.
Because a short sale would allow you to sell your home for less than the loan, you would not receive any money back at the time of the closing.
Program at a glance
- Step 1: Call us and we’ll work with you to explore any options that may be available to help you stay in your home. The sooner you work with us, the more options you may have available.
- Step 2: After all other options have been exhausted and you’ve decided a short sale is right for you, we recommend working with a licensed real estate agent who can assist you in listing your home for sale.
- Step 3: Once you receive an offer, we’ll begin working to gain approval of your first mortgage short sale request from all necessary parties. It is important to note that if you have a second mortgage with another lender, or any other outstanding debts against the property, it is your responsibility to get approval from those parties.
- Step 4: We will determine the fair market value of your home by ordering a valuation and reviewing the prices of recently sold homes comparable to yours in your local market. Based on our findings, we may present you with a counter offer if the original offer is not in alignment with the fair market value of your home.
- Step 5: If all parties agree to the terms of the offer (buyer, seller, and any other debt holders), your short sale offer will be approved. Remember, a short sale approval may take longer than getting a traditional mortgage approved. Once your loan has closed, the proceeds are paid according to the terms of the agreement.
Get more details on the steps of a short sale.
How do I get started with a short sale?
Before we begin
To get started with a short sale, call us and we’ll work with you to explore any options that may be available to help you stay in your home. The federal government’s Home Affordable Foreclosure Alternatives program offers a streamlined short sale approval process as well as financial relocation assistance. Check to see if you’re eligible.
If you decide a short sale is right for you, we recommend that you contact a local, licensed real estate agent to assist you in marketing your home for sale as a short sale property. A real estate agent will help you navigate the short sale process and will work with us on your behalf.
If you do go forward with a short sale, you’ll need to:
- market your home
- send us a copy of the offer letter
- tell us about your financial hardship
Let us help you
1.866.880.1232
8am-9pm EST Mon-Fri
Prior to calling, please print out this form and have your information ready.
Now that I’m in the process, what’s next?
If you’re already in the process of selling your home in a short sale, we can help you understand what you need to do next.
I have called for more details on a short sale.
When you call us, have your loan information readily available and be prepared to discuss your financial hardship in detail. The first thing we’ll look at is whether there are any options that may allow you to stay in your home. If you decide that a short sale is the best right option for you, you can begin marketing your home.
I have decided to go forward with a short sale.
We strongly recommend that you reach out to a local licensed real estate agent as soon as possible. Selling a home in a short sale situation can be a complex process. Working with a realtor who has previous experience in that process makes a big difference. Among other things, the real estate agent can help you market your home, field potential offers, and find a buyer.
I have received an offer on my home.
Once you receive an offer, you or your real estate agent need to submit it to us in writing, signed by the buyer. At that point, we will work to gain approval of your offer. If you have a second mortgage with another lender, or any other debts against the home, it is your responsibility to work with them to get their approval.
My offer is being reviewed and I’m waiting for a decision.
As we consider your offer, we’ll need to determine the fair market value of your home. To do this, we’ll order a valuation of the property and look at the sale price of other homes of similar size in your neighborhood.
Once the fair market value of your home is determined, we may make a counter-offer. It’s not unusual for offers to be withdrawn all the way up until the closing, so during this time, we encourage you to continue marketing your home and bringing us any offer you may receive.
My offer has been approved.
Once the offer has been accepted, we will provide you with an approval letter releasing the home for purchase. With everything in order, final documents will be prepared and a closing will be scheduled. Your house is now sold and your mortgage and any other loans against the home are paid off from the proceeds of the sale.
Home Loan Assistance Frequently Asked Questions
I am current on my mortgage but feel I’m heading for trouble. Can I consider a short sale?
The short answer is “yes.” But before you consider a short sale, there are many other options to explore, such as refinancing or modifying your home loan payments that could allow you to stay in your home with more affordable mortgage payments. Call one of our short sale specialists at 1.866.880.1232 to help determine other options for which you may qualify. They will work with you to help determine your best course of action.
I have received a foreclosure notice. Can I still do a short sale?
Yes. Depending on your circumstances, it’s possible to do a short sale all the way up until the day of foreclosure.
How long does a short sale take?
Because of the number of people and amount of paperwork involved in a short sale, it can take longer than a traditional home sale. Typically it takes 45 to 90 days after the initial offer is accepted to finalize, although timelines can vary based upon current market conditions and your particular circumstances.
Will I receive any money from the short sale of my home?
No. Because Bank of America and other parties are receiving less than the total amount owed to pay off your property, all the proceeds of the sale go to satisfying that debt.
