1. What is a short sale? A short sale is when you sell a property for a price that is insufficient to pay off the debts secured by that property.

2. Will it cost me any money to do a short sale? There is NO COST to you, the HOMEOWNER. Although we are allowed to collect a fee, being our homeowners are in financial distress already; we choose not to. CT Property Network short sale negotiation fees are paid through the bank or buyer at closing. In most cases if you are eligible for a short sale all costs will be paid or absorbed by the bank. All Realtor fees, attorney fees, back taxes, conveyance taxes and other closing costs should not have to come from the seller. Determining your eligibility is an important first step.

If you are upside-down on your mortgage and cannot afford your monthly payments, or have to move and cannot afford to sell because your property is worth less than you can sell for; you are more-than-likely eligible. Most banks require that you have a financial hardship. Common hardships are; loss of job, curtailment of income, medical problems, divorce, loss of rent, need to move. You will also need to demonstrate your inability to pay the mortgage. In our experience, we have not yet had anyone ineligible for a short sale.

Banks often recommend a short sale to homeowners in distress. Short sales are a very common solution in this market. Every bank has a short sale dept set up to handle short sales. It is a lot less costly to the banks then to pursue a foreclosure and take the home over. Banks do not want your house, no matter how nice it is, they are in the business of lending money, not selling homes. Banks have their own "credit rating" and are rated by the number of performing and non-performing loans they hold. Many banks are required to keep a cash reserve up to 6-10 times the retail value of every non-performing loan. This is very costly to their business. They know that if you go into foreclosure they will be dealing with a vacant house, that may get vandalized, have pipes leak or freeze, etc. The banks actually encourage short sales when in distress.

No problem! In order to sell your property, you will need to convey clean and clean title. We will negotiate ALL of your liens simultaneously, including: mortgage liens, HELOCs, union liens, real estate tax liens, HOA, water and sewer, blight liens, credit card liens, even state and federal IRS liens. It is critical to have licensed, seasoned negotiators, like us, representing you when there are multiple mortgages and liens.

Missed mortgage payments leading up to the short sale will drag down your credit. A short sale affects your credit, but not as badly as a foreclosure, which stays on your credit for seven years. It is often possible to have your credit repaired within two years after a short sale. After two years it should even be possible purchase another home and get a new mortgage. A foreclosure, on the other hand, remains on your credit for seven years. Most people make it a goal to avoid foreclosure.

Yes, your primary residence, investment and commercial properties, are all eligible to short sale. As long as you have hardship to demonstrate that you cannot afford the mortgage. About half of the properties we negotiate short sales on are people's investment properties that are dragging them down.

No.

Yes. We can usually convince the banks to delay the foreclosure if you are actively trying to short sale the property. Since the banks would rather you sell the property short then them take it in a foreclosure action, they are usually cooperative.

There are many negative consequences to foreclosure. Your credit score will be adversely affected. You may need credit to rent after your house is gone. Foreclosure remains on your credit for seven full years. In most states the foreclosure will not release you from the obligation to pay back the loan. The bank can get a judgment for the deficiency and try to collect it for many years in the future. Therefore after a foreclosure, you will be dealing with a lawsuit, which may lead to the need for bankruptcy. There may be embarrassing notices in the newspapers and a sign on your front lawn. You have no control. When you negotiate a short sale: you are more in control. You know where the bank stands. We negotiate with the bank to take less. Neighbors do not need to know of your troubles. More civilized, more discrete.

You may want to hire an attorney if you have extenuating circumstances, such as you want financial planning or other debt relief, or you want to keep your property for a prolonged period of time, otherwise, no attorney is needed. Most of our distressed homeowners do not retain an attorney unless they have other needs aside from the short sale.