Short Sale FAQ

My property is not listed. How do I start the Short Sale process?
Contact Randy Gammo as soon as possible.  Time is of the essence.  After an immediate phone consultation and a listing appointment, you will be well informed and on your way to a successful short sale!

My property is listed but I want to keep it. How do I know if I qualify for a Modification?
If you want to keep your property and have not applied for a Modification, contact Randy for a list of resources for a possible loan modification.  You may also get more information on FannieMae.com.

What documentation will I need to submit with my Short Sale request?
You will need to complete a request for Short Sale using the Short Sale Information Packet. This contains the information we need describing your situation as well as contains a checklist of the supporting documentation you’ll need to provide.

How do I submit the required documentation?
You will have the option to fax the documentation or mail.

How long does the process take?
Once all required documentation is submitted a decision is typically completed within 30-60 days. Common reasons decisions may be delayed include low offers for your property which are under fair market value and junior liens held by other banks or individuals that also need to agree to a short sale. Depending on the type of loan, an investor and/or insurer may also need to approve the sale.

Will I have any tax liabilities?
Consult your tax advisor to see if you will incur any tax liabilities as a result of the short sale.

How will a Short Sale affect my credit?
The completion of a Short Sale may affect your credit rating. The final disposition of a completed Short Sale may be reported as "Account paid in full for less than the full balance" on your credit report.  Your credit score may fall by up to 300 points but because your credit rating is determined by multiple factors, it is impossible to say how adversely affected will be once the process is complete.

Does Team Gammo charge a fee for the completion of a Short Sale?
Yes, but the fee is not charged to the seller.  The fee is charged to the bank allowing for the short sale or the potential buyer.  The fee will be an agreed upon figure by all parties involved.

Will I be required to pay back the amount of the shortage or the deficiency balance?
There are a myriad of different banks and lenders that we work with to facilitate your short sale transaction.  The final decisions regarding the short sale acceptance and all ensuing details pertaining to the short sale of your home will be decided by the lender allowing the short sale transaction.  ALL FINAL DETAILS WILL BE EXPLAINED THOROUGHLY TO BOTH THE BUYER AND THE SELLER.

My loan is in Foreclosure. Can I still be considered for a Short Sale?
Yes, however the Foreclosure may continue during the process. Please contact your Loss Mitigation specialist for more information.

My loan is current. Can I still be considered for a Short Sale?
Yes, however the required financial documentation must be submitted along with a detailed Hardship letter explaining the inability to continue to maintain your loan payments.

I have two loans. Can I still be considered for a Short Sale?
Yes, however if the 2nd loan is with another bank they will need to approve the Short Sale separately.

My property is a rental. Can I still be considered for a Short Sale?
Yes, however you must include rental income documentation, which will include bank statements, rental agreements or an explanation letter if rents are not being generated.

Do property taxes need to be paid during the Short Sale process?
Yes but in cases of extreme hardship, accommodations can be negotiated.

I filed Bankruptcy. Can I still be considered for a Short Sale?
Yes, however consult your Bankruptcy attorney regarding the process of selling your property during a Bankruptcy.

I want to deed my property to my lender. I have heard this is possible through a Deed in Lieu of Foreclosure. Is this an option?
This may be an option however it is recommended the Short Sale option is reviewed first. Please contact Randy Gammo or your Lender’s Loss Mitigation specialist for more information.

What is HAFA?

Home Affordable Foreclosure Alternatives (HAFA) Program
If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA. The benefit of a HAFA short sale is that you are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You will also receive $3,000 in relocation assistance upon successful closing of your short sale.  In a short sale, the servicer allows you to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. or deed-in-lieu of foreclosure.  With a deed-in-lieu of foreclosure, you voluntarily transfer ownership of your property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances. Generally, if you make a good faith effort to sell your property but are not successful, a servicer may consider a deed-in-lieu of foreclosure..

Eligibility*

You may be eligible to apply if you meet all of the following:
You live in the home or have lived there in the last 12 months.
You have a documented financial hardship.
You have not purchased a new house within the last 12 months.
Your first mortgage is less than $729,750.
You obtained your mortgage on or before January 1, 2009.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

Program Availability

HAFA is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac or serviced by over 100 HAMP participating servicers.

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