West Michigan Short Sale FAQ

West Michigan Short Sale Home depicted by a home floating.Below are some commonly asked questions to help you sort through the maze of avoiding a foreclosure on your West Michigan Home.

West Michigan Short Sale FAQ Question #1

What is a Short Sale and what does it have to do with selling my West Michigan Home?

As a Grand Rapids Short Sale Agent, I will try and give you a definition the average person would understand.  Simply put, a short sale is when you sell your home and the bank agrees to take less than what you owe on a home.   Some terms you may here are “upside down” or “under water” which is when your home is worth less than what is owed on it.  West Michigan Short Sale is an alternative to having your West Michigan Home go to foreclosure which is when the bank takes your home.  It is not a loan modification.

West Michigan Short Sale FAQ Question #2

Will I have to pay the difference between what is owed and what my West Michigan Home sells for?

In most instances the answer to that question is no, but there are never any guarantees the bank will not come after you at a later date.  The best way to minimize the possibility is to sign a small note but many sellers decide not to even do that because banks are so rarely coming after people.  You know the old saying, “You can’t squeeze blood out of a turnip”!  Sometimes banks will ask you to sign a note which is discussed further in a post.

West Michigan Short Sale FAQ Question #3

What are the costs involved in doing a West Michigan Short?  How much will I have to pay for the short sale?

The cost for us to negotiate the short sale is usually zero.  The banks usually pay most of the fees involved.  Occasionally a seller will need to pay the administration fee charged by the real estate agency but that is minimal.

 

West Michigan Short Sale FAQ Question #4

Can I still do a Greater Grand Rapids Short sale if I have two mortgages?

Absolutely!  You will hear this referred to as a first and a second.  It is a little more complicated but we have done many short sales that involve two loans.

West Michigan Short Sale FAQ Question #5

I can still make the payments for a few more months.  Should I wait until I cannot make the payments?

NO . . . .let me say that again . . . DO NOT WAIT UNTIL YOU CAN’T MAKE THE PAYMENTS!!!  If I could, I would put that in flashing lights!!  A successful West Michigan Short Sale always starts before you can’t make the payments.  Each day you get closer to not making payments makes a short sale more difficult to do.  We do not want to race the clock trying to get an offer before a sheriff sale.

West Michigan Short Sale FAQ Question #6     What is a sheriff sale?

Simply put, the sheriff sale is when ownership passes from you to another entity, whether it be a bank or an individual. It is very rare for the bank not to buy your home back at sheriff sale.  Once the sheriff sale happens you have been officially foreclosed. HOWEVER, you still have all rights to the home for six more months by Michigan Law.  There are some circumstances which possession can be accelerated so please call to talk to us if you are at this point.  The best possible thing to do is stay in the home!

West Michigan Short Sale FAQ Question #7  

If my home has gone to sheriff sale, does that mean Grand Rapids Short Sale agents cannot do a short sale?

No it does not.  You are now in what is called the redemption period.  The chances of a successful West Michigan Short Sale have gone down considerably because we are now in a serious race with the clock. We have had many done in the redemption period.  If you only have three months left on the redemption period, we will not take your short sale listing.

West Michigan Short Sale FAQ Question #8

Is it possible to do a West Michigan Short Sale without damaging my credit?

Absolutely not.  A short sale will damage your credit but it doesn’t do near the damage as a foreclosure or a Deed-in-Lieu.  Banks will not do a short sale until you are behind on your payments.  This does NOT mean you should wait until you are behind to start the process.  We want to stay as far away from shefiff sale as possible.

More than likely you will have further questions. Please feel free to ask them below but I also encourage you to read my blog as there is a wealth of information there.  I hope this information will help you decide if you should call us.  Please don’t ignore where you are, because every day that goes by takes away from the possibility of having a successful West Michigan Short Sale.

  

 

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