Got Questions?

Typically, a homeowner is dealing with some form of "hardship," which has/is/will prevent them from paying their mortgage. Further, and in most cases, the home is now worth less than what is owed to the Lender, thus making the home "underwater."

In most cases, a Seller will have NO out-of-pocket expenses in a short-sale transaction. Sellers are not required to fix up the home and the Lender will pay for all closing costs and commissions for Seller's behalf.

Most lenders will in fact allow for a "workout," as a Short-Sale. Lenders, in most cases, actually prevent further expenses on their end by performing a short-sale, so they save themselves against further loss.

Yes, as a practice, LMS ALWAYS requests this from ALL Lenders, but this does depend on the lender(s) and the overall situation. Lenders may be willing to assist a homeowner up to $10,000 for Relocation Assistance and anything in between that and $0. HOWEVER, this is case-by-case and any assistance request MAY BE DENIED. Further, most Lenders require that the property is being used as a "personal" residence.

We ask that you seek the advice of a credit repair counselor/company for this advice, but there is an overall understanding that a Seller may be "mortgage ready" again in two-to-three years (2 to 3) with credit repair efforts, unlike a foreclosure or bankruptcy, which damages your credit for seven-to-ten years (7 to 10).

In most cases, LMS will request the Lender pay for the LMS processing fee. In other cases, the Buyer is responsible, BUT NEVER the Seller nor their Listing Agent.

If a Seller's home has equity, they may be better suited selling on the open-market, so then can realize said equity. Typically, in a short-sale transaction, Sellers are not allowed to collect proceeds from a sale, so any equity in a short-sale transaction will go to the lender.

Most short-sales typically take roughly 90 days to process. However, it may be less or even longer depending on the situation. Every short-sale is case-by-case.

Please click and read the link below. Per National Association of Realtors — The Further Consolidated Appropriations Act of 2021 extended the exclusion, with some changes, through December 31, 2025.

www.nar.realtor/mortgage-debt-cancellation-relief

Yes, in most cases, lenders want to know the highest-and-best offer is being presented to them for their review, so placing the subject property on the open-market is an important detail to attract the best offer possible.

You are in good hands, as our team is licensed real estate agents and CDPE (Certified Distressed Property Experts). If you do not have a real estate agent, then please let us know and we will connect/refer you with a listing agent who is knowledgeable in the short-sale space.

We always recommend that you consult with a tax attorney or CPA for this advice. However, from our experience, there are debt forgiveness provisions in place that may help you in your situation.

Buyers should expect a longer timeline (approximately 90 days) and understand that the lender must approve the sale price. Short sales often provide excellent value and the property is sold "as-is" with no required repairs.

Yes, buyers can submit offers below the asking price. However, the final decision rests with the lender who must approve the sale.

The main risk is the extended timeline and the possibility that the lender may not approve the sale. However, with our 85% success rate and experienced team, we minimize these risks and keep all parties informed throughout the process.

We provide regular updates on the approval process, handle all lender communications, and ensure your buyer's offer is presented in the best possible light.

That's great! This is the first step. HOWEVER, all offers are subject to third-party approval — the Lender will, ultimately, need to approve the final price and closing.

Historically, Lenders have paid ALL commissions. However, with the new rules in the real estate industry, we leave this to the agents working the transaction. Please seek the counsel of your Broker if needed.

The average short-sale transaction takes 90 days to close, so all Buyers must be aware of this and be patient and committed to the process.

For starters: 1) As-is Purchase and Sale contract; 2) Short-Sale Addendum to As-is contract; 3) Proof of Funds (last 30 days); and 4) As-is Articles of Incorporation (if purchasing as a corporate entity). LMS will facilitate additional documents.

Absolutely. If you have construction bids or inspection reports to support your offer amount, LMS will ensure the Lender receives your supporting documents.

This depends. Once LMS has provided the Lender with a complete package, they will order a BPO (Broker's Price Opinion) to determine if the Buyer offer is acceptable. The Lender will either APPROVE or DENY the offer amount.

Once the transaction's terms have been agreed upon, the Lender will provide an "APPROVAL LETTER." This document details the terms of the deal and the expected close date, which is typically 30-45 days from date of said document.