Hoffman Realty Group Inc.
HRG Inc.BRE# 01370742                                                                                                     Call Us at (916) 983-7653
Jeff Hoffman BRE # 00991168


Folsom's #1 Agent in total sales since 1988! SMART, INNOVATIVE real estate marketing that sells your home in less time and for a higher average selling price than methods used by traditional real estate agents. Are you ready?


Short Sale FAQ's

What is a Short Sale?

Answer:  A Short Sale is a type of sale that happens when the value of the house is less than the balance owed on the mortgage(s).  A Short Sale allows the seller to renegotiate the debt with the lender(s) and payoff the mortgage(s) at the price the home sells for, even though it is lower than what is owed on the home. Short Sales can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider Short Sales because they are much less costly than foreclosures.  Short Sales are not typical real estate transactions and require the expertise, experience and strong working relationships with mortgage companies and banks that are provided by Short Sale agents like us.

What are the advantages of a Short Sale?

Answer:  For you, the homeowner, advantages include avoidance of a foreclosure on your credit history. Having a foreclosure on your credit report is second only to bankruptcy and will substantially reduce your credit score. You may also have to wait several years to qualify for a mortgage again.

The impact of a Short Sale on your credit is much less severe than with a foreclosure.  And, if buying a home is something you’d like to do in the future, if you successfully complete a Short Sale, in most cases, you may again qualify for a mortgage right away or in as little as 18-36 months.

A Short Sale is typically faster and less expensive than a foreclosure and there is NO COST to you for us to help you negotiate your Short Sale approval with your lender.

Is a Short Sale right for me?

Answer: Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure. As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure. Bottom line, your lender wants to work with you.

I am current on my mortgage; will my lender consider a short sale?

Answer: The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current. 

I am concerned about my credit, how will a Short Sale affect my credit?

Answer: Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure.

I’m late on my mortgage and may be facing foreclosure, what do I do?

Answer:  The first step is to contact us and speak with one of our agents. We can assist you in understanding all of your options to avoid foreclosure. You’re not alone. Many distressed homeowners don’t know what to do, give up, and do nothing. That’s the worst thing you can do! You have other options. Let us assist you in understanding your options and negotiate with your lender on your behalf.

Is there any cost to me to do a Short Sale?

Answer:  Absolutely not. All closing costs are offset by your lender. All commissions, title and escrow fees, and even most repair expenses are paid by the lender as part of the Short Sale approval.  If your lender does not approve your Short Sale you owe us nothing.

How do I qualify for a Short Sale?

Answer: In most cases you must demonstrate true hardship although there are exceptions.  We always suggest that you call us directly so we can help evaluate your situation and offer you the best options available to you in your particular situation.

What criteria demonstrate that I am in a “hardship” situation?

Answer:  A hardship situation is one that results from an extenuating circumstance that places you in the position where you can no longer afford your mortgage payments. Examples include:

  • Unemployment or the loss of a primary income source
  • Inability to work due to a health issue
  • Business failure
  • Bankruptcy
  • Death of your spouse or significant other
  • Moving and cannot keep up payments on two properties

If I do not live in the property, do I still meet the requirements for a Short Sale?

Answer:  Yes. Non-owner-occupied properties do qualify for a Short Sale.

Why shouldn’t I negotiate with my lender directly?

Answer:  For one thing, the property needs to be listed and sold to a third party. You need professional assistance to handle the sale. Plus, you only get one chance to negotiate a way out of foreclosure through a Short Sale process and it’s extremely important to have experience and expertise on your side to do it right. You wouldn’t go to court without an experienced attorney, why would you try to navigate the intricate process of a Short Sale without an experienced Short Sale expert on your side?

Why would my lender agree to a Short Sale?

Answer:  Whether a lender chooses to foreclose or agrees to a Short Sale, the lender is taking a loss. In many instances, lenders take less of a loss with a Short Sale, and can cut its losses faster then what is required to foreclose. Foreclosure is usually a last resort for everybody. Remember, a lender is in the business of making loans, not owning and managing properties.

I have two loans; can I still do a Short Sale?

Answer:  Yes. We can work with both lenders (many times the same lender hold the 1st and the 2nd loans) to put together a Short Sale transaction. Even if the value of your home is below the balance of the 1st mortgage, we can normally get the two lenders to cooperate.  In the end, neither lender wants to own another home through foreclosure.

Answer: The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter - worse than bankruptcy. In the course of getting your Short Sale approved you may miss your mortgage payments, and these will show on your credit.  By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly.

When should I begin the Short Sale process?

Answer: Immediately! Distressed situations are likely to be very time sensitive and negotiations take time. The faster we can begin negotiating with your lender on your behalf, the greater the likelihood of a successful resolution. You don’t have to wait until you receive a notice of default or notice that foreclosure proceedings on your home are underway. Contact us today! We’re here to help you. Complete our Contact Us form or call us at 916-983-7653. We’ll answer all of your questions and you are under no further obligation.

How do I get started on a short sale?

Answer: It’s easy.  Call us at (916) 983-7653 and our friendly staff will set up a private phone consultation with one of our Short Sale advisors.  During this call we will answer your questions, ask a few questions to better understand your situation, and offer you advice on possible options and choices available to you.  There is no charge to you to get started. It is as simple as contacting us and we will get to work. If you later decide you don't want to do a Short Sale you can cancel the sale at any time.