You read that correctly - many lenders will now pay youto leave your home upon completion of a successful short sale.  Contact us to find out more.


What Is A Short Sale?

A short sale is when a lender accepts a discount  or may be willing to accept a lesser amount than what is currently owed on a mortgage to avoid a possible foreclosure, auction, or bankruptcy.

Our Asset Vu Short Sale Team specializes in these types of transactions by negotiating with your lender(s) to allow you to resell the house at a price suitable for you and a buyer.  At the end of the day you can possibly walk away mortgage free and possibly financial assistance to relocate and start over.

Many homeowner’s whom are facing foreclosure tend to be “upside down” on their property; meaning they owe more than the property is worth, or cannot afford to sell their property and pay all costs associated with selling. This is when a short sale is most appropriate.

Why would a lender agree to accept a short payoff on a mortgage? What is their advantage versus foreclosuing?

  • In California, the foreclosure process can be confusing. You need proper representation to help guide you through the process.
  • The foreclosure process and repossession of the property costs the bank(s) money and often result in the property sitting vacant for a substantial amount of time. This leaves the property subject to vandalism, theft and damage from neglect.  Short sales allow the bank to gain the highest net profit with the lowest cost.
  • Lenders do not like excess inventory or foreclosures on their books, especially in this market.
  • Lenders can risk losing more money if the property goes to auction.
  • Lenders are not in the property management or real estate brokerage businesses and have no intentions to getting in to them. ‘
  • Lenders are in the business of loaning money to individuals who buy properties, they are not in the business of loaning money on properties and then taking them back via foreclosure, and finally reselling them for a discount. This would not be a very profitable business model & one thing most banks do well is make more money than it loses.

Why should I consider a short sale?

Most simply, to avoid a FORECLOSURE and the stress and financial implecations that go along with it. A foreclosure can be extremely damaging to an individual's credit report and have long-term effects on your credit rating for several years. In some cases filing for bankruptcy can be less damaging than having a foreclosure on your credit. We live in a credit driven society and keeping a good credit rating can save you and your family thousands of dollars in finance rates for vehicles, home mortgages, and other large items. A negative credit report and poor score can affect everything you do from renting an apartment to buying a car.  With a short sale, you'll find that you are able to save your credit and rebuilt much quicker than if you allow a foreclosure to occur.

Short Sale VS. Bankruptcy

When faced with foreclosure some individuals may turn to bankruptcy as an option to solving the problem. Filing for bankruptcy will consolidate your debt and can wipe out your liabilities, but it will not prevent an eventual foreclosure if the bank has already started the process. A bankruptcy only delays a foreclosure. However, if all you need to do is delay a foreclosure and there is little to no other major outstanding debt which needs to be settled, then there are other methods which may be more suitable. Trying to conduct a short sale while in bankruptcy requires strategy and a plan. It is best to consult with a knowledgeable bankruptcy attorney prior to making any decision in order to gain the proper information and make an appropriate plan.

If your home is the only debt that is creating an uncontrollable situation for you, a short sale option is likely your best bet VS. a bankruptcy.

What can qualify me for a short sale?

In order to qualify for a short sale, the seller/homeowner must show legitimate hardship. Below is a list of common legitimate hardship situations.

  • Borrowers unable to keep up with current mortgage payments
  • Divorce
  • Death
  • Relocation
  • Over valued properties
  • Predatory lending situations/mortgage fraud
  • Loss of job
  • Unable to sell your property due to market conditions
  • Loan amount is higher than you can currently sell your property
  • and many other reasons…

Frequently asked questions

What if I have more than one mortgage on my property?

This is a common situation. Negotiations with each lender will be performed during the process. As in anything else, the more lenders needed to short, the more time consuming and complex it can get. In the “Foreclosure Facts” section you will find more information regarding Liens & Mortgages that you will find helpful.

How much time does it take?

From the day you accept a contract to the time the property will close can take up to 90-120 days. However, if negotiations go poorly the process may be extended. No two short sale deals are alike and every seller has a different situation, but we will put 110% into each deal to get it approved and closed.

What if I have already filed bankruptcy?

Just because you have already filed bankruptcy does not mean you cannot do a short sale. Bankruptcy may cure your debt and liabilities, but it will not save your credit. Whether you file for a chapter 7 or 13 bankruptcy, you can still do a short sale, there is just more paperwork involved and it will take a bit longer to complete. If this is your situation, a strategy should be mapped out between your bankruptcy attorney, agent, and processor (the individual who will actually negotiate the short sale) to determine the right course of action for you to take. We have worked with many bankruptcy attorneys in the Sacramento area to structure deals such as these.

What about property taxes I did not pay?

They get paid at closing from the lender since title has to be free and clear when transferred to a new buyer.

Are all short sales accepted?

If the lender believes they will net more money for your property through a short sale vs. taking the property back as a foreclosure/REO, they are likely to accept the offer. Many lenders are encouraging them vs. taking the property back. It is in the lenders best interest in most cases to accept a short sale vs. repossession/foreclosure.

Great, How much does this cost?

This process costs you nothing. When conducting a short sale, or any deal, you always must deliver free and clear title to the new purchaser of your property. While we are conducting a short sale with a lender all costs are taken into account and paid for by the lender. Part of the amount that you are shorting the lender includes all the closing costs typically associated with selling a home. These costs are viewed as a “wash” for any lender because if they took the property back, they would be responsible to pay them anyways. These costs include property taxes, title costs, attorney fees, back assessments, and even commissions, which is how we are paid.

Once in a while you may be shy of reaching the lenders requested net amount and you will have to go into your pocket to pay the difference, but this is rare. If you use the right representation you can avoid that!

How do I start a short sale?

Simple, make an appointment with one of our agents to schedule a consultation. All of our consultations are fully confidential and free. We believe it is best to give the short sale consultation first and provide the homeowner with ALL of the relevant information about short sales and the process. After the consultation we advise seller’s to seek out second opinions, check with an financial professional about any tax ramifications, and discuss the short sale with their attorney. This way the homeowner has performed the research, been educated in the process, and is able to make the best decision for themselves.


Asset Vu is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.