Please browse through our collection of frequently asked questions on short sales and the overall process. If at any time you have any additional questions or concerns, please contact Bryan Firth.

NO! Its important to note that you PAY NOTHING for my services or any other fees relating to the short sale. The bank pays all fees including my commission, back real estate taxes, attorney fees, title fees, and even a portion of mechanic liens or credit card liens!
I have been able to successfully get the bank to postpone the foreclosure sale date on numerous occasions. However, just starting a short sale listing will not automatically stop the foreclosure. We do have a good chance, however, of getting the sale date postponed with a bonofide offer.
One service I provided for my clients is helping them find another place to live. Once we are about 30 to 60 days away from closing, I will help you find a rental property. I know exactly what landlords are looking for in a tenant, and I can help you with this process.
The short sale process is a lengthy one. It may take several weeks or more likely a few months to get an approval. Many lenders have several layers of bureaucracy, insurers, and investors that I will have to maneuver through in order to get a short sale approved. Once the short sale is approved, you will have to move. However, you definitely can stay in your home during the marketing of the property and during the negotiation process.
A short sale occurs when a lender agrees to accept a discounted payoff on the mortgage as an alternative to foreclosure. If the lender forecloses and takes the house back, they will most likely take a huge loss. I can often convince a lender they will do better if they take less than what is owed now, rather than foreclosing later.

For example: If the unpaid balance of a loan is $200,000, a property sells for $150,000, and there are $20,000 in closing costs, a short sale lender might accept a payoff of only $130,000.

In some cases, a second or even third mortgage may exist on a property. When this occurs, the process becomes much more complex. I will need to negotiate between the existing lenders as to the actual payoff amount they are willing to accept in relation to the other lenders. The important thing to remember is that negotiating with banks and lien holders is my specialty and I have a vast amount of experience and knowledge in this process!

Possibly, YES!! As part of the newly implemented Home Affordable Foreclosure Alternative (HAFA) plan, qualified home owners can get up to $3,000 as a relocation expense! There are also several different incentive programs available outside of HAFA. For example, one of my clients received a $3,000 HAFA incentive as well as a $10,000 chase incentive!!! Please see my Success tab for more examples.
Most likely, when a bank agrees to a short sale, they will send you a 1099 for their loss. In some situations, there could be tax consequences. However, the Mortgage Debt Relief Act of 2007 was enacted to help people who participate in a short sale on their PRIMARY residence. If you qualify, you will not have to pay tax on this money. Please consult your accountant for further explanation and legal advice on this matter.
The lender will need a financial package that usually includes: 1. A  financial statement showing expenses vs. income. 2. Your last 2 years tax returns. 3. Your last 2 months bank statements. 4. Your last 2 pay stubs. 5. Hardship letter explaining your financial difficulties. The leading cause of delay and even denial of our offer to the lender is caused by the seller failing to provide these documents in a timely manner. The timely delivery of these documents is crucial.
Everyone CANNOT do a short sale. You must be qualified. The basic qualification is that you MUST have a specific, verifiable hardship. Some of the common hardships are, loss of income, reduction of income, divorce, medical, death of one of the borrowers, job transfer, and an increase in expenses and debt. The bank will want you to prove this hardship. For example, in the case of a reduction of income, they will want to see your pay stubs showing the loss, or they will want to see a copy of medical bills. One of the deciding factors will be when they compare your current income with your current expenses. If you show a large surplus of income after expenses, they may not approve the short sale, or they may ask for a small seller contribution. If you need any help with this, or have questions, please feel free to call me so I can diagnose your situation.
There are many advantages! The biggest advantage, in my opinion, is the possibility of being able to walk away from your mortgage debt! In most cases, the bank waives the “Deficiency balance”, meaning they agree NOT to come after you for the amount of money they lose! In most of foreclosures in Illinois, the bank has the right to pursue you for the deficiency judgement.

Some other advantages are:
•CREDIT SCORE: Foreclosure may lower your score from 250 to 300 points. A short sale may lower your score by only 100 points.
•ABILITY TO GET A MORTGAGE IN THE FUTURE: A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed loan for 5 years. A homeowner who has a short sale successfully negotiated will be eligible for a Fannie Mae backed loan in as little as 2 years.
•CREDIT REPORTING: Foreclosure will remain as a public record permanently and on a persons credit history for 10 years. A short sale is not reported on a credit history. There is no specific reporting item for “short sale”. The loan is typically reported as, “paid in full, settled”.



2405 Harnish Dr

Algonquin, IL 60102

Phone: 847.951.1233






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