: short sale defined - FAQ Q: What is a short sale? A: A short sale is the sale of a property for less proceeds than the outstanding balance of the mortgage(s), and the lender agrees to accept less money than is owed in full satisfaction of your mortgage. Q: Is a short sale the right solution for me? A: If the amount of your mortgage exceeds the value of your property, a short sale may be your ONLY viable solution. Other options are continuing to pay your mortgage with no hope of every recovering those payments, or defaulting on your mortgage and being foreclosed upon. Q: Why use SSS National, LLC? A: SSS National, LLC is a team of dedicated professionals with years of mortgage and short sale experience who will handle all aspects of the short sale process and your individual transaction. In addition we introduce your property to our investors which is a key element of a successful short sale. SSS National, LLC is a one stop financial services company that will work with you to find the solution to your situation. Contact us at 1-877-899-SOLUTION (7658). Q: How much will I have to pay at closing if I do a Short Sale? A: In most cases you will pay nothing. Commissions, title and escrow fees, HOA dues, real estate taxes and most repair expenses are paid out of the proceeds of sale at closing. Q: How will a short sale affect my credit? A: A short sale will enable you to avoid the most damaging mark on your credit report, which is a foreclosure. The impact of a short sale on your credit is far less damaging than foreclosure but a short sale may leave a negative mark on your credit report. Other negative marks on your credit report may occur if you are delinquent on any payments to your lender. Q: How do I get started on a Short Sale? A: It is easy. It is as simple as contacting us at 1-877-899-SOLUTION (7658). We will work with you to determine if you qualify for a Short Sale Solution. Q: What is a hardship letter? A: A hardship letter is your explanation of why it is likely that the lender will not recover the full amount of the loan or that your continuing to pay your mortgage will create a severe hardship for you. The hardship letter sets the tone for the entire process. At SSS National, LLC we work with you to help set that tone properly. Q: Will my lender accept a short sale if I am current on my mortgage? A: YES. Lenders accept Short Sale files for approval for loans even if you are current on your payments. Q: Why would my lender agree to a short sale? A: There are several reasons why lenders agree to short sales. Among them are the following: Governmental pressure - Due to the unprecedented economic climate we find ourselves in, lenders have come under pressure to work with borrowers to resolve situations in which borrowers have mortgages that far exceed the value of their properties. Costs and expenses - It is far less expense for a bank to accept the fair market value of a property today in satisfaction of the mortgage than to incur the cost to foreclose and the expenses of maintaining a property. Regulatory Issues - lenders face far higher reserve requirements if they are forced to foreclose on the property. In addition there are increased reserve requirements for delinquent and non-performing loans. A Short Sale frees up these additional reserves and allows the lender to put more money to work. Q: Do lenders approve all short sales? A: NO. That is why it is critical to work with experienced professionals such as SSS NATIONAL, LLC. We have extensive experience in getting Short Sales approved. We know what the lenders want from the initial package letter, including your hardship letter, right through the approval process. Working with an experienced group such as SSS National greatly enhances your chances of a successful Short Sale. The first step to getting your short sale approved is to call us at 1-877-899-SOLUTION (7658). Q: Can I do a short sale even though I own more than one unit? A: YES. SSS National, LLC frequently works with owners who own multiple units. Q: What is a restructuring or forbearance agreement? A: A restructuring or forbearance agreement is a written agreement with your lender through which you arrange to keep your property. While repayment terms may be modified, you remain liable for the outstanding balance of the mortgage, regardless of the value of the property. If you owe $200,000 on a property that is worth only $40,000, you would typically still owe the lender the full $200,000 after a restructuring or forbearance agreement.