Southwest Florida's Premier Real Estate Company

Frequently Asked Questions


1. What is a short sale?

A short sale is where a lender agrees to accept less than the full mortgage amount owed by the homeowner in a sale of the property to a third party. The great advantage of a short sale is that once completed the homeowner is released from the mortgage by the bank and avoids being foreclosed on.

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2. How does the short sale process work?

Once you contact us, we will personally evaluate your situation. If it is determined that a short sale is in your best interest, we will help you to do everything to accomplish this. This includes helping with paperwork, contacting banks and mortgages companies, working with buyers, and getting the transaction closed.

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3. How do short sales help to prevent foreclosures?

For a number of reasons, banks do not want to foreclose on your property. They would much rather have you complete a short sale. That is why, often times, even if the foreclosure process has begun, the bank will hold off on foreclosing if they receive a good short sale contract. Those are some of the reasons we recommend to so many of our clients that they consider a short sale before simply giving up and allowing their home to be foreclosed upon.

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4. How long does the short sale process take? If I am facing foreclosure, can we speed up the process?

Generally, the process takes between one to four months. If you are facing foreclosure, please talk to us as soon as possible. Once your lender knows that you are pursuing a short sale, they will generally put off the foreclosure process and allow the short sale to go through.

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5. How much will I have to pay to short sale my home?

We know what a difficult situation you are in so there are no fees to the seller.

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6. Do I qualify for a short sale?

What the bank is looking for is hardship, either a loss of income, or divorce, or illness, or something of that nature. Anything legitimate that will make the bank believe that the mortgage will become delinquent will usually be grounds for hardship.

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7. Why would my bank agree to do a short sale?

As we said above, believe it or not, but banks don’t want to foreclose on properties! It is bad financially for them, it is bad for the communities they work in, and it is bad for the consumer. They would much rather work with you on a short sale.

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8. How will a short sale affect my credit?

It isn’t great, but it is immeasurably better than a foreclosure or bankruptcy. A foreclosure will show up on your credit report as exactly that. It will stay on your credit for seven years and severely hamper your ability to get new credit. A short sale usually shows up as settled debt and is far less damaging. It shows to creditors that you actually worked hard to avoid a foreclosure.

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9. What is a deficiency judgment and do I have to be concerned about it?

A deficiency judgment is a possibility at the end of a short sale. The amount the bank loses they have a choice; 1: Write 100% of Mortgage amount off as a loss 2: Go after the deficiency which is usually 20%-50% of the mortgage amount. The deficiency on a short sale is much less than on a foreclosure. If they foreclose, you are 100% deficient, instead of 20%-50%.

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10. Do banks approve every short sale that is presented to them?

No they do not. That is why you need a professional firm to help you to make sure that your short sale goes through the bank with the least amount of stress.

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11. How do I get started in the process?

Contact us as soon as possible. If you are facing foreclosure, or believe that you may soon have trouble making your payments, the sooner that we can begin the process the better for you.

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12. Why shouldn’t I deal with an investor directly?

An investor is an unlicensed individual looking out merely for their best interests, not specifically the homeowner or the bank. As an unbiased third party, we at Capital One Mitigation attempt to work out the best deal for all parties concerned.

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13. What are the advantages of a short sale?

If you are underwater on your mortgage, that is, you owe far more than your home is worth, then a short sale may be right for you. The biggest advantage of a short sale is that you sell your home, get out from all that debt, avoid foreclosure, and have the ability to then start over. Some other advantages to a short sale is that in a short sale, your existing bank pays for almost all of the costs (like escrow fees and commissions) of the sale of your home.

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14. I have a Moral Dilemma doing a short sale.

A lot of people are thinking, I made a contract to PAY MY MORTGAGE in FULL, if I do a short sale is my word no longer valuable? The fact that you ask this question I applaud you. The important thing to understand is that to do a short sale you must have a lot of debt, and a decreased income. When you signed the mortgage it was based on a specific debt your family had in comparison to the income you brought in, if that has changed, then a short sale is OK, and your word is still GOOD!

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15. What are some of the things that I can do to avoid a foreclosure?

Your main options are a loan modification / refinancing or to sell your property, either through a conventional sale or a short sale. If you are underwater with your mortgage, it may be difficult to come up with the funds to pay off your mortgage. If that is the case, then a short sale may be your best option.

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