Short Sale 101

Welcome to our website. We are dedicated to providing our clients with the finest customer service available and hope we can help you with you with your Short Sale.

We pride ourselves on being experts in the Short Sale porcess. We have closed 99% of all the short sales we have hadled and have built relationships with most banks, including Bank of America, Litton Loan Servicing, Suntrust, Wells Fargo among others. With our years of experience in real estate sales, no one knows short sales better!

Our web site has been designed to provide you with the information you need to make the right real estate decisions. So check it out and then give us a call or send us an email.  We are here FOR you !

Frequently Asked Questions:

What is a short sale?

A short sale is a work-out program offer by most banks to allow the homeowner to sell the property for less than what is owed. Banks may handle the deficiency (balance owed to the bank after the sale) in many different ways, it could be forgiven, a promissory note could be issued or you could get a deficiency judgment. Each bank is different and many factors determined the outcome.

For example, someone short selling a primary home with just one mortgage could expect the following:

If there is mortgage insurance, be prepared to contribute some funds toward the debt or to sign a promissory note for at least 10% of the deficiency in order to get the short sale approved.

Why would banks agree to approve a short sale?

Banks are in the business of lending money and they are not interested in acquiring undervalued real estate. Accepting a short sale will save the bank money and time since no lawyers will be necessary to foreclose on you, the property will be maintained by the homeowner while being sold, and the property will be liquidated faster.

Why should I short sale VS foreclose?

         A short sale will help you avoid the embarrassment of being on the foreclosure section of the newspaper.

         You wont have to worry about coming home to a house you cannot access because all locks were changed after it was repossessed.

         A short sale will be reported to the credit bureaus as settled account and not a foreclosure; you want to look good to banks in case you need credit again.

         You will know when your house is being sold which will give you 30-45 days to find a new place and pack all your belongings.  

         All that you owed on your home will be off your shoulders and off your credit report. You will be ready for a fresh start.

         You may be able to qualify for a mortgage loan in 1 2 years after the short sale.  

How much do I have to pay a Realtor to short sell my house?

You pay $0, nothing, not a penny to us when you short sale your property. Our commissions and all escrow fees are paid by the bank.  Even pass dues on the home owners association, trash and sewer may be paid by the bank leaving you free of all debt related to your property.

Do I qualify for a short sale?

You may qualify for a short sale if:

How long will it take to short sale my house?

It all depends on your mortgage servicer. Some banks can approve a short sale in 8 weeks; others could take up to 6 months. It is very important to follow up with your bank on a weekly basis since most negotiators handle hundreds of files all at once making it very easy to be forgotten.

What do I need to start the short sale process?

1.       Contact us immediately at 702-477-5875 or shortsale@johnmontesLV.com to provide you with a market analysis of your home in order to determine the current value.

2.       List your house for sale

3.       Get a qualified buyer

4.       Have your Realtor submit a short sale package to your lender

Why should I choose John Montes & Associates to handle my short sale?

We have experience with the short sale process after negotiating with over 20 different lenders and handling almost 100 loans over the last 2 years. We are proud to have a perfect 100% success rate on all  short sales we have negotiated.

What is part of the short sale package?

         The short sale package includes the following documentation:

         Listing broker agreement

         Purchase agreement

         Estimated HUD1

         Buyer pre-approval letter

         Borrower financial worksheet

         Last 60 days of paystubs

         Last 2 bank statements

         Last 2 income tax returns

         Hardship letter

         List of comparable properties supporting the current value.

What do I need to do once the short sale package has been submitted?

Leave all your worries to us. We will update you via email or call you on a weekly or bi-weekly basis to inform you of the progress or request of any additional documentation by the bank. We will do all the calling and follow up on the short sale process for you.

Most banks will have an appraiser visit the property within 3 weeks after the short sale package is submitted. The appraisal report will be used by the bank to determine if the offer being considered is close to current market value.