What is a Short Sale?
A Short Sale is a real estate transaction where the sales proceeds, after seller-side expenses, are too little to payoff each lienholder at the closing table. The creditors who hold liens could include one or more mortgage holders, a homeowner’s or property owner’s association, the IRS or state Department of Revenue or judgment holders.
Is title clear in a Short Sale?
Title must be clear for any real estate transaction to close. To achieve clear title in a Short Sale, written approval must be granted by each secured creditor scheduled to receive less-than-owed at the closing. Jackson Law will work to obtain written approvals from each of those lienholders.
Are Short Sales difficult to complete?
Unless your short sale transaction is being handled by someone intimately familiar with the Short Sale process and the many hurdles and potholes that potentially exist over the life of the review and closing process, a Short Sale is extremely difficult. National rates are very low when it comes to closing a Short Sale successfully. Jackson Law has experience on staff that has worked on more than a thousand short sale transactions dating back more than a decade to The Recession where a significant segment of the housing market was underwater in the years that followed.
How successful will Jackson Law be obtaining all the necessary Short Sale approval letters?
If Jackson Law is given a sales contract at fair market value and a patient buyer there is a 90% chance of obtaining all necessary written approvals for the Short Sale to close.
How long will a Short Sale take?
That depends in part on how quickly and completely the seller, buyer and real estate agents provide the documentation the lienholder(s) will review and in part on how efficiently the lienholder(s) can navigate the review process. With Jackson Law handling the process most Short Sale transactions will be approved 60-90 days from the date a complete short sale package is submitted to the lienholder(s). The approval letters are usually valid for a window of 30-45 days for the closing to then take place in following approval.
How much does Jackson Law charge to facilitate a Short Sale?
Jackson Law’s Short Sale fee structure involves working on a contingent basis. That means there is no upfront fee and no fee unless your transaction closes successfully. Short Sale phone consultations are free as well. In approximately 80% of Short Sale closings Jackson Law will be paid an amount by the lienholder(s) sufficient to cover their fee. Only about 20% of Short Sale closings involve the procuring client (i.e. seller or buyer) paying a portion of Jackson Law’s fee out-of-pocket just prior to closing. Jackson Law does not collection any portion of the Real Estate Commission.
When should I contact Jackson Law about my Short Sale?
As soon as you’re thinking about selling, buying, listing or showing a Short Sale property, give us a call for your free consultation!