Short Sale Site for the Portland Metro and Oregon area

Our mission is to give you the best information we can to help you make the best real estate decisions possible.

First of all, let's discuss some of the important features of a Short Sale.  What do you do when you need to sell your house, but you owe the mortgage company (the "Lender") more than it is presently worth?  Options include declaring bankruptcy, foreclosure, and short sale.

1.  What is a "Short Sale"?

A Short Sale occurs when a property is sold, and the proceeds from the sale will not fully pay off all the loans (and/or liens) on that property*, and one or more of the Lenders of those loans actually agrees to accept less than the full amount owed  and also agrees to release the home owner from any future pay-off requirements.  (*This situation is often called "negative equity", or being "upside-down in the loan")

Example:  In 2007, a person buys a home for $310,000, borrowing $300,000 from a Lender. 

In 2008 they have a hardship (loss of job, death of spouse, health problems, etc.), get behind on payments and need to sell the home.  But the real estate market has changed and the reasonable selling price of the home now is $250,000, leaving a $50,000 deficit owed to the Lender.  

A Short Sale request is a process by which the Lender can be asked to accept the $250,000 and release the borrower from any further obligation for any repayment.

  $300,000 Total owed to the Lender
- $250,000 Sales Price of the home
    $50,000 Amount that is "short", which the lender may agree to forgive.

2.  Why would a Lender agree to a Short Sale?

Lenders are not in the real estate business!   They do NOT want to "own" a home.  If they take possession of a home that is now vacant, they must take full responsibility for that item;

• Taxes.  The Lender will still have to pay them!  He likes YOU paying them!
• Critical utilities can be issues (pipes freeze in the winter for example)!
• Theft (vacant homes are BIG target for thieves!  You've seen these articles in the newspaper!).
• The lawn dies.  The roof leaks, unnoticed.  Storm damage.  And on and on....   

Believe this; the BANK does NOT want to own your home!  Estimations vary, but reports are available stating that each home a Lender takes in foreclosure COSTS the Lender, by the time it is sold, between $15,000 and $40,000!

So, to keep these homes off their balance-sheets, Lenders need to sell them, and it's best for them if you stay in the home while it is on the market!

More often than not, these are situations that the MORTGAGE COMPANIES caused by offering ridiculous loan programs that they knew would fail many home owners in the short term.

3.  Is a Short Sale Easy to begin and complete?

NO!  And anyone who tells you differently is not telling you the truth!  Short Sales are very tricky and many will be applied for and not accepted by the Lender for little or no reason.  It is totally up to the Lender to accept or decline any Short Sale offer.  And it is a MOUNTAIN of RED TAPE!  To get the Lender's decision may take 60-90 days!

That is why it is SO IMPORTANT that someone who needs to have a Short Sale to rid themselves of an unworkable situation, needs to ask the services of a qualified Short Sales agent, to help cut through all the RED TAPE!

4.  Whom should you contact in order to begin the investigation into a Short Sale?

A qualified Short Sales agent, who is a licensed real estate broker is a good place to start.  Also, you will need to have an attorney to discuss the legal details of your options and to review any paperwork or documents prior to you agreeing to any of the terms.

As with any financial decision, please consult with an attorney and a qualified tax adviser before signing any documents.  This is a serious situation and you will need their professional advice.  We can give you references for these professionals, for you to contact and discuss your situation, as needed.

If this sounds overwhelming, we understand!  It is a very serious situation.  But, please, do not despair.  The situation may be serious, but it is not hopeless! 

5.  There is HOPE!!!

Contact us and we can help you quickly identify what you need to begin your investigation into getting the best team together to get you out of this situation and into the best situation available.  We will not charge you ONE PENNY for our help.  IF we are able to help you and get a Short Sale accepted by your Lender(s), THEY will pay our fee.

All calls and information are completely confidential.  We will not do anything on your behalf without your full, written permission.  We understand your situation, are sensitive, and make no judgments.   Let us help you.