short sale appointments

Short sale listing appointment: how to breeze through any meeting

January 8, 2013
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short sale appointment Short sale listing appointment: how to breeze through any meeting

Mortgage Debt Relief Act Extended

Now that the dust has settled on the fiscal cliff vote, most short sale sellers, prospective short sale sellers, and agent have heard that the Mortgage Debt Relief Act of 2007 has been extended another year. Savvy short sale sellers previously “on the fence” about listing their property due to the tax consequences are picking up the phones and calling their agents. Now, they are ready to list.

5 Questions from Prospective Short Sale Sellers

In addition to questions about the tax consequences of a short sale (which should only be answered by a qualified tax professional), here are five additional topics that will likely arise in your short sale listing appointment, so be prepared!

  1. How long will the short sale take? There are so many factors that impact the speed with which a short sale is approved that it is hard to say. If there are multiple liens at different lending institutions, the short sale usually takes a little bit longer to process. Depending upon the skill set and cooperation of all of the parties involved (including the bank employees) and provided the buyer sticks around during the process, the short sale could take anywhere from 6 weeks to 5 months.
  2. Will the bank come after me at closing? Certain states have deficiency statutes that protect short sale sellers from any legal ramifications after closing. Otherwise, it’s a good idea to negotiate with the lender and assure that the short sale approval letter clearly states that the lender waives the right to pursue the deficiency balance after closing.
  3. Will I get any relocation assistance money? The Treasury Program, (entitled HAFA-Home Affordable Foreclosure Alternatives), Fannie Mae, Freddie Mac, and many of the major lenders can offer relocation assistance money to short sale sellers at closing. There are certain guidelines whereby the money is paid and it is always paid on the closing day, not before.
  4. How will the short sale impact my credit? Each person’s situation is so unique that it is really hard to say. Your credit score is based on a number of factors including the number of late or missed mortgage payments as well as the short sale itself, which is often reported as “paid settlement” or“paid for less than full amount.”
  5. Can I sell my home in a short sale if I am current on my mortgage? There are all sorts of reasons that a person would need to sell his or her home in a short sale. Loss of income is just one reason. Others may include, divorce, death, decrease in income, adjustment in mortgage rate, incarceration, and excessive credit. The investor on each loan has guidelines for approving the short sale, and some can approve a short sale if the seller has no late payments.

With the answers to all of those questions in hand, I imagine that your next short sale listing appointment should be a breeze!



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Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.



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