FAQ's

Will the short sale affect my credit?

• A short sale can be significantly less detrimental to your credit report. Instead of stating "Foreclosure" your report will read "Lender settled for less than amount due". This can be the difference between an 80 to130 point loss of your credit score vs. 250 to 400 point hit with a foreclosure. Additionally, the short sale will only remain on your credit report for two to three years vs. seven to ten years with a foreclosure.
• Even if your foreclosure and possibly bankruptcy resulting from the foreclosure are technically past their life span on your credit report, they will continue to appear on your credit until you begin working with all three credit reporting agencies.

Will I receive a 1099?

• Probably, if you sell your property for less than the amounts due on the mortgages you will receive a 1099. It is an accounting issue. The bank(s) will show a loss and they have to show a gain elsewhere. The Mortgage Forgiveness Debt Relief Act will protect homeowners if the property sold is their primary property. We recommend that investors consult with a CPA for information on their liability in this situation.

Will I be liable for the deficiency?

• That depends on your specific situation. If you have what is called "purchase money" first and second loans, you have a very good chance for the bank to waive their deficiency rights. The short sale documents will include a "Release of Liability" clause. This will waive the lenders' deficiency judgment rights against you on any monies due. This means that you generally can walk away from the sale of your home with no further liabilities to the bank.
• If you have refinanced and/or taken cash out in the last few years, the banks may or may not want some form of repayment or partial repayment. Our negotiators are not paid unless you accept the bank's offer. It is their responsibility to get you the best deal possible. In some cases, a promissory note will be negotiated to a small percentage of the deficiency.

How long does the short sale process take?

• Generally from 60 to 180 days. The first thirty (30) days is spent listing and identifying a buyer. From there, your financial package and the purchase contract are sent to your bank(s) and the negotiations begin. This can take from 45-90 days.

What if I do not accept the banks' offer?

• After you sign the purchase agreement and it is sent along with your financial hardship package to your bank(s), we will begin the negotiation period of the process. When the bank makes an offer to accept the short sale and you are not satisfied with the conditions, you do not have to go through with the sale. Again, our negotiators are not paid if you do not accept the offer so it is incumbent on them to get the best deal possible.

If I don't have a successful short sale can I still foreclose?

• Yes, the foreclosure process generally is not interrupted by the short sale.

What if I currently have my house listed with a realtor?

• In order to work with e Home Connect, your realtor must agree to work with us. Our negotiators are compensated at closing with 50% of the listing commission. If your realtor is uninterested in splitting their commission, we cannot work with them.

What if I cannot establish hardship?

• There is always a reason of hardship. We will work with you and review your documents to establish hardship.

What if I want to stay in my property for as long as possible?

• We can work within your time frame and figure out how much time you have to work with.

What if we no longer live in the property?

• That is fine; the realtor will have to be given access.

How is eHomeConnect different than my Local Realtor?