Thanks to everyone who came to visit with us last night at our Short Sale Seminar and Happy Hour. We heard a lot of great questions focused mainly on Condo short sales and the issues that many homeowners are facing right now. Many bought their condos in the height of the market when prices were high in new and existing communities and now they’re trying to decide what they’ll do about the fact that they can’t sell for the amount they paid and owe their lenders. Here were just a few questions we answered:

Can we live in our home during the short sale process? Yes you can. Whether you continue to make your payments or not, you can live in your home until the day of closing.

What cash are we required to bring to the table at closing? In the majority of cases, nothing. There are times when a particular bank will be tough in their negotiations and insist the borrower pay for some items, like, for example, overdue condo fees not paid during the duration of the short sale process. The key is to communicate regularly with your realtor so we know everything and can deal with it proactively.

Can I get a guarantee that the lender won’t come after me for the remaining balance of the loan not paid off at closing? Yes, as part of our service we work to negotiate what is called a waiver of deficiency. The bank states in an official approval letter that they will “charge off” the remainder of the loan that’s due and then give instructions concerning tax consequences. There are minimal cases where we simply cannot get the bank to agree to issue this letter, but we – to this date – have never seen a bank go after one of our clients for the remaining balance of their loan.

Can I short sale and still be able to qualify for Security Clearance? It is our experience to date that YES, you can. A short sale on its own does not challenge most security clearances. We have closed short sales for clients who have security clearance and they have not had a problem. The key, we understand through industry experts, is that the employee be “proactive” in protecting their security clearance and be very honest about their situation. We also suggest our client/government employee write a letter explaining their plans and experience. Click here to see a sample of a letter used for such a situation: Security Clearance Letter

Thanks again for coming everyone. If you or someone you know need our help, call me at (703) 774-9572   jennifer@jyhteam.com.