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Frequently Asked Questions
General
Q: Why would my lender agree to a short sale?
A: Simple fact. Whether you foreclose or short sale, the lender is going to take a loss. For the lender, it is a business decision. The short sale costs less than having to take the home back, pay the attorneys, the realtors and repair to resell it often for less than they get in the short sale scenario.
Q: Can I negotiate a short sale myself?
A: A short sale is a very complex transaction. Even agents and companies who claim expertise are only successful 25% of the time. Lighthouse closes 97% of our transactions. And since working with Lighthouse costs you nothing, why take the risk with your credit, your future and your family?
Q: When should I start working on a short sale?
A: As soon as you know you might be in trouble. You don't have to be behind on your mortgage to start the process. If you have negative equity in your home, we can start helping you today.
Q: I'm facing foreclosure. What are my options?
A: Your options include deed in lieu, short sale, loan modification, or foreclosure. Learn more.
Q: Some people tell me to just walk away. Why shouldn't I?
A: A foreclosure has serious implications for your credit and taxes. More importantly, you may also end up owing the full amount of the loan to your lender.
Q: Wouldn't it be better to just file for bankruptcy?
A: Not usually. Bankruptcy may be an option for some, but it is a solution of last resort because, like foreclosure, it has the worse effect on your credit and stays on your credit report for ten years. Based on current Fannie Mae Guidelines, you will be ineligible to borrow for a new home for four to seven years.
Q: Is a short sale right for me?
A: Only you can decide if a short sale is best for you. However, if you are facing foreclosure or if you have negative equity, a short sale can give you the best possible outcome. Lighthouse makes sure your situation is individually considered by making tax and legal advisors available for a consultation at the outset of the process. Learn more.
Q: How do I get started?
A: Getting started is easy. Call (951) 296-9363 or complete this short form and and experienced Lighthouse coordinator will call you.
Q: How much does a short sale cost me?
A: Lighthouse Short Sale is no cost, no risk to homeowners.
Q: Can I work with Lighthouse if I live in a different state?
A: Our network of distress sale experts allows us to help you anywhere in the United States.
Q: Can Lighthouse stop a foreclosure?
A: Usually, yes, but your chances are better if you start sooner. Don't wait. Call us today. (951) 296-9363.
Q: How can I be sure Lighthouse can work with my lender?
A: Lighthouse has successfully worked with hundreds of lenders and our process will work with every lender.
Q: How can Lighthouse do this at no cost?
A: We actually don't. There is no cost to you the homeowner, but the lender will typically pay agents their commission due which is how we collect our fees.
Q: Why do I need to transfer title to Lighthouse Short Sale?
A: You don't. In fact, we strongly urge that you do not follow this course of action with anyone with exception of rare circumstance and with the guidance of legal counsel. There is typically no need to transfer title during the course of a short sale. Any investor wishing to purchase your home can do it through the standard short sale process.
Q: Can you stop collection calls from my lender?
A: Usually. Once we receive your signed documents, all communication with the lender can go through Lighthouse or your attorney. If the bank does not honor this request they may be subject to legal penalties.
Q: How long does the process take?
A: No short sale is the same. It depends on the lender, the geographic area and the amount of the loan, among other things. A good average is 60 to 90 days. Lighthouse will manage the process and will take responsibility for your home so you can plan to move out at a time that is convenient for you. If you prefer to wait, we will coordinate the move out with the lender approval of the short sale.
Q: What if my situation changes after I start the process?
A: Simple. You can cancel the transaction.
Q: What if my real estate agent wants to handle my short sale?
A: Lighthouse is not only a real estate agency, we are a network of nationwide real estate professionals with specific expertise to handle the sale of your property. If you are uncertain, we suggest sticking with our trained professionals. However, if you believe you know a real estate agent that meets our criteria, have them visit our site or give us a call. We have programs to help your agent negotiate the best deal for you.
Q: How will a short sale impact my credit?
A: A short sale will show on your credit report as mortgage debt settled for less than the amount owed. Depending on the circumstances of your short sale, Lighthouse is often able to eliminate all negative credit reporting. If that is not possible, according to current Fannie Mae guidelines you will be eligible to borrow for a new home in no more than two years. Learn More.
Q: Will I lose my house?
A: You will not be losing your house, you will be selling it. In a short sale, the bank agrees to settle your debt for less than you owe. The settlement comes from selling your home. We keep you informed of our progress as we work with the bank so you can plan your transition accordingly.
Q: Will I owe taxes?
A: A short sale helps reduce any tax consequence you may have; however, there are many factors to consider. We are not tax advisors but we have numerous experts we work with who can offer legal and tax advice. When you work with Lighthouse, a counselor will review your particular situation and let you of potential tax consequences at the start of the transaction.
Q: Will I be responsible for the mortgage deficiency?
A: In some states the homeowner would be responsible for the deficiency between the amount owed and the short sale amount paid. However, Lighthouse gets the deficiency waived as a condition of every settlement.
Q: When can I buy a house again if I have a short sale on my credit?
A: Typically within two years, sometimes shorter depending on your specific situation. If you go into the short sale with good credit, we will work hard to protect your credit and minimize the impact. You stay in control until the outcome is certain.
Q: Will I make any money from a short sale?
A: No. The lender is accepting less money than it is owed and will typically not allow the homeowner to profit.
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