Short Sale FAQ
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What Happens When You Short Sale Your House to Blue Sky LMS?
People all over New Jersey have trusted Blue Sky LMS to negotiate a short sale and buy their property.
Q.1 What does it mean to short sale a house?
A short sale is a method by which you can get out of a loan that you can no longer afford without going into full foreclosure.
Q.2 How will a short sale affect my credit?
A short sale is bad for your credit, but not nearly as bad as a foreclosure. It will be very hard to obtain a loan within a year of your short sale. FHA financing will not be available for two years. This, however, is much better when compared with the 7 years that usually follow a foreclosure.
Q.3 Will the lender come after me for the debt?
Not if you do a short sale with Blue Sky REI! We negotiate out the right to collect as part of the terms of our short sale. However, in a foreclosure, the lender can sometimes pursue a deficiency judgment.
Q.4 How else is a short sale different from a foreclosure?
In a foreclosure, the bank actually takes possession of your house and tries to sell it; first at a “sheriff sale”, which is an auction at the court house, and then, if it doesn’t sell, it becomes a REO or bank owned property and sold through a realtor.
Q.5 Why would my lender take less than the loan amount?
Foreclosures are expensive for the bank. There are many legal fees associated with taking possession of a property via foreclosure. It is also time consuming. Once that is over, the bank then has to sell the house in order to get their money. This also takes time. The lender is taking a loss either way, but in many cases they will take less of a loss during the short sale.
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What types of property does Blue Sky REI buy?
We buy many types of residential and commercial property, including undeveloped land.
Q.1 Do you buy condos and townhouses?
No. Due to the current real estate market and the difficulty negotiating discounts with the lenders, we do not do short sales on them.
Q.2 Do you buy mobile homes?
No. We buy mobile home parks though.
Q.3 Do you charge to do my short sale?
NO! We have a free consultation where we will explain the process and determine the best course of action to quickly help.
