If a homeowner owes more on their property than it is currently worth, then they can sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify.

Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, illness, excessive debt, forced or unplanned relocation, and more.

The lender will want to see that the home value is less than the amount of the loan plus closing costs.  They will also want to see that the homeowner does not have sufficient liquid assets to place into escrow to close a sale and pay off the loan.

Homeowner’s who may need to sell their home as a short sale need the assistance of a Realtor® who has comprehensive training in this specialized area.  Most lenders require the use of a Realtor® in a short sale. Guarantee Short Sale Specialist (GSSS) agents understand the complex issues that confront homeowners who need to gain the cooperation from their lender to obtain approval as a short sale.  Through extensive training and market experience, GSSS agents are able to provide real solutions that enable homeowners to avoid foreclosure.

GSSS agents are able to provide homeowners with a market analysis that will help them determine an accurate value in today’s market.  This comprehensive report is provided at no cost to the homeowner.

As with most real estate transactions, GSSS agents are paid on commission.  There are no upfront fees for their services.  The real estate commission is not earned until the transaction closes escrow and transfers to the new property owner.  In most cases the commission is paid from the proceeds of the sale.  In the case of a short sale this means that the lender agrees that the commission is an expense of the sale which reduces the amount the lender receives and is not paid by the seller.

For more information about Guarantee Short Sale Specialist (GSSS) agents, click on the “Guarantee Short Sale Certified Agent” tab

If you would like to meet with a Guarantee Real Estate agent who is knowledgeable about home values in your area, please contact us.  Or Find an Agent on guarantee.com; look for the Guarantee Short Sale Specialist designation of our Agent Profile pages.

• A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual's public record.  In many cases this may allow the homeowner to avoid a deficiency judgment. Borrowers may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).

• Shortsales can be a trying and complex process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way.

Guarantee Real Estate is not engaged in the practice of law nor do we give tax or legal advice.
It is strongly recommended that you seek appropriate professional tax or legal counsel regarding the transfer of real estate.

IMPORTANT NOTICE: Guarantee Real Estate is a real estate broker. The service we provide is to assist in the sale or purchase of real property.  We do not negotiate with lenders in an effort to modify mortgages.  It is strongly recommended that you seek appropriate professional tax or legal counsel regarding the transfer of real estate.  Guarantee Real Estate is not associated with the government and our service is not approved by the government or your lender.  Even if you use our service, your lender may not agree to change your loan.  If your home is listed for sale, please do not consider this as a solicitation to list your property..