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Short Sale

What is a short sale?

This is a commonly asked question amongst homeowners struggling to pay their mortgage payment.

A short sale is the sale of real estate in which the proceeds from the sale fall short of the balance owed on the mortgage loan. The short sale process is complex and requires working with a licensed real estate agent with experience in short sales and authorization from the originating mortgage lender.

The term 'short sale' means the bank allows borrowers to sell their property for less than the balance due on the loan and borrowers cannot own assets which could be used to repay the debt.

Mortgage lenders usually require borrowers to submit a short sale hardship letter describing events which caused delinquency of the loan. The letter of hardship is an important element of obtaining short sale approval and borrowers should take time to carefully prepare it. Mortgage lender loss mitigators prefer that a hardship letter includes a detailed timeline of events, along with any action taken to overcome financial challenges. Lenders are more apt to grant approval to borrowers who lost their job or encountered medical problems than to those who engage in frivolous spending.

The short sale process typically takes between 30 to 90 days to complete. Borrowers will undergo a financial audit and are required to submit a myriad of documentation to the loss mitigant.

The benefits of a short sale is that the "short payoff" is typically reported as paid in full/settled or paid/settled for less than the amount owed. Some qualified homeowners may even qualify for a move-out incentive of up to $1000-$3000.

Military service members who receive permanent change of station orders can be considered eligible for financial hardship, which gives additional flexibility in a short sale. It eliminates the 55% or greater monthly debt-to-income ratio requirement if:

  • You are current or less than 31 days delinquent on your mortgage.

  • The property is your primary residence.

CBSHOME has designated a specialist, Kathy Cox, to assist with this transaction. Following are some of the benefits to you of utilizing Kathy's knowledge and experience:

  • The service is free to you

  • A short sale often eliminates your mortgage debts

  • Your credit will be affected less than a foreclosure or bankruptcy

  • We will keep you informed on the progress of the transaction through a secure, proprietary system

  • You can usually stay in your home for a longer period of time

  • Liens and judgements can typically be removed through this process

  • A greater probability of success with the short sale, meaning a foreclosure is avoided

Real Help Is Free! Avoid Scams.

Foreclosure rescue and mortgage modification scams are a growing problem that could cost you thousands of dollars - or even your home.

Scammers make promises that they can't keep, such as guaranteeing to "save" your home or lower your mortgage, usually for a fee, often pretending that they have direct contact with your mortgage servicer - which they do not.

Tips to Avoid Scams:

  • Beware of anyone who asks you to pay a fee in exchange for counseling services or the modification of a delinquent loan.

  • Beware of people who pressure you lo sign papers immediately or who try to convince you that they can "save" your home If you sign or transfer over the deed to your house.

  • Beware of anyone who asks you to pay a fee in exchange for counseling services or sign or transfer over the deed to your house.

  • Do not sign over the deed to your property to any organization or Individual unless you are working directly with your mortgage company to forgive your debt.

  • Never make a mortgage payment to anyone other than your mortgage company without their approval.



Our staff is professional, discreet and courteous. We will keep you informed throughout the process and assist you in collecting the information that will be required to gain approval from your lender(s).
Your agent will continue to represent you, but with the assistance of CBSHOME's Short Sale unit providing additional support to increase your chances of a successful transaction.


Kathy Cox - Short Sale Specialist

402.639.5524 | kathy.cox@cbshome.com

Having lived her entire life in the Omaha and Papillion, Kathy Cox certainly knows the area. She’s lived on acreages and private lake communities to everywhere in between. North, south, east and west, she can bring her personal experience to the table to assist you.

She specializes in assisting distressed homeowners and has three certifications/designations in this field.

  • Certified Distressed Property Expert (CDPE)
  • Short Sale & Foreclosure Resource (SFR)
  • Certified Short Sale Professional (CSSP)


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