Short Sales

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Happy Families walking away from foreclosures to short sales in Lathrup Village, Southfield, Beverly Hills, Birmingham and other cites in Michigan










A short sale is when a person sells their home for less than they owe on their home mortgage; usually to avoid home foreclosure.  This does not necessarily mean that you are behind in payments or at present losing your home.



Because of a hardship of some sort, many people short sale their homes to avoid foreclosure and save their credit.  (Foreclosure, by the way, will severely damage your credit). Some examples of  common short sale  hardships are: loss of income, increase in housing expenses (ARM mortgage, tax increase, etc.), death, long-term or permanent disability, serious illness, divorce, health expenses, loss of job, disaster (natural or man-made) and many more. Do you have a hardship? Fill out our short “Calhoun Team Seller Form” or call today!


A Short-Sale could affect your credit score. The average is 50 or less points & in some cases a 2-year  ”penalty” period, compared to foreclosure at 100 – 300 points +  a 7-year “penalty” period!


There are two things you must know:

  1. First and foremost you will greatly benefit from hiring a real estate agent who has experience with short sales and has success with negotiations. We at Calhoun Team Realty will be happy to assist you. Call today: 248-905-1402 or go to the Real Estate Destiny page and select Sell My Home for more details.
  2. Lastly, choose what type of short sale you are trying to do? You can use one of the following:


HAFA (Home Affordable Foreclosure Alternatives) is a federally funded program. It is intended for those who can’t afford their mortgage and would like to make a transition to a more affordable home. Often, Calhoun Team Realty clients receive relocation cash at closing. Relocation cash can range from $3,000 – $30,000!  


Even if your home goes to sheriff sale, here in Michigan you don’t have to move out immediately. You will have 6 -12 months to short sale or redeem your home out of foreclosure!

  Traditional Hardship Short Sale in Michigan

A traditional short sale is similar to a HAFA short sale in that it is intended for those who can’t afford their mortgage. There is less paperwork and often it takes less time than a HAFA short sale.  HAFA takes on average, 3 months – 1 year to complete. Traditional short sales take on average 3 – 6 months. With traditional short sales, you may not need a hardship letter or hardship documents to be examined by the lender. Often, Calhoun Team Realty clients receive relocation cash from lenders at closing. Relocation cash for traditional short sales also range from $3,000 – $30,000!

 Relocation cash from $3,000 – $30,000!

It pays to work with The Calhoun Team Realty!

 Experienced short sale REALTORS!


A foreclosure can be postponed (or put off) indefinitely in many cases, if the owner contacts us early enough.

 Strategic Short Sale in Michigan

In this situation, the owner can continue to make payments on the loan(s) and are often up to date on their payments. The homeowner has made a decision to give up negative or nonperforming real estate. This short sale will get the property “off their books” and lower their load of debt. In this case, the lender usually requires the owner to bring cash to closing. Example: An owner owes $350,000 & is current on payments. The home is now worth only $200,000. The lender accepts the short sale with the owner bringing $10,000 to closing. So, for $10,000 the owner has lowered their debt by $150,000.



From start to finish, a short sale can take several months. It is in your best interest to hire a Michigan short sale expert who will be patient & reliable throughout the whole process. That is what we at Calhoun Team Realty will do for you! Be assured that we will give you the best service we can offer. Our goal is not only to save you from the devastating effects of a foreclosure, but to communicate with you & provide supportive guidance throughout this process! Get your short sale started today!

  1. First, submit the requested info on Sell My Home page. Then we will complete a short sale package from your lender. We will then list & market your home producing multiple offers. (In most cases, in a week or less.) We then submit the Complete Short Sale Offer to the lender or the bank.
  2. Next the file will be processed and a dedicated agent will negotiate the terms of the short sale. The title work will be ordered. If there are any missing documents and/or information, you will be contacted.
  3. The title work & HUD 1 statement is completed & submitted to the lender for “Short Sale Approval”.  Then the lender(s) look over or review the documents and appraise the property. In most cases, there will be updates and/or price changes.  Any problems affecting the short sale will be addressed & negotiated if necessary.
  4. The lender generates an “Approval Letter” or “Settlement Agreement” that is sent to you for review. Once you’re satisfied with the short sale terms, the signed documents will be sent to the lender & Title Company and other parties to the short sale. A closing (or sale date) will be scheduled. The short sale is closed and this chapter of your life is completed!


The Calhoun Team currently has over 90% “SHORT SALE success rate” vs. a 30% industry success rate!

 How Does Mortgage Insurance Affect My Short Sale?

The Mortgage Insurance is just an extra layer that’s added to the process of some short sales. The mortgage insurance company (aka the “investor”) can accept or decline the short sale.


The full name of a short sale is: “short sale in-lieu of foreclosure”.



Remember the homeowner must owe more on the mortgage than the current value of the home.    Every situation is different, but here is a recap of the basic requirements for a short sale:

  1. You HAVE to sell your home
  2. You owe more on the mortgage than the current value
  3. There is a hardship that will end with the property in foreclosure such as:
  • Unemployment
  • Relocation
  • Illness of borrower or co-borrower
  • Loss of income
  • Divorce
  • Death of a co-borrower that qualified the loan
  • Neglect the local market property value (cannot sell a home)
  • Military Duty
  • Payment Increase on Adjustable Rate Mortgage
  • Medical bills
  • Medical condition of spouse or co-borrower
  • Family emergency
  • Damage to property (natural or unnatural)
  • Many more…

How Do I Buy A Short Sale?

Since we covered the pros and cons of short sales and you’re still interested in investing in short sales, here’s some important steps to consider before you start:

Hire an Experienced Real Estate Agent in Short Sales

First and foremost you need to find an experienced real estate agent. This can be a difficult task, you can ask friends, neighbors, and family on whom they prefer. OR you can save the time and effort by contacting the Calhoun Team Realty (248-905-1402) and we will definitely help you with the process.

Finance! Finance! Finance!

Now that you have your agent(s), so what do you do now? Now you need to get your agent(s) to search for a short sale property that’s best for your standards. While their doing that, you need to focus on getting the right amount for a loan. It is recommended to talk to multiple lenders to see who has the highest terms and rates. Remember the process of a short sale is slow, but if your offer is approved by the seller’s lender then the process will tend to go quicker.

Pay Attention to the Market Value

A property’s value on the MLS as listed as a short sale doesn’t always mean that’s how much it’s actually worth. You need to talk to your agent(s) to gather a Comparative Market Analysis (CMA) to see its true market value.

Protect Yourself

Make sure your agent(s) talks about an offer that will let you out of the situation due to any certain circumstances. Consider finding another property or an inspection on the property that maybe needed with other repairs. (Note that lenders don’t like to negotiate the value of the property because of the problems contained in it). Make sure it is necessary for you to be eligible to walk away from the arrangement when it comes to severe conflicts with the property.

Continue Searching!

Continue your search because the lender isn’t going to make any promises that they will accept your offer or will close the deal successfully. You may find another property that you like, and less difficult to buy. Your chances on walking away from the short sale will increase. Keep this in mind as well; don’t ever believe the media’s propaganda. Sit down and do your research, so you can get the full benefit from the short sale.


Are you a person that owns a home that is worth less than you owe on your home mortgage?

 Would you like to avoid home foreclosure?

Are you current on your payments?

Is it time you got started on YOUR SHORT SALE?


  Email an agent Today!

Have any questions or concerns? Please, don’t hesitate and give us a call (248) 905-1402

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