Frequently Asked Questions

Frequently Asked Questions

General

Q: Why would my lender agree to a short sale?
A: A short sale with JK means cash to the lender. Unless securitization or other agreements provide for more enriched payments, a short sale is a much better option for the lender than a foreclosure which creates expense and liability.

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. If you are considering a short sale, working with a company that has experience in the industry can mean the difference between success and failure. When you work with JK, you have the best chance of success.

Q: When should I start working on a short sale?
A: You don't have to be behind on your mortgage to start the process. If you are looking for a strategic alternative to eliminate the negative equity in your home, JK can start helping you today.

Q: I'm facing foreclosure. What are my options?
A: It depends on your particular circumstance. Options may include loan modification, a deed in lieu of foreclosure, foreclosure, or taking legal action against your lender.

Q: Some people tell me to just walk away. Why shouldn't I?
A: In very few instances it may be better to walk away, but you should never do it without understanding the consequences. 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 should be used as part of a strategy to eliminate your debt and protect your assets or as a solution of last resort because it has the worst 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. JK provides a free consultation to make sure your situation is individually considered at the outset of the process.

JK's Process

Q: How do I get started?
A: Getting started is easy. Call 1-877-506-5190 or complete this short form and an experienced JK coordinator will call you.

Q: How much does a short sale cost me?
A: There is never any cost to the homeowner for a JK Short Sale.

Q: Can I work with JK if I live in a different state?
A: JK currently works with homeowners in California, Arizona, Nevada, Utah, and Oregon. We are constantly adding new states. If you live in a different state, please check back soon or call us at 1-877-506-5190.

Q: Can JK stop a foreclosure?
A: Usually, yes, but your chances are better if you start sooner. Don't wait. Call us today. 1-877-506-5190.

Q: How can I be sure JK can work with my lender?
A: JK has successfully worked with hundreds of lenders and our process will work with every lender.

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 90 to 120 days.

Q: What if my situation changes after I start the process?
A: You can cancel the transaction at any time.

Q: What if my real estate agent wants to handle my short sale?
A: JK can work with any licensed real estate agent. Our primary concern is making sure you are well represented. If you are uncertain about the individual’s expertise to handle the sale of your property, we suggest sticking with our trained professionals. However, if you know a qualified real estate agent skilled in short sales, we will be glad to work with them.

Short Sale Implications

Q: How will a short sale impact my credit?
A: A short sale will usually show on your credit report as a partial settlement. According to current Fannie Mae guidelines you will be eligible to borrow for a new home in no more than two years after the short sale. Learn More

Q: Will I lose my house?
A: Yes. In a short sale, the bank agrees to settle your debt for less than you owe. The settlement comes from selling your home. You can; however, remain in the home until the short sale is closed. You will stay 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 usually helps reduce any tax consequence you may have; however, there are many factors to consider. When you work with JK, we will discuss the tax implications of a short sale and possible relief available under the Mortgage Debt Relief Act. If you have questions about how this affects your particular situation, we can refer you to tax advisers to get all of your questions answered.

Q: Will I be responsible for any remaining mortgage balance due?
A: It depends on the policy of your lender at the time the short sale is approved. During your initial consultation we will discuss your lender’s history of waiving any deficiency obligation so you have an idea what to expect ahead of time. We will also review the laws in your state that affect collection of a deficiency in the event of foreclosure. JK will review the state specific requirements generally and refer you to a legal advisor for specific advice should you so choose.

Q: When can I buy a house again if I have a short sale on my credit?
A: According to current Fannie Mae guidelines, typically within two years (learn more). If you go into the short sale with good credit and you have legal claims against your lender, we can refer you to an attorney who will fight to protect your credit and minimize the negative impact of a short sale. Regardless, you stay in control until the outcome is certain.

Q: Will I make any money from a short sale?
A: Under HAFA (learn more), you may be eligible to receive $3,000 in relocation assistance. If your loan does not qualify for HAFA, the lender will typically not allow the homeowner to profit.

Facing Foreclosure?

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Why JK Short Sale

Get to know us and learn why we set the standard for short sale transactions.
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Talk to an Expert

Make an informed decision by getting all your questions answered. Call our experienced coordinators today.
1-877-506-5190

Understand the Details

Learn how short sales can impact your taxes, credit and mortgage deficiency.
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