Frequently Asked Questions
A short-sale is a transaction that allows for the sale of a property for an amount that is less than the amount owed to the lender. The bank in return may accept the proceeds as full settlement of the debt. A lender prefers a short-sale over a foreclosure because it is faster, costs less and they don’t want to own a home they can’t sell. A short-sale is better for a homeowner because it negotiates a solution with the lender on favorable terms, protects your credit, helps to minimize debt obligations and allows for a fresh start.
A residential closing is the final step in the selling and buying process of a house. It’s where you officially receive the keys to your home, and under normal circumstances, the home is yours to use from that moment on.
A commercial closing is the final step in the selling and buying process of a place that will be used for business purposes. These types of closings are usually a bit more involved than a typical residential closing.
Refinancing is when you essentially restart your mortgage. If you have a 30 year loan and you’ve paid on it for 10 years, it will reset to 30 years once your refinance is final.
People refinance their mortgages to get a lower interest rate or to take cash out of their equity for big purchases.
These two types of closings are essentially the same. There may be more or less paperwork at one or the other, but operations are similar.
Down payment assistance is any program that assists with securing a down payment on a home. They can be grants or loans that must be repaid.
A reverse mortgage is available to homeowners who are 62 or older and have considerable equity in their home. They can use a reverse mortgage to take out a lump sum of money and use it as income or other things.
A home equity loan or line of credit is when you tap into the equity of your home to access cash for repairs, improvements, or other needs. You are essentially using your home as collateral.
A 1031 exchange is a way for investors to swap out one property for another and defer losses or gains until after the closing.