SHORT SALES-
THE INFORMATION YOU MUST KNOW!
WHAT IS A SHORT SALE?
The sale of a house in which the seller owes more then what the total payoff to the lender of record is. This is usually caused by mortgage obilgations and closing cost, such as property taxes, transfer taxes, and Realtor commisions that are more than the Seller is willing or able to cover. Home owners that purchased at the top of the market or who took out large amounts of equity with a refinance or who need to sell because of divorce, job transfer,or any other reason may also find themselves upside down, owing more than the home is currently worth when closing cost are factored in. Unfortunately, this is where a lot of home owners find themselves today.
HOW DO I BENEFIT FROM A SHORT SALE?
A short sale helps to relieve the stress of being in foreclosure. You can get rid of your big mortgage payment and move on with your life while ending the harassment from your lender. The Homeowners that we have helped are tremendously thankful to be relieved of the burden the foreclosure has caused.
A short sale also prevents additional damage to your credit. Some late payments have already done some damage to your credit, however a foreclosure will do far more damage and lower your credit score. We can help you regardless if you have equity or not.
WHY WOULD A LENDER ACCEPT A SHORT SALE?
Lender's are in an economic crunch, as we have seen often in the local and national news. Their choice is to either accept a short sale and write off the loss on their taxes or they can foreclose. With the amount of foreclosures today, Lenders are more in line to accept a viable short sale offer. With foreclosing, the lender will incur cost for processing the foreclosure as well as maintaining the property until it is able to return it to the market. During which time vandalism and liability grow.
HOW DO I KNOW IF MY HOME IS SHORT? Contact us today, for your no obilgation FREE cost market analysis.
A CMA will be your first indicator. Calculate this with your outstanding debt and the cost associated with the sale of your property. This will give you an estimate of the net proceeds that will be realized. This information will then be calculated into a Hud-1 settlement statement, this will give you any results that you will have at the end of closing. You should know that if you do ultimately conduct a short sale, the cost of Realtor services are paid by the lender accepting the short sale. That is why it is best to secure Realtor Services instead of wasting valuable time trying to sell on your own.
Note: The Lender is not a principal in the transaction. The Agent represents the Seller, not the Lender. We work for you! Its our job to get you the best price that the market can bare. In a Short Sale, the offer is negotiabted with the seller, just as in a traditional sale. The offer is then submitted to the lender, not for an acceptance but for an approval of the terms and the net proceeds.
WHO DO I NEED TO TALK TO ABOUT THE PROBLEM?
Contact and communicate with your bank as soon as you know there is going to be a problem making your mortgage payments. If you are not comfortable with this, make sure to find out what your options are. Contact us today, We Are The Home Savers will make you aware of the options. We can only help you navigate the process if contact us, ASAP. Quick Action can mean the difference between keeping and losing your home.
WHAT ARE MY OPTIONS?
1. Keep the property.
2. Sell the property and bring cash to close of escrow.
3. Attempt a work out with the Lender. Loan Modification
4. Offer the Lender a Short Sale.
5. Offer the Lender a Deed in Lieu of Foreclosure.
6. Bankruptcy
7.Allow the Property to go into Foreclosure.
Contact us Today, to find out how each one of these options can work with your unique situation. Every option, may not be avaliable in every case.
HOW LONG DOES IT TAKE TO COMPLETE A SHORT SALE?
Although, response times vary from Lender to Lender, it could take two weeks or as long as 60 days or more to recieve an approval of a short sale from a Lender. Some properties with securitized loans, (which are the majority these days) may require a longer time to get an approval of a short sale because of possible need for approval from the entity holding the pool of securities.
WHAT FINANCIAL OR CREDIT LIABILITIES WILL I HAVE AS A RESULT OF A SHORT SALE?
For income tax purposes, the debt that was forgiven could be taxed as if it were income. So, if $30,000.00 of the debt was forgiven, the seller could have to pay the income taxes on that $30,000.00. This rule can and has changed for some sellers with the crisis we have in the financial markets.
Find Below A Link To The IRS describing the Debt Relief Act of 2007.