My New Blog

IS A SHORT SALE RIGHT FOR ME?

Your loan is larger than the value of your house.

It does not make financial sense to keep the house.

You are struggling to make your mortgage payments.

Your interest rate or payments have increased or continue to increase making it a financial hardship.

You need to relocate and are unable to maintain and pay for two properties.

HOW MUCH IS THIS GOING TO COST ME?

Unlike some companies, we charge absolutely no commission to the homeowner. The lender pays our commission and my team is only paid when we successfully complete your short sale process.

YOUR CREDIT SCORE.

A foreclosure is one of the most damaging items shown on your credit report. It negatively affects your credit score and it may prevent you from obtaining any type of financing for 7-10 years.

A short sale will affect your credit score for approximately 24 -36 months (By Fannie Mae Guidelines), but not as negatively as a foreclosure. You could obtain a home mortgage in as little as two years following a short sale.

WHAT ARE THE TAX CONSEQUENCES?

If you are considering a short sale of your house, you should be aware that you may receive a 1099-C form for the amount of the lender's losses. It is critical you consult your tax professional, attorney and/or a financial advisor for possible tax implications.

WHAT IF I AM CURRENT WITH MY PAYMENTS?

The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent.

I ALREADY RECEIVED A FORECLOSURE NOTICE.

A short sale can still be completed after you have received a foreclosure notice. Contact your Realtor concerning the amount of time you have to complete the short sale process.

WHY WOULD A LENDER AGREE TO SHORT SALE AND TAKE A LOSS?

Lenders save thousands of dollars on a short sale vs. a foreclosure. They also save untold amounts of time waiting for a foreclosure process. Plus, they do not have to spend money maintaining a house until it sells.

WHEN DO I HAVE TO MOVE?

Most lenders require you remain in the house and continue to maintain it with all the utilities connected until the short sale is closed.

The average short sale takes approximately three to six months to complete. Even if someone makes an offer on the house immediately upon listing, it is often preferred for you to stay in the home until the transaction closes or the bank tells you to move.

In the event a sheriff’s sale has occurred, the redemption period is often noted on “The Notice of Sheriff Sale.”