In today's Real Estate market,
Short Sales have become almost common place...
but most sellers are not sure what a Short Sale actually is
or how it could affect them
A short sale is when the property owner owes more on their mortgage (or mortgages)
than what the property is worth in the current market.
The lender who holds the mortgage had to agree to allow the property to be sold
for less than is owed on the mortgage.
As a seller, what do you need to know
if you are considering trying to sell your home as a short sale?
- Avoid Foreclosure - A short sale is a great way to avoid foreclosure. Today more and more homeowners are facing foreclosure...you are not alone.
- Patience - A short sale, regardless of the name, is not a quick process. A lien holder could take months to approve or deny a short sale after you receive an offer. Most lien holders will not even consider a short sale until you have an offer to send them. If you are not willing to wait...a short sale is not right for you.
- Experience - Choosing a Real Estate Agent who is experienced in short sales is key to a successful short sale. The agent you choose to represent you should know what is needed for a short sale and also how to communicate with the lender. Let your agent do the work.
- Hardship - In order to qualify for a short sale, you must show a financial hardship (such as a job loss, income reduction, divorce, illness etc..). Most lenders require a hardship letter that explains your situation as well as copies of your tax returns, bank statements and pay stubs as well as additional documentation in order to make a decision on a short sale.
- Credit Score - A short sale can, and probably will, affect your credit score. How much it will affect your score depends on how the lien holder reports to the credit bureaus. It is usually less of an impact to your credit than a foreclosure.
- Promissory Note - The lien holder could ask you, as the seller, to sign a promissory note for the deficiency between the sale price and what you owe on your mortgage if you have liquid assets.
- Tax Implications - You, as a seller could be responsible for paying taxes on the amount of debt that is forgiven, however under the Mortgage Forgiveness Debt Relief Act of 2007, the debt forgiven on our primary residence may be excluded.
Even though it may sound scary, a short sale is still a good option for many homeowners
who can't keep up with their mortgage payments and can't sell their home for enough money to cover their current mortgage. Is a short sale right for you?
If you have questions about whether a short sale is right for you, please call us at (207)784-3800 or e-mail us by clicking below
http://www.brendafontaine.com/buyer-short-sales.asp
SHORT SALES - WHAT YOU SHOULD KNOW AS A SELLER
Reviewed by Merlyn Rosell
Published :
Rating : 4.5
Published :
Rating : 4.5
