WHAT IS A SHORT SALE?
* A Short Sale simply put is when a lender allows a Seller to sell their property for below what they owe on their loan. Let's say you owe $300,000.00 to Countrywide Home Loans. Your home is worth $260,000.00 due to the lower turn in the market. This Short Sale process can also help you avoid Foreclosure if you are starting to fall behind on your payments. You can also do a Short Sale if you are current on your payments as well. During market price reductions, you do have a right to sell your home at a lower price than what you owe. Please understand that there is no guarantee that a Short Sale will stop the bank from foreclosure. It is another tool to help you out of a bad situation if you can find a buyer and if the bank helps out during the process. Please read on for additional information!
*How does this process work for me- The Seller?
1) You need a REALTOR® ® that has knowledge and experience on how to set up, and operate a Short Sale. This means contacting your lender directly, putting together a "Short Sale Packet" for the lender to approve your Short Sale, creating the ideal marketing situation for your property, getting everything ready prior to bank approval. This also means that I am there for you EVERY STEP OF THE WAY! I do not want to make things worse for you as the seller. It is my job to get you out of a negative situation. Please call me for more information or a FREE personal meeting to discuss your situation. Do not let Foreclosure ruin your life and your credit! I can help you in most cases!
2) Some
Short Sales can have adverse affects on your credit if you do not structure
the deal correctly. Sometimes you can get a 1099 from the lender for the
difference in price accepted by the bank. Most of the time, I try to settle
your case as a "Settled Account" so that this does not happen. You should
also contact your Tax Representative or CPA for additional tax information.
12-20-2007: Congress and The President of The United States have passed and signed into law: The Mortgage Forgiveness Debt Relief Act of 2007! Click below to see the law and what it means for short sales and foreclosures:
http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html
3) Short sales can work if you are current on your payments or if you are behind. Please keep in mind that when a NOTICE OF DEFAULT has been filed and you receive a copy of that notice, TIME IS NOT ON YOUR SIDE!!! In this market, even a Short Sale can take a very long time. This depends on the approval time from your lender and also how marketable your home is to a new buyer. This means the current condition and market value price.
4) Please keep in mind that this page is only a basic understanding of a Short Sale and the process. Contact me anytime for additional information so that I can assist you in any way!
*How does this process work for me- The Buyer?
1) As a Buyers Representative, it is my job during a Short Sale to assist you in getting a great deal usually below value and getting the most out of the lender such as having them pay your closing costs and or other related expenses.
2) A Short Sale sometimes can get you a great deal or just an OK deal! It is my job to find you a deal and make you happy with your purchase! This is due to doing research on properties and the surrounding areas. This type of transaction can last weeks or several months and you should be able to handle the length of the transaction. Remember, we are dealing with Banks after all!
3) If you can hold onto a Short Sale home for at least 2 years, you may be able to have plenty of equity to sell at a later time. Remember, we are NOT IN A "FLIPING MARKET!" Do not look to make fast money out there, this will set you up for disaster! Planning is everything!
***Please contact me if you have further questions or a scenario you wish to discuss with me. You as the Seller and as the Buyer do not pay me anything for a Short Sale! The bank pays me when I sell your home!
*Some terms and conditions apply. The bank/Lender(s) make the final decision during this process.
*A Short Sale may not work if a Notice of Default has already been filed! Please contact me for all details!