It is understandable to have questions when coping with a new and challenging situation, especially when a home is at stake. The reality is that millions of homeowners across the country are finding out that they have more questions than answers. We hope that the following information will help you better understand the circumstances. If you have further questions not addressed here, or would like additional information resources, feel free to Contact Me.
Q. What is a short sale?
A. A short sale is a program that allows the homeowner to sell the home for less than the amount owed on the mortgage.
Q. How can I be considered for a short sale?
A. You may be eligible for a short sale if you have an involuntary hardship and can no longer afford the monthly payments on your mortgage, or you’re unable to sell your home for the full amount owed on your mortgage.
Q. How can I benefit from a short sale?
A. You avoid a foreclosure sale. You can live in your home until the new owner closes, giving you time to make other living arrangements. A foreclosure sale may be postponed once a written, signed offer is received and approved in writing. Also, you might be eligible for a seller incentive, like relocation assistance credit.
Q. How do I start a short sale?
A. Once you call me to discuss a short sale, your next steps would be:
- Explain your situation and why you are unable to pay your mortgage.
- Set up a free consultation to review your information and determine if a short sale is an appropriate option for you.
- If it is, then we’ll work closely with you and the bank, and together we’ll work through the details and steps to sell your home at an agreed-upon price so you can avoid foreclosure.
Q. Will the bank allow me to sell short?
A. The banks would prefer that you short sale versus foreclose. To that extent, and with the current legislations in place, a short sale may provide you the following:
- No deficiency judgment.
- No tax ramifications.
- Cooperation from the banks for future home loan possibilities.
Q. What other details should I be aware of?
A. Here are a few:
- You can gather information to determine whether a short sale is a viable fall-back option for you while you are still in the loan modification process, without disrupting it.
- A short sale transaction can take place as late as 10 days prior to a foreclosure sale on a home in some circumstances.
- Mortgages in bankruptcy require special consideration, so call us as well as your attorney to discuss your options.
- Short sale offers are subject to Mortgage Insurance (MI) and/or investor requirements and approval (if applicable).
- Be sure to speak with your tax adviser about any potential tax implications of a short sale.
If you are considering a short sale then please follow this link for information on what to do next.
