Short Sale Process
A short video explaining the basics of the short sale process:
What is a Short Sale?
Answer: A short sale or “short pay” is a type of real estate sale where the lender allows a property owner to sell a property for less than what is owed on the mortgage balance, and it is one of the best options for people who are trying to figure out how to stop foreclosure of a home. The proceeds of the sale go to the lender, and in return, the seller is able to avoid foreclosure.
How Do I Know If a Short Sale is Right for Me?
Answer: In most situations, people have 3 options available to them. 1.) Keep the property. This means making the mortgage payments every month & making up any past due payments. 2.) Short sell. 3.) Foreclose (we NEVER recommend a foreclosure).
Can I Be Paid for a Short Sale?
Answer: YES. Bank of America, Chase & other lenders are paying significant incentives to homeowners for short selling qualifying properties.
How Much is This Going to Cost Me?
Answer: Unlike some companies, we charge absolutely nothing to the homeowner. In fact, MakingHomeAffordable.gov states that soliciting money for short sale negotiation & consultation services is one of the most common types of home relief scam. As a reputable company, we will never ask you for money at any point in the short sale process.
How Does a Short Sale Affect My Credit? How Long Does a Short Sale Last on My Credit?
Answer: A short sale will affect the credit for about 24 months. By Fannie Mae guidelines, one should be able to obtain another mortgage loan 24 months after a short sale is completed. Through a short sale, a foreclosure is not recorded or even mentioned on the credit report. In regards to privacy, when someone foreclosures, a public notice is filed & a public auction is held. However, our short sale process ensures that the seller will maintain their privacy.
What About Tax Consequences of a Short Sale?
Answer: In 2007, the IRS Passed “The Debt Relief Forgiveness Act” & “Debt Cancellation”. This allows homeowners to short sell their owner occupied properties with a deficient amount of up to 1 million dollars for singles & 2 million dollars for married couples with no tax consequences on the deficient amount. This law is set to expire, so be sure to consult your tax professional for more information on tax consequences for short sales. You can also visit the IRS website at www.irs.gov.