Jun 20, 2011 | Real Estate, Short Sales
In a declining market, short sales are common when homeowners owe more on their mortgage than their property is worth. Because of this deficit, owners suffering financial hardships cannot sell to avoid foreclosure. A short sale, also referred to as pre-foreclosure sales, are becoming an increasing part of the real estate market. In a short sale, the mortgage lender agrees to accept less than the mortgage balance due to an economic or financial hardship of the mortgagor. A short sale typically occurs to prevent a home foreclosure which also costs the mortgage lender a substantial amount of money. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
A short sale does adversely affect a person’s credit report, though the negative impact is typically less than a foreclosure. Normally when a lender decides to forgive all or a portion of a borrower’s debt and accept less, the forgiven amount is considered as income for the borrower and is liable to be taxed. There is also no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. Anyone considering short sales should consult a real estate lawyer and a tax accountant to discuss any ramifications.
The short sale process typically begins by listing your home for sale for less than the balance on the mortgage with the condition that the lender must approve all offers. Once you receive an offer on the property, the negotiations with the lender begin to try and resale the home to the new buyers. If you or someone you know needs a consultation on their options for selling their home whether distressed or not, please feel free to call me. I have been trained for short sales and have the Short Sale and Foreclosure specialist designation.
This is intended to provide basic information. Please consult your real estate, legal and tax professionals for specific questions based on your circumstances.
Apr 13, 2011 | Foreclosures, Sellers, Short Sales
Sometimes selling your home may not be the only (or the best) option for you depending on your long and short-term real estate goals. When you have a knowledgeable, experienced real estate consultant we can help show you all the options that are available to you and how they could benefit you.
Options May Include:
Selling Your Property. Sometimes you just need to sell your property, and unfortunately that may not happen the first time you list it for sale. Let’s visit about why it may not have sold, make necessary corrections and get it back on the market with a customized marketing plan to get it sold.
Short Selling Your Property. If you are having trouble making the mortgage payments, facing foreclosure, owe more than you can sell your home for or must relocate immediately whether your home sells or not then you may be a candidate for a short sale, also referred to as pre-foreclosure sale. Your lender does not really want to own your home, that’s not their goal, so they may agree to accept less than what is currently owed on the note to not have to incur expensive foreclosure costs. Currently in the financing world lenders look at short sales more favorably on your credit report than a foreclosure and say you may be able to reapply for another mortage in as little as two years as opposed to the seven usually required for a foreclosure. I am a certified Short Sale and Foreclosure specialist with the coveted SFR designation meaning I have had the most up-to-date training available currently for the real estate industry in this new and specialized area. Even if the foreclosure is looming close – it still may not be too late!
Leasing Your Property. Maybe your neighborhood has experienced a recent decline in property values so now is not the best time for you to sell. The leasing market is very hot right now and may allow you to “cover” your mortgage and wait for a better time to sell in the future. Or maybe the investment option of gaining equity in a property without making the payment yourself is appealing to you. Our team can help with our leasing and/or property management services.
These are some of the most common options used by sellers to achieve their real estate goals, but it is not all of them. Call me to schedule an appointment to discuss your specific situation and goals and let’s see what we can do. How will you know if we can help, unless you call?
