Don’t be frustrated. If you read Real Estate Short Sale 101 then this page will help answer some basic questions that would normally come up when taking the real estate short sale path. Remember, when in doubt, always consult a professional.
Unlike Foreclosures and bankruptcies, a Real Estate Short Sale is the least painful to your credit rating when dealing with your real estate short sale. With continued pressure on the value of real estate, debt obligations and high unemployment is it any wonder that we look almost everywhere and have tried almost everything to relieve this burden? We believe your search for a REAL solution will end here today.
What is a Real Estate Short Sale?
As mentioned in RE 101 area of this website a real estate short sale is when you place your property on the market for sale at a price that is less than the current loan value. The short sale price will typically include brokerage fees and all other expenses. Effectively, the bank accepts a lower payoff amount then what you owe them to satisfy your debt obligation to the lender.
The fact of the matter is that banks are, in ever greater numbers, willing to come to the table and give homeowners a break when faced with financial hardship. In most cases lenders are willing to settle with you simply because the foreclosure process is a lose/lose for both parties. Everyone can walk away from a real estate short sale without losing their collective shirts. In the end the goal for both you and your lender is to limit your exposure to loss. A successful real estate short sale accomplishes this for both parties.
The advantages are numerous and wide ranging when compared to foreclosure, bankruptcy, etc… For both you and the lender. Here is a list in no particular order as they are all of importance.
No Problem. Many people took out improvement loans and a host of other types of second and third mortgages. It is more common than not and therefore nothing to stop the process but rather another element in the process.
Again, not a problem. The same rules apply. Almost any type of property can be sold through the short sale process. Here the question is geared more toward tax liability and and helping you understand the Mortgage Debt Forgiveness Act that was enacted in December of 2007.
Depending on your market they can take between 90 and 120 days sometimes much less. The interesting thing about real estate short sales is that there are so many improperly priced and marketed that you would think it impossible to sell but that is absolutely not the case. Normal market rules apply. We are experts in this.
For the vast majority of cases, we can negotiate things so that the lender does not seek a deficiency judgement. Regardless, it should be noted that every state has it’s own laws on the books for these matters and as mentioned above, you should always consult with a legal professional.
In the majority of scenarios the seller is not held liable as a result of receiving mortgage relief (selling for less than mortgage value) when the property in question is their primary residence. There may be circumstances where the seller might have some tax consequences if it is an investment property. Here the question becomes reviewing your net worth and helping you understand the rules surrounding the Mortgage Debt Forgiveness Act of 2007. Also there are two IRS publications (4681 and form 982) that give clear instructions on this issue. We firmly believe most persons can be helped through understanding your position relative to these rules and structuring yourself properly to legally capitalize on this moment in time. We cannot stress enough to consult a tax professional on this subject.
Real estate short sales are definitely less damaging than a foreclosure and bankruptcy. By any means you should avoid these. Avoiding bankruptcy and foreclosure will help you to get back to normal credit terms for borrowing, car loans, credit cards, etc., in relatively quick manner. As noted above you can even get the ability to own a home again in a much shorter time than if you go the bankruptcy or foreclosure route.
In simple terms any legitimate situation or circumstance that directly limits your ability to repay your lender. Here are some examples of things that have been considered justification in prior cases.
Give us a call! We have excellent working relationships with the investing and banking communities and there may still be time to get your lender to reconsider. In many cases we can assist you in obtaining a STAY or stopping the process by showing a better method that saves the bank money.
We are a trained and specialized real estate brokerage that understands the real estate short sale process in a way that most firms simply do not. We have an assortment of foreclosure avoidance and property sale solutions available to make certain we can help distressed property owners out of their situation. We are Nationally Certified Distressed Property Experts (CDPE). We are intimate with the current Mortgage Debt Relief Act and IRS rules as it applies to short sales. We work with top attorneys in our market. There is no secret to what we do. We work hand in hand with you and your lender(s) to get the most equitable solution for all parties. We understand the ever changing faces of the bank servicing agents and are tenacious in this regard. We work harder for you and do more.
When you get right down to it, we believe (when looking at the BIG picture) this is just a bump in the road. Our goal is to build a lasting relationship with you by helping you avoid foreclosure, protecting your credit and maintaining your dignity through a trying time with discrete, intelligent assistance.
Give us call and we can discuss your situation to see how we can be of immediate assistance to you.
We look forward to helping you!
