Short Sales
Short Sales
Why would you consider a short sale?
1. If you owe more money on your home then it is worth.
2. If you are behind on your mortgage payments.
3. If you have suffered a loss of income and can't afford to make your payments.
4. If you have been unsuccessful at obtaining a loan modification.
5. If you would like to avoid foreclosure and are interested in mitigating the damage to your credit.
What is a short sale?
A short sale is when you sell your house for less then what is owed. As your REALTOR®, I would negotiate on your behalf with your bank to facilitate the sale at no cost to you. The bank will pay the commission!
Qualifying for a short sale
You must show the bank that you have a hardship. Divorce, job loss, job transfer, illness, or you simply cannot afford to make your payments are some examples of acceptable hardships.
Benefits of a short sale
According to Fannie Mae's new policies you should be able to qualify to purchase a new home after two years of the completion of a short sale. With a foreclosure on your credit it would take seven years!
The Mortgage Forgiveness Debt Relief Act and Debt Forgiveness
For some information on the tax considerations of a short sale please refer to the link below:
http://www.irs.gov/individuals/article/0,,id=179414,00.html
