A Short Sale happens when a homeowner owes more to his/her mortgage provider than what a house is worth and you’ve run into a problem (a hardship) in paying the mortgage. Oftentimes a lending institutioni will work with the seller in selling their home and accept the market price for the home even though the market price could be far less than what is owed.
The seller then can walk away from the property and know that they have minimized the negative credit implications (rather than just foreclosing) . A short sale can be a win-win situation in that the seller can get out from an impossible situation – and – the bank can remove this property from their list of pre foreclosures. If a home goes into foreclosure it’s a costly event for the bank and a significant negative hit on the sellers credit.
SO How do start the process of a short sale? Call me and we can discuss next steps. Let me help you put your life back on track.
Also in 2012, please be aware that the the Mortgage Debt Relief Act of 2007 expires in 2012. What it means to the homeowner, selling a home as a short sale is that if you close after 12/31/12, you will be responsible for paying Federal income taxes on the amount the bank forgave on your mortgage. If you believe you may need to do a short sale, you should be talking to me now. Don’t wait until later in the year, it may be too late!