Short Sales
What Is A Short Sale?
A "Short Sale" is the sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amount and the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.
This could be a solution for homeowners who need to sell and owe more on their homes than they are worth. There is however, criteria that the homeowner must meet.
1. Financial Hardship-Circumstances that is causing you to be unable to afford your mortgage.
2. Reduction in salary-You have more monthly bills than you have income. Your lender will need proof that you cannot afford your mortgage or will soon be delinquent.
A "Short Sale" can be an alternative to foreclosure because it mitigates the additional fees and costs to the creditor and the borrower. A short sale and a foreclosure can result in a negative credit report for the homeowner. Unless specifically agreed to by both the lender and the borrower any unpaid balance, known as a deficiency, would still be owed by the borrower.
If you are considering a real estate short sale of your home, be aware that you may receive a form 1099-C for the amount of the lender's losses. This is considered loan forgiveness to the IRS and you may end up being responsible to pay ordinary taxes on the amount of the 1099-C
If you have questions or believe that you may qualify for a short sale, feel free to call or email me for a free consultation.
I have a 100% success rate on my short sales and have a good working relationship with multiple banks and lenders.
