Information About Short Sales

April 5, 2011

General Short Sale Info

If you are unsure about what a short sale is I will help you understand. In a short sale you are selling your house for less than its current market value. You will not make any money from selling your home.

In this process your lender will forgive a portion of your debt. You may have to pay taxes on this forgiven debt so please keep that in mind. In order to sell your home in a short sale your lender will have to agree to allow you sell. Your lender does not have to agree but they are more likely to honor your request if you meet certain criteria.

Have you lost your job and are unable to find new work? Have you gotten a divorce? Has there been a major death in the family? Is your home worth significantly less than what you paid? Your lender will require proof from you if you make any of these claims. It is your responsibility to do all of the footwork and present a compelling case to your lender in order for them to approve.

The good news is that in the current housing market most lenders are willing to work with you on a short sale instead of going into foreclosure. A short sale is only slightly better than a foreclosure on your credit report and lenders will be able to tell you sold your home in a short sale. Also, remember that there is nothing short about a short sale. The process can take a long time to complete bringing stress and frustration to your already troubled housing problems.

It’s a good idea to hire a realtor who works with short sales on a regular basis to help guide you as smooth as possible through the entire process. This can make a huge difference in the amount of time it can take to complete. The lender may require you to spend less on your realtor since you are asking them to take a loss on the house.

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