On average 7 out of 10 sellers in today’s real estate market is a Short sale. Short Sales are what home buyers are looking for if they have the time and patience to wait it out, If buyers think they will walk into the house and make a offer and close 3-4 weeks later you are going to be in for a big shock.
A Short Sale is when the seller owes more money on the house or property than its worth in today’s real estate market and the Lender or Bank is willing to accept a lower price for the house by way of Short Sale. The Lender or Bank agrees to sell the home for less than what the seller owes and the lender or bank will write off the difference at closing. The lender in Most cases will forgive the difference of the balance and the seller will not have to pay back the money. Now this does not mean the IRS cannot come after you and claim this as income later on but in most cases the IRS have not been doing this when its your Primary residence, ( Contact a Lawyer about this ).
- Homeowner must be going through a Hardship like.
- Lost of Income
- You Must Owe More Than Its Worth
- You must prove by financial records you cannot make the payments anymore
Now regardless if you think you as a seller should not bother trying to sell your home through the short sale process it is a much better solution that running away from the home and leaving the bank no choice but to slap a foreclosure on your credit report in the long run. By selling the house through the short sale process you eliminate a foreclosure on the credit report and it genrally help your credit rating quicker this way.
If you have questions about the Short Sale Process and you are thinking of selling a home in todays market please call me anytime, Our office handles 15-20 Short Sale Transactions every month and we have legal help for the whole process to make sure everyone is on the same page.
Common Questions About Short Sales?
Will I have to pay capital gain taxes if I sell my home as a Short Sale?
- NO. If your bank suggests that, they are ridiculous. Capital Gains would indicate that you are some way “better Off” financially because of money you have made. A Short Sale is the process of losing money, Selling Less For what is owed to the bank!!
How Long Will A Short Sale Take To Sell?
- This is a tough question? This depends on how quickly you find a buyer and How quickly the Bank or Lender responds to the Offer that is presented to them. I have witnessed Short Sales close in under 2 months and some taking over 6-7 months.
- The Short Sale Process is Getting Quicker ( 08-02-2009 ).
- Every Short Sale is different so there is no Promise in regards to a time frame.
Who Pays all the Closing Costs Like Commission, Title Insurance & Other Closing Cost?
- This is the best part about Short Sales, The Bank normally pays all the closing cost related to the sale of the property including in some cases money for Repairs that must be done after closing. This is also part of the negotiation process that must be agreed by all parties in order to complete the Final Approved Sales Price.
Do I Qualify To Sell My Home as a Short Sale?
- Yes, In Most Cases all Sellers will qualify to sell the property they own as a Short Sale.
Can I Stay in my Home During the Short Sale Process?
- Yes, you currently still own the house not the bank.
- This is the process of selling a house or property so that you can move.
- This is by no means a Program To Stop the Home from going into Foreclosure.
- A Short Sale is Better solution that just letting your home go into Foreclosure.
- Since it is generally easier to sell the home when its vacant you should make plans to move sooner than later.