Short Sales Information
Short Sale Introduction
Should you be considering selling your home, either Standard Active or Short Sale, I would be happy to meet with you to review any and all possible issues and processes, to the best of my ability. In a Short Sale procedure the property does not require a Real Estate sign in the yard nor a lock box. It assists us in the process, but is not required where many Sellers wish to maintain a low profile within the neighborhood.
Frequently asked Questions about Short Sales
What is the definition of a Short Sale?
A short-sale is when a home sale that is negotiated with the mortgage company, in which the lender takes less than the amount owed.
When should a Seller consider doing a Short Sale?
The Short Sale process should begin as soon as a Seller realizes that they are no longer going to be able to afford their mortgage payments. The sooner this process begins, the higher the likelihood for a Lender(s) approval, because the Lender(s) will be taking less of a loss vs Foreclosure.
How long is the Short Sale process?
Time is of the essence when the Seller has defaulted on their mortgage payments. The actual length of time for the Short Sale process varies, depending upon the lender(s) and the issues involved. Typically, the process will take anywhere from 60 to 120 days.
Can the Seller/Mortgager still stay/reside in the home?
Yes. The Seller may stay in their home during the Short Sale process, even though they are not making their mortgage payments.
Will the Seller receive any $$ from the Short Sales?
No. The lender(s) will specifically state in their documents, that a Seller will not receive any proceeds from the Short Sale.
What happens if a Short Sale is denied?
The property will likely go into Foreclosure. A Short Sale is a concentrated effort with the Seller and Real Estate Broker/Agent to market the property, obtain an offer(s), negotiate terms with the lender(s) and proceed with an Escrow.
Will there be any tax consequences for the Seller as a result of a Short sale?
Possibly. The Seller should consult with a tax advisor as to whether or not a Short Sale will result in any tax implications. There may be tax ramifications associated with saving a property from Foreclosure, including but not limited to the issuance of an IRS tax form 1099 for any shortfall of the mortgage debt.