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 Upside
down on your mortgage, and don't know what to do to get out of
the situation? A short sale is a good option
for distressed homeowners who have found themselves facing a new
hardship in trying to keep a home. A loss of job, divorce,
illness, or many other factors open the door to the best
solution for most people...the SHORT SALE.
A short sale is a simple term for a complex real estate
transaction involving negotiations between a buyer and a seller
and his one or two lenders. It takes time, but the process is
well worth the effort. Be prepared to provide pay stubs, tax
returns and a personal financial statement to your lender. Same
goes for your 2nd lender if you have two mortgages.
The short sale is one of the best alternatives if you just can’t
find a way out of a bad situation. Foreclosures will often lead
to huge mortgage deficiencies for first and second lenders that
you will have to pay or settle. Short sales eliminate this
problem because the mortgage companies agree to settle for less
money than is owed on the home.
If you have a second mortgage, the short sale is your only
alternative that will allow you to settle both mortgage
obligations. A foreclosure will not allow the second lien holder
any recourse but suing you for the entire remaining balance on
the 2nd mortgage.
Find a REALTOR® who has experience in short sales and
understands the negotiation process for a short sale. Because
there are state and federal income tax ramifications, consult
your CPA before listing your home in a short sale.
If you have any questions, please feel free to contact me by
email or telephone.
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