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. Loss of job, divorce, illness, and 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.
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