Short Sales, Foreclosures, and Alternatives
Is a short sale right for me?
A short sale is selling your home for less than the total amount that you owe on your property and not having the funds to pay the difference. Doing a Short Sale is better than allowing your home to go into foreclosure. For a short sale to work, you must qualify for a short sale, find a qualified buyer and your lender(s) must agree to accept the sale for less than what is owed.
If you are concerned that your home may go into foreclosure and you have not qualified for alternatives which would enable you to keep your home, a short sale is an option you may want to consider. In a short sale, you would get your lender’s approval to sell your home for less than you owe on your home loan.
A short sale may be an option for you if are experiencing all of the following:
- a hardship, such as a job loss, divorce, medical emergency, or relocation more than 75 miles from your home
- owe more than your house is worth
- unable to afford your current home loan
- unable to modify your current home loan
You should know
There is a negative impact on your credit with the short sale option, so you should explore all your other options first. However, the negative impact may be less than you would have with a foreclosure. Under current Fannie Mae regulations, a short sale may enable you to qualify to buy a house again sooner, in as little as 2 years, than if you had gone through a foreclosure, which would be 7 years before you would be eligible again. Please see Your Short Sale Specialist to learn more about other options that might be available to you.
You should contact a tax professional to gain an understanding of any tax implications.
Because you would sell your home for less than the loan amount in a short sale, you would not receive any money at the time of the sale. Selling a home in a short sale requires the approval of your lender. In addition, if there are any other loans against your home, like a home equity loan or line of credit, all lenders must agree to the sale.
If you have just started to looking at the short sale process or thinking that foreclosure is your only option, give us , Your Short Sale Team, a call (910) 340-5524 to help you by explore all the other solutions that may be available to you to avoid a foreclosure plus we will work with you to:
- determine your home's current market value, cost of selling your home
- whether you will qualify to do a short sale - hardship, assets, income, etc.
- determine where you are in the foreclosure process
- work with an attorney who specializes in short sale negotiations
- submit a short sale package to your lender, if qualified
- market your home to sell quickly
- work with lender to avoid deficiency judgments and possible tax consequences