|
If you're considering selling your home as a "short sale", call us. We'll guide you though the process.
Bill 480-694-3511
Carol 602-329-8080
Sandy 602-499-2726 |
A Short Sale occurs when there is more debt owed on the property than the property’s value and Creditor(s) agree to forgive (or modify) the debt so the property can be sold. In a loan default situation, the creditor(s) may be willing to agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed as payment in full.
Key differences between a normal residential sale and a Short Sale
Short sales have some key differences than a normal residential real estate transaction. Short Sales:
- Require both the Seller and Seller’s Creditor(s) approval;
- Seller REQUIRED to qualify based on financial hardship;
- Time Consuming— It can take weeks or months for a response to an offer;
- No guarantee the offer will be accepted;
- Require a Short Sale Addendum to be included with all offers.
|
You are a good candidate to be a Short Sale Seller if...
- A verifiable financial hardship is or has been the reason for your delinquency;
- You are willing to provide documentation to creditors to prove the hardship exists;
- You are willing to be patient while the creditors evaluate your situation, the value of the home and the offer; the process could take “weeks or months”;
- You don’t need to sell the home on a schedule;
- You’re not selling an investment property;
- You are prepared for a rejection of the offer by the creditor;
- You understand and accept the legal and tax ramifications of the short sale.
Short Sale Benefits
If you are a good candidate, selling short may be the choice for you. Some benefits:
- You may be able to negotiate a release from the remaining indebtedness;
- You may be able to avoid or limit tax liability to the IRS created as the result of “debt forgiveness.”
- The impact on your credit score may not be as negative as a foreclosure would be. The score may not drop as far and may recover faster;
- You won’t have a foreclosure on your credit;
- Generally NO money is needed to close
- A positive step towards home ownership in only 24 months
Selling Your Home
- Allow showings;
- Keep the home in show condition;
- Stay available for your agent;
- Stay in communication with your agent;
- Cooperate with marketing efforts;
- If vacant: leave utilities on.
The Process
- Listing Agreement is reached and listing is submitted to MLS;
- Seller completes the Short Sale Package requested from creditor(s);
- Home is Marketed;
- Purchase Offer Received and agreed to by seller;
- Short Sale Package and offer Submitted;
- Creditor(s) Order Appraisal;
- Negotiations between the creditor and the seller;
- Property is Sold.
Your agent's involvement and expertise in short sale transactions is limited to the sale of the property. For advice concerning legal, tax or credit issues, sellers should consult professionals in those fields.
Short Sale Transactions are more complex and challenging than the other types of transactions common in the today’s market environment,
Choose your representation wisely, Call
Bill 480-694-3511
Carol 602-329-8080
Sandy 602-499-2726
If you'd like to know more about how we might be of service, check out:
|
|
