What is a Short Sale?
A "short sale" is term used to describe a situation when a home owner is in financial hardship and must get their home sold, and the lender(s) agree to accept a lower payoff amount than what is owed in order to avoid further financial loss through a foreclosure. Our services are 100% free for you, your lender will pay all traditional closing costs in a short sale. A short sale does not have the same effect as a foreclosure does on your credit. You do not always have to be in default to work a short sale. We are not investors attempting to profit from your misfortune as much as possible, we are state licensed and regulated Realtors® here to look out for YOUR best interests. A short sale is much less costly to a lender than a foreclosure, and they are typically willing to cut their losses and accept one Our agents work hard to help get you complete forgiveness of your debt from your lender, regardless of what the Short Sale price of your Condo, Home, or Town home is sold for!
Don't forget that lenders are in the lending business, and not in the property management industry. It is usually not in your lenders best interest to foreclose on your home. From a recent study, the average foreclosure costs a lender nearly $60,000 to go through! Most are happy to cut their losses in order to avoid a costly foreclosure proceeding. This short sale process is and highly specialized and very complex. It is important to have an agent who is experienced in getting them closed, as it is not part of the "Realtor basic training" so to speak. In addition to having experience and training in short sales, our agents must agree to the highest level of integrity and pass very strict requirements to join our network.Please contact us for additional information. And remember, we are here to help. Do I Qualify for a Short Sale?
There are a few factors that lenders are looking for to see if you could qualify for a short sale. Please contact us to discuss your personal situation. Even if you feel you may not qualify, don't give up. It's worth trying!
Financial Hardship
When we submit your short sale package to your lender(s) we will include a hardship letter from you. This could be anything from a significant adjustment in your mortgage payment due to interest rates, a job loss, too much dept, business failure, sickness or you owe too much on the property than what it can be sold for.
Monthly Shortfall
This is another qualification that we will need to address to your lender(s). They want to see that you cannot afford to pay your mortgage. That is why we have created a simple financial worksheet for you to fill out to demonstrate your hardship.
Insolvency
This means that you do not have the means to pay down your mortgage. However, please realize you do not have to be broke in the eyes of the lender. The lender realizes that you have other financial obligations as well including living expenses. Will I Have Any Tax Liability After a Short Sale?
We strongly urge you to consult both an attorney and a tax consultant before you enter into a short sale or are about to go into foreclosure. Virginia IS a deficiency state. It is important to be clear of any tax or legal ramifications either a short sale or a foreclosure would have. If you do not have an expert, we can help refer you to some great professionals who can help. |