Trying to avoid foreclosure? A short sale may be your answer. Homeowners facing financial hardship have several options, but a short sale is a very common solution. What is a short sale? A short sale is an agreement between the seller and the lender to sell their property for an amount lower than the balance owed in order to relieve the seller of the mortgage obligation.
Unlike a foreclosure, a short sale may prevent and help you avoid a huge hit to your credit score that foreclosure may cause. Depending on the negotiated amount of the sale and the timeliness of past mortgage payments, a short sale may be a better alternative.
Did you know? Short sale participants can later purchase a home in a shorter time than those who foreclose on their property. In a short sale you can purchase after two years unlike in foreclosure it is after seven years.
A short sale can be completed by finding a buyer to purchase the home who is willing to pay current market value, and having the mortgage provider agree to the sale. Any shortage after the sale will then either be written off by the lender and an IRS 1099c is issued to the seller, or a deficiency remains which the lender may pursue to collect against the seller.
Changes were recently made to help streamline the short sale process including:
· An expedited short sale approach for borrowers most in need.
· Lenders will now have the power to quickly and easily qualify certain borrowers who are current on their mortgages for short sales.
· HAFA offers home owners and investors accessible solutions to the short sale of your home.
The short sale process can be complicated, and the lender may not be willing to negotiate. It is important to know that a real estate attorney can help negotiate the sale and terms with your mortgage lender and provide you peace of mind that your short sale is being handled by an accountable professional.
If you have legal questions regarding your short sale or you are considering your options, call Blick Law Firm today at (813) 931-0840 to schedule a free 15-minute consultation with attorney Michael Blickensderfer.