A Short Sale can occur when a
seller owes more against the property than it is worth and,
this is a key element, has to SELL the property. There are
many reasons that a homeowner might need to sell a property
including but not limited to:
job transfer out of the area.
divorce or separation.
an inability to make the monthly mortgage payment because
of a payment increase due to the originally negotiated
agreement.
an inability to make the monthly mortgage payment because
of the loss of a job, a cut in work hours or overtime, or an
illness or death in the family.
Short sales are more common when the value of real estate
is not increasing, has declined or is decreasing. There are
some options available to homeowners who are struggling to
make mortgage payments and would like to try keep their property.
See Help for Homeowners Who Cannot Make the Mortgage
Payment. But if you MUST SELL
under financial duress you may consider a short sale in lieu
of foreclosure.
Are Short Sales Really “All the Rage”?
If you read
the paper or listen to the radio you might believe that the nation
is in the midst of a ‘foreclosure revolution.’ But
in reality it is just a small, although growing, segment
of the real estate market. Carefully explore your options
if you believe that a Short Sale is in your future. Do this
early, if foreclosure is less than 45 days away you may have
waited too long. Call Mary or Bob
NOW to find out what your
options are.
Do you need to think about a Short Sale?
Contact a trusted real
estate consultant, like Mary or Bob Willett to obtain a competitive
market analysis on the property and a Seller’s Net Sheet. Make sure you are dealing
with a Realtor® who is familiar with the process and
will include all the actual costs of selling your property,
for example owed back taxes or utility liens. This is NOT
the time you want the best picture scenario, you need accurate
information – good and ugly. This is really the
only way for you to determine if you’ll need to Short
Sale.
Will this process affect my credit?
There are really two questions
and multiple answers here. The bottom line is yes, in some way,
a short sale or deed in lieu of foreclosure will have an affect
on your credit. With the widespread use of FICO scores and automated
underwriting systems, scoring models are being revised to reflect
the influence of short sales or deed in lieu of foreclosure.
And although some real estate professionals are declaring
that short sales are not as damaging to credit as foreclosures,
it’s not a sure bet.
Remember two things (1) a short sale that leads to debt forgiveness
is potentially a tax liability and that could result in further
hardship at tax time, and (2) the resulting impact on your
credit score could cause you to be unable to purchase another
home or increase the costs of auto or other loans.
Looking
for a Home? Contact Mary Willett: Mary@SacramentoHomes.net
• Cell Phone/V.M.: (916) 715-0122 Need a Loan? Contact Bob Willett: Bob@SacramentoHomes.net
• Cell Phone/V.M.: (916) 485-7939
