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When handled properly, short-sale offers several advantages over other foreclosure methods..
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Owners may stay at the home
During the short sale process, owners may stay in the home. Since typical short sale may take between 2 months to 9 months, this period allows home owners a grace period to re-align themselves and formulate plans for their future.
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Owners may qualify up to $3,000 for moving
In certain cases, home owners may qualify for certain CASH for moving expenses. The exact amount varies from case to case and from lender to lender. After analyzing your scenario, our short sale team can give you more details on this benefit.
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Certain debts may be forgiven
One of the biggest advantage of short sale is certain debts (sometimes call deficiencies) can be forgiven. Through negotiations, our team can have short sale lenders let go the short-pay amount. For example, a home owner currently owns $400,000 on his mortgage. The short sale lender approved a case, and the house was sold for $220,000. The $180,00 short pay is forgiven. Debts forgiveness may vary from case to case depending.
1. The lender or lenders involved
2. Amount of deficiencies
3. Occupancy status
4. Nature of the debts
For further details on this subject, it is advised that home owners to consult with their laywers and or tax consultants.
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Short sale can be done with little or NO COST to owners
Short sale owners are often already facing financial difficulties and concerns about costs of doing the transaction. Unlike regular real estate transactions, our team can help home owners complete a short sale with virtually NO COST. Indeed, our team can negotiate and have those costs paid for by the short sale lenders including:
1. Sale commissions
2. Escrow and title fees
3. Property taxes
4. Transfer taxes
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Lesser negative marks on credit report
When home owners default on a mortgage, it has already done lot of damages to their FICO score. Upon completion of a short sale, it is up to the lender to report to credit agencies. If the lender reports, it often shows as short-pay on credit report. This mark brings much less negative affect comparing to foreclosure or bankruptcy. Depending on underwriting guidelines, some lenders may grant new loans after two years.
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