Major ten Short Sale Concerns Answered.

Number 10

I canʼt make my house payments but I do have an

capability to pay back all or part of the negative equity.

Also, I would like to preserve my credit score-is a short

sale appropriate for me?

Probably not. In cases where the seller can pay back

all or part of the negative equity (usually to the 2nd lien

holder) it would make sense for them to work out a

repayment plan. The lender will then release the lien

and allow the home to close.

Number 9

If I pay mortgage insurance and default on my loan,

wouldn't that cover the deficiency amount?

The mortgage insurance is not there for your

stability, it protects the mortgage lender.

Number 8

Do I have my home ʻApprovedʼ by my lender

prior to offering it for sale as a short sale?

No. Technically speaking, there is no such thing as

being ʻShort Sale Approvedʼ. The real approval only

takes place with an accepted offer.

Number 7

I just missed a payment and I understand I will miss

more-.how long does the foreclosure system take

and is there time to do a short sale?

The foreclosure procedure takes differing times

relying on your state. In the Midwest a

foreclosure can take over a year. In California itʼs

taking 6+ months. Usually speaking a well-priced

short sale being processed by an educated short sale

listing agent will sell and close in less than 120 days.

Number 6

Will I still have to pay property taxes if I do a short

sale? Property taxes will always have to be paid as part of

any accepted short sale. Whether itʼs you or the

lender depends on their procedures and the specific

agreement you reach while negotiating the short sale.

Number 5

I owe greater than my home is worth and I canʼt make

the payment, do I have to somehow qualify for a short

sale?

The simple answer is NO. If someone canʼt make

their payment and they are otherwise insolvent they

qualify for a short sale. Note: insolvent simply means

their complete debts are great than their assets.

Number 4

Do I have to pay income taxes? I have heard that I

will get a 1099. Will the loss the bank takes be handled

as a taxable gain to me..the seller..is this true?!

It WAS true, now itʼs not. Consult your Tax Attorney or

Qualified CPA. Very recently the tax law was modified

and now mostthose who do a short sale will have no

taxes due.

Number 3

How do you, my listing agent get paid? Who pays

your commission?

The bank will pay the commission as well as all the

other usual closing charges.

Number 2

Do I have to miss a payment to do a Short Sale?

No. Late last year most major lenders started

accepting short sale offers from sellers who have

never missed a payment.

Number 1

I wish to do a short sale and have a 2nd mortgage,

does this make me ineligible?

No. Each of your respective lenders will need to be satisfied in

some strategy to complete the short sale. If your first

lender will be paid off because of the sale, then you just

negotiate the terms with the second lender. Most

short sales do include 1st and 2nd lien holder.

Short Sale help is here with Florida Foreclsoure Help includes various components that help in defining offers for real estate investors, banks and others involved in foreclosures.