Advice for Sellers Considering a Short Sale

Certified Short Sale experts in Boca Raton

Many buyers find themselves in a position where they owe more on their home than it’s worth.  A short sale transaction can come in handy if you need to offload your property. While there are a variety of things that will affect whether or not you’re approved, the first step is to obtain your lender’s blessing that they will agree to sell the property for less than what you owe. While short sales will help you get your head above water again, there are some considerations that you should take into account before you put all of your eggs into the short sale basket.

First off, just because your lender is agreeing to the short sale doesn’t mean that you will be absolved of the entire debt. Right now is a great time to proceed with a short sale because the 2007 Mortgage Forgiveness Debt Relief Act, which helps owners of primary residences avoid paying taxes on forgiven debt, is set to expire at the end of 2012. Despite this law, it’s still possible that to sell your property for a loss, and still owe the unpaid difference to your lender and be responsible for the taxes. It’s best to sit down with a financial advisor, accountant, your tax professional, and your lender to make sure that pursuing a short sale makes sense in your specific situation.

If you are interested in short selling real estate, there are number of factors to consider. First off, sit down with your lender and get a complete picture of the options your lender has regarding loan default. How your lender processes a default depends on the type of property you have and the type of debt. Speak to your lender’s home retention or loss mitigation department, and explain your situation so they can offer you available options.

This is also a situation where you should obtain legal and tax advice from a qualified professional. Short sales are complicated transactions that can have lasting consequences, so you will want to know the pluses and minuses upfront. Your accountant or tax advisor will have good advice, and will also be able to explain the Mortgage Forgiveness Debt Relief Act. Finally, look for a qualified real estate professional who is familiar with the short sale process. It’s perfectly okay to interview a real estate agent about their short sale experience and see how much they know about the process.

Also, many predatory rescue companies are looking for petrified home owners who feel like they have no other choice but to turn over their fate to someone who can rescue them. There are a number of ways you can detect a predatory scam. Here’s a look at a few of them:

  • Anything that guarantees to stop the foreclosure
  • Instructions not to contact the lender
  • A promise that you can buy-back or remain in the home following the transfer of title
  • Required fees upfront
  • Requests to execute a power of attorney
  • Transfer of title or lease of the property

 

If you do feel like you have come in contact with a scammer, please report it to the Department of Financial Institutions at: "http://www.dfi.wa.gov/" or by calling 1-877-RINGDFI (746-4334). Lenders, the government, and unsuspecting victims will thank you.

We are a team of Boca Raton short sale realtors in Palm Beach County Florida. Please contact us if you would like more information on how to short sell your home or the short sale process.

 

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