Short Sales-frequently Asked Questions
February 28th, 2008 // 9:53 am @ admin
Keith Junor asked:
Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None—-In the later part of 2007—Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
Take a look and see if you agree. Click the paragraph below.
Introducing A Complete Course That will
Show You How To Buy Real Estate Nothing
Down, Realize Returns As High As 16% to 50%
With Tax Lien Certificates and Purchase Your
Next Home or Investment Property For 30%
to 40% Below Its True Market Value With
Foreclosure Short Sales.
Answers to the Most Frequent Asked Short Sale Questions
1. Q Will I be eligible for a short sale if I have 2 mortgages?
A Yes- The majority of short sales involve 2 lien holders. They both have to agree and be satisfied. If only the first lien holder is paid off after closing, the second mortgages terms has to be re-negotiated and resolved.
2. Q How Many Payments do I have to Miss to Qualify for a Short Sale?
A None—-In the later part of 2007—Most major lenders began to accept offers of a short sale from sellers that had never missed a payment or been late.Their personal situation had changed.
3. Q Will I be Responsible for Additional Income Taxes for the Difference of Loss to the Bank?
A No in most cases. It was true in the beginning of short sales; but now the rules have changed. Consult with your CPA or tax Attorney. The law has been changed so that most people are not responsible for any additional taxes.
4. Q Will I have Trouble Qualifying for a Short Sale If I Owe More Than My House is Worth?
A No If your debts are greater than your assets and you cannot make your payments; then you will qualify for a short sale. It’s that simple.
5. Q Is There Time for a Short Sale Before the Foreclosure Process Begins If I Have Only Missed One Payment but Know I will Miss A Lot More?
A It varies in each state. A rule of thumb is; 6 months to a year. A well priced short sale usually sells and closes in less than 120 days.
6. Q Is A Short Sale Right for Me If—I Have The Resources to Pay All or Part of the Negative Amount Owed. I Don’t Want to Ruin My Credit. I Just Can’t Make My Payments Any Longer.
A In this case; it would be better to work out a repayment plan with the first lien holder. The monies you have will more than likely be used to pay the 2nd lien holder. They will release the lien. The property can be sold and closed in a regular manor.
7. Q Does the Lender Have to Approve My Home Before It Be Listed As A Short Sale?
A No There basically is no such thing as being short sale approved by any lender. The approval occurs after there has been an accepted offer.
8. Q Will Property Taxes Still Have to Be Paid If I do A Short Sale?
A Yes Property taxes always will have to be paid. Each lender has different policies and it will depend on the specific agreement you reached while negotiating the short sale. So, either yourself or the lender will be responsible for paying the property taxes.
9. Q Why Doesn’t my Mortgage Insurance Pay The Deficiency Amount?
A . Mortgage Insurance is not for the protection of the owner. It only protects the lender. In most short sales there are 2 lien holders and NO mortgage insurance.
10. Q Who Pays the Listing Agent’s Commission?
A The bank will pay all commissions along with the usual closing costs.
I believe that short sales are the easiest, low risk vehicle for massive wealth at this time. The more you earn about it the more you earn from it. I recommend the course below.
Take a look and see if you agree. Click the paragraph below.
Introducing A Complete Course That will
Show You How To Buy Real Estate Nothing
Down, Realize Returns As High As 16% to 50%
With Tax Lien Certificates and Purchase Your
Next Home or Investment Property For 30%
to 40% Below Its True Market Value With
Foreclosure Short Sales.
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Category : Short Sale Questions
What is a Short Sale? How Do I Negotiate a Short Sale With My Lender?
July 30th, 2004 // 11:02 pm @ admin
creditlawgroup asked:
A short sale is a great way to sell your home and avoid the credit consequences of foreclosure. A short sale is basically the negotiation with the lien holder for a payment of less then you owe.. If you’re on the brink of having your home foreclosed on it’s a good idea to start negotiations with your lender right away. Short sales are faster and less expensive than foreclosures. Foreclosure is not something you want to passively allow to occur, its detrimental to your life and should be avoided at all costs. A foreclosure will completely ruin your credit, lowering your score as much as 300 points! This is very difficult to recover from and in most cases takes years to bring your credit score back up. For the time after a foreclosure you will not be eligible for any types of credit such as loans, mortgage, credit cards, or even employment. Many employers check the credit of applicants (especially if the position involves handling of money) and poor credit history may not qualify you for the position.
A short sale is a great alternative to foreclosure but definitely should not be considered a good thing. Short sales will lower your credit score, Although much less than a foreclosure will. Homeowners should only consider going through with a short sale when foreclosure is eminent otherwise. The lenders will typically approve a short sale if they are losing less money out of the deal then if they foreclosed on your home. It’s important to understand that your lender is looking out for the companies best interest when negotiating a deal rather than yours. A short sale is a long complicated process that is difficult for individuals to negotiate without professional help. Most people who need a short sale are usually “upside down” on their loan. This means they owe the bank more money than they can sell their house for. The whole purpose of a short sale is to get your lender to allow you to quickly sell your home for less than it’s worth to prevent foreclosure. Your lender will receive all the proceeds from the sale.
If you are considering selling your home through a short sale the next important step is choosing a reputable company to negotiate on your behalf. When dealing with something as serious as negotiating a short sale with your lender it’s almost a must that you let an experienced attorney work on your behalf. The mortgage companies have attorneys working for them and so should you. You absolutely need an individual with extensive knowledge of the law to negotiate ideal terms for you the homeowner. There are many services out there that claim they can help you out, but if they don’t have attorneys on their staff its very unlikely they can negotiate the very best terms for you. A short sale is a maze of legal proceedings and documents that usually last about 6 months and when dealing with something as serious as your home its best to rely on the best organization you can. For starters you can check a company’s BBB (better business bureau )record for any complaints and see how long that company has been established.
A short sale is a great way to sell your home and avoid the credit consequences of foreclosure. A short sale is basically the negotiation with the lien holder for a payment of less then you owe.. If you’re on the brink of having your home foreclosed on it’s a good idea to start negotiations with your lender right away. Short sales are faster and less expensive than foreclosures. Foreclosure is not something you want to passively allow to occur, its detrimental to your life and should be avoided at all costs. A foreclosure will completely ruin your credit, lowering your score as much as 300 points! This is very difficult to recover from and in most cases takes years to bring your credit score back up. For the time after a foreclosure you will not be eligible for any types of credit such as loans, mortgage, credit cards, or even employment. Many employers check the credit of applicants (especially if the position involves handling of money) and poor credit history may not qualify you for the position.
A short sale is a great alternative to foreclosure but definitely should not be considered a good thing. Short sales will lower your credit score, Although much less than a foreclosure will. Homeowners should only consider going through with a short sale when foreclosure is eminent otherwise. The lenders will typically approve a short sale if they are losing less money out of the deal then if they foreclosed on your home. It’s important to understand that your lender is looking out for the companies best interest when negotiating a deal rather than yours. A short sale is a long complicated process that is difficult for individuals to negotiate without professional help. Most people who need a short sale are usually “upside down” on their loan. This means they owe the bank more money than they can sell their house for. The whole purpose of a short sale is to get your lender to allow you to quickly sell your home for less than it’s worth to prevent foreclosure. Your lender will receive all the proceeds from the sale.
If you are considering selling your home through a short sale the next important step is choosing a reputable company to negotiate on your behalf. When dealing with something as serious as negotiating a short sale with your lender it’s almost a must that you let an experienced attorney work on your behalf. The mortgage companies have attorneys working for them and so should you. You absolutely need an individual with extensive knowledge of the law to negotiate ideal terms for you the homeowner. There are many services out there that claim they can help you out, but if they don’t have attorneys on their staff its very unlikely they can negotiate the very best terms for you. A short sale is a maze of legal proceedings and documents that usually last about 6 months and when dealing with something as serious as your home its best to rely on the best organization you can. For starters you can check a company’s BBB (better business bureau )record for any complaints and see how long that company has been established.
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Category : Short Sale Questions