| What is a Short Sale? Sometimes, the mortgage lender will agree to a short sale of a home to minimize the lender’s loss on the loan should a foreclosure be necessary. This process involves having a buyer willing to buy and pay less than the amount of the mortgage remaining on the home. The seller of the home signs a listing agreement with a real estate agent when the lender gives his approval for the Short Sale. Then the agent finds a buyer who makes an offer which is less (sometimes considerably less) than the mortgage carried on the home. When the seller accepts the offer and the lender approves it, the sale can proceed. The deal is closed when the buyer delivers the funds, the lending company releases the lien, and the seller turns over the deed. The buyer is happy. The lender can write off the loss on company taxes – but the seller has some additional consequences. What do you have to do? If you can meet the following circumstances, then you may qualify for a Short Sale with your lenders agreement: 1. The market value of your home has dropped. Sales of similar properties must show that the home is now worth less than the unpaid balance of the mortgage. 2. The mortgage must already be in default – that is, payments are not current. 3. The seller has experienced a life change which causes a substantial hardship and the seller must write a letter to explain this hardship to the lender. Some examples include: loss of employment, divorce, severe medical issues, bankruptcy and death. 4. The seller must have no tangible assets. The lender will want to review the seller’s tax returns, financial statements (checking, saving, investment portfolio). Most lenders would expect that all assets had been liquidated to pay the mortgage. Then there are the consequences. Perhaps no buyer will be found, or the buyer’s offer is not acceptable to the lender. If the sale goes through, the lender gets a tax break, but the IRS will consider the amount of the original mortgage that the lender writes off as “income” to the seller and thus may be taxable. Also a short sale will affect the seller’s credit report as a pre-foreclosure that has been redeemed. Always get competent legal advice about the tax liability and credit report issues. A real estate agent CANNOT give you financial advice. |
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| If you would like to know more about how Tony Whitworth can help you avoid Foreclosure buy selling your property on a Short Sale basis that will protect your credit and remove the debt worry from you life, then contact Tony Whitworth the experienced Short Sale specialist to get the ball rolling. The sooner you act the sooner the problem can be resolved. |
| ARE YOU BEHIND ON YOUR MORTGAGE, LACK EQUITY & NEED TO SELL? A SHORT SALE COULD BE YOUR SOLUTION SELL YOUR HOME - BE FREE & CLEAR OF DEBT - PROTECT YOUR CREDIT |
| What is a Short Sale and How Can it Save your Credit Rating and Relieve your Debt Unfortunately, there are times when a homeowner may be forced due to their financial circumstances to sell their home for less money than the mortgages debt to avoid their mortgage being foreclosure. In this situation a bank may be prepared to accept less than what is actually owed dependant upon certain conditions being met. If they are and the debt is cleared then it is said to have been a Short Sale. However, there are very strict requirements and some consequences that the homeowner needs to be advised about to complete a “short sale” |
| Hi, I am Tony Whitworth a Georgia licensed Realtor working out of Atlanta who specialises in Loss Mitigation for home owners who have fallen behind on their actually sell their homes with their lenders approval for less than they actually owe and prevent their homes going into foreclosure and the impact that has on you credit rating. Although I cannot promise to be 100% successful all of the time, I can and will do my best to help you. Please read below to see what a short sale is all about. |
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