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A Short Lesson
On
Short Sales
What is a Short Sale?
A Short Sale is a real estate transaction in which
the lender agrees to allow a property to be sold for less
than what is owed on the note.
How Will a Short Sale Affect My Credit?
Your FICO score will take a loss of approximately 100 points.
How Long Before I Can Buy Another Home?
The good news for Short Sale sellers vs those who go into Foreclosure is that the
wait is much shorter before being able to buy another home. You can usually
buy again in about 18-24 months at a good interest rate,
IF your credit has stablized.
What About Deficiency Judgments?
The bad news is that a seller could be subject to a deficiency judgment for the difference
between the loan amount and the amount paid by the buyer. The questions must be
handled at the beginning of the negotiating process. Until last year the lender also
gave the seller a 1099 showing the forgiven amount as income to the seller.
Congress has eliminated these taxes on your primary residence until 2012.
You are advised to check with your CPA or Real Estate Attorney before attempting a Short Sale.
Click Here for More Info from the IRS
How Long Does A Short Sale Take?
A lot longer than a normal real estate transaction. It can be anywhere from
90 days to 9 months or longer. The Lender is in charge!
Can The Seller Leave the Closing Table with a Check?
Unfortunately the answer is no. The lender is losing money and part of the
deal is that they will not allow the Seller to walk away with any money.
Is Your Situation Right for a Short Sale?
This question can only be answered by talking with your lender. This is one of the
areas in which we specialize. If you are in financial distress and fearful that
you may be facing foreclosure, please call us and see if we can help you
negotiate a short sale with your lender.
Don't be embarrassed. We do these all day, everyday.
Here are our numbers
Vince at 404-421-4224 or Carol at 404-819-0591
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