The purpose of having a Short Sale Professional is to help property owners, realtors and lenders avoid the lengthy and costly process of foreclosure. From the property owners point of view there is a much greater benefit; they are able to overcome a very stressful period, avoid the dreadful eviction process and possibly protect their most important asset - their credit.
Let's get to
the point and answer your questions:
�
What is a Short
Sale? A Short Sale
occurs when a property is sold and the lender agrees to accept a discounted
payoff.�This means the lender will release the lien on the property for less
money than is actually owed.�
How long does it take to negotiate
and close a Short Sale? A Short Sale takes an average of 30 to 60
days to negotiate and close.
Can you negotiate a Short Sale on
a property with more than one lien? Yes. The negotiation process is
the same regardless of the number of liens.
Can any Real
Estate Agent assist me in selling my home in a Short Sale situation? Possibly, but usually you
have only one shot to succeed in a Short Sale transaction. Therefore, it is
highly recommended you work with a company that specializes in this field and
experienced in Short Sale negotiations so that they can properly represent
you.
When should I start a Short
Sale? It is best to begin a Short Sale
when you realize you can no longer afford�your mortgage.
The reason
for this is so your property can be marketed properly and you can receive the
highest offer possible. We have negotiated Short Sales that
have already gone into foreclosure sale.�Contact Us to see
if you have enough
time.
How does a foreclosure
versus a Short Sale affect my credit? Foreclosures show up on your
credit report as "FORECLOSURE", and can stay on your record for seven years.
This may make it difficult for you to obtain a new loan in the
future.� It must also be disclosed on job applications which can sometimes
make or break a decision to employ you. A Short Sale is listed as "SETTLED
DEBT", and is much less harmful to your credit. Please consult a credit company
for more
information.
In a Short Sale, it is possible the bank could report the difference
in what you sell your property for and what was owed. This means the IRS could
consider the difference as income, and you could be taxed on that income. The
bank might also ask you to pay a portion of the difference back in the form of
an unsecured note, which is similar to an I.O.U. However when we negotiate with
the bank, we employ tactics to have the bank consider the debt settled and that
no further monies are owed.
In a
foreclosure, your house is sold at an auction. This typically causes the
difference of the total amount you owe and the foreclosure sale price to be
much greater. This means you have a higher potential tax liability.
Additionally, the bank may come after you for a Deficiency
Judgment.
�
A successful Short Sale
will eliminate a deficiency judgment, minimize your tax liability, and keep the
foreclosure off your credit.
Chulavista.com disclaims it is not associated in any way to or with the City of Chula Vista.
ChulaVista.com's parent company is a member of the Chula Vista Chamber of Commerce.
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