Short Sale

Have you heard of a Short Sale? If so, what do you think of it? What are it's pros & cons?

Have you heard of a Short Sale? If so, what do you think of it? What are it's pros & cons?

Pros - Retention of property, better than foreclosure/bankruptcy???

Cons - Meeting the criterias, can be an overwhelming process, taxes involved

Definatley consult with a CPA if you decided to use this option.

Good Luck :)

justasiam73

I work with homeowners facing foreclosure to create a winning solution to the situation they are facing. I have worked with homeowners to create a work out plan with the lender as well as do a short sale on the property.

At this time due to the number of over leveraged properties many lenders are more inclined to accept a short sale on the property. It is typically a better situation for the lender and homeowner to sell the property for less than what is owed, short sale than it is to have a foreclosure on the books or your credit.

As Todd mentioned there may be tax consequences of doing a short sale and if it isn't done correctly the lender may come after you for the amount that was shorted.

I have worked with several homeowners however in putting a short sale together and getting the bank to accpet it without going after the homeowner for any defciencies. The criteria for qualifying for a short sale is usually the following:

- Proof of Financial Hardship
- Proof that you can't continue to afford the property
- Showing current market conditions and comparables that have sold for less than owed
- Condition of the property

The documents that you usually have to provide are:
- pay stubs
- W2
- Bank Statements
- Hard Ship Letter

If you would like to discuss this further I would be happy to offer some additional resources for you in moving forward with a short sale. Sometimes it is a great way to unload the property, threat of foreclosure and move on with your life.

Good Luck
Stefanie Blackburn
www.wanthouse.net