Have you heard of a Short Sale? If so, what do you think of it? What are it's pros & cons?
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Pros - Retention of property, better than foreclosure/bankruptcy???Originally posted by justasiam73
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
The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
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
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