If you are a seller who is in financial distress and may be facing foreclosure (whether you are in it now or will be soon), a short sale may be an alternative. Here are few items you need to be aware of:
- Your credit will be damaged by a short sale, though it will likely not be as damaging as a foreclosure.
- Short sales take time to process and they are very complicated transactions. They often take 3 months or longer to negotiate with the bank(s). You NEED to have a professional helping you complete the short sale.
- You MUST be able to document a financial hardship for the bank to consider your short sale.
- You will need to be prepared to provide all of your financial documents to the lenders for review. This will include two years of tax returns, recent bank statement, verification of assets, a full and complete monthly budget, recent pay stubs, any monetary award letters (e.g. Social Security benefits, VA benefits, unemployment)
-If you are using a professional like 5280 Homes, you will have to sign an Information Release Authorization so we can help negotiate.
-You will need to list your home and allow potential buyers to visit during reasonable hours.
- The difference between what the bank receives and what you owed on the house may become taxable income. You will want to get advice from a tax professional to discuss how this might affect you.
If you have additional short sale questions, please visit http://www.my5280homes.com and click on the 'Short Sale Specialty" tab. 5280 Homes is a short sale negotiation expert and we can help you navigate through the short sale maze and help you avoid foreclosure.
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