A short sale unfolds when an individual owes more on their home than its current market value, a scenario commonly referred to as being "underwater" on the mortgage. When one reaches a point where maintaining mortgage payments becomes untenable, a short sale becomes a plausible option.
In essence, a short sale involves the lender agreeing to accept an amount less than the outstanding mortgage balance, enabling the homeowner to sell the property to a new owner capable of meeting the financial commitments. This strategic move can be a lifeline, particularly in scenarios where foreclosure looms large. Although the loan amount remains unchanged, the bank's willingness to settle for less than the total owed amount facilitates a negotiated solution.
If you are looking for a Short Sale expert in Miami, contact us to schedule a free consultation.
The total amount you owe including mortgage, liens HOA fee, and closing exceeds the current value of the house.
Homeowner is experiencing financial difficulties (financial hardship), such as an illness in the family, a job loss or other serious situation that affects your finances.
Your mortgage loan payment is overdue by a minimum of 30 days.
Appraisal conducted by the lender reveals that the value of the house is lower than the amount of your mortgage.
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If the current value of your house is not greater than the outstanding loan amount, your lender may permit a short sale. This scenario commonly referred to as being "underwater". This option allows you to sell your property on the market for an amount that falls short of what is needed to fully repay your mortgage loan, thereby enabling you to avoid foreclosure.
We will ensure that the lender provides written confirmation stating that you will have no outstanding debt obligations once the house is sold. This written confirmation is a crucial step in the process of a short sale.
A significant advantage of a short sale is that the seller is not responsible for covering the cost of our services. Instead, the lender assumes the responsibility of compensating us to represent you throughout the transaction.
This arrangement relieves the seller of the financial burden and allows them to focus on the short sale process without incurring additional expenses. The lender pay us to ensures that the seller receives professional assistance and guidance throughout the complex short sale procedure.
Homeowners may be eligible for a relocation assistance amount ranging from $1,500 to $10,000, subject to approval by the lender.
There's no immediate requirement for you to move, if you abandoned the property, you may not qualify for relocation assistance. Our suggestion is to remain on the property and utilize this time to search for a new place.
Each short sale case varies according to the homeowner's circumstances. As a rough estimate, the process typically spans a period of 3-4 months.
A debt relief occurs in a short sale when the lender pardons the debt, potentially resulting in tax implications, as the IRS may classify it as taxable income. There is a specific exemption in place, particularly for debt forgiveness related to primary residence, which may enable homeowners to avoid paying taxes on such forgiven debt. Mortgage forgiveness act has been extended since 2007.
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