The real estate word Short Sale came from the fact that the Lender’s payoff is coming up “short”. Short Sale happens when a Lender allow to the sale of a property that is less than the amount owed on a mortage. Purchase and Sale Agreement (from Realtor), Addendum to Purchase (from Realtor), Authorization to Release Information, Two Years FULL Tax Returns , Two Months Bank Statements (Most recent), Last Two Pay Stubs, Fill Out Financial Worksheet, A Handwritten Hardship Letter, If FHA, Form 90036 and Homeownership Counseling Certificate include a short sale package.
With short sale, the rest of the homeowner’s debt is forgiven. Rather than suffer the lengthy and expensive foreclosure process, a homeowner agrees to a short sale though the sale of your Leesburg Virginia Home, for instance is less than the owner owes on the mortgage.
Foreclosure is definitely not the only option. A Short sale is a good alternative. For one, a potential buyer will get the home at a reduced price. Then, the seller will not face bankruptcy but will get out of the mortgage liability. The lender on the other hand though agreed to a loss from accepting fewer benefits will not be facing the protracted process of foreclosure.
Although a better option than foreclosure, waiting for the lender to agree to a short sale can be lengthy and hard. But if you’re on the way to short sale your Homes for Sale in Virginia , Realtors advise that you seek help from a real estate agent short sale expert. Here’s what they say:
1. Check if the indeed the Lender agrees in writing that all debts in the short sale process was forgiven.
2. Make things clear with the Lender how the short sale will be reported on your credit report. A short sale can gie you a negative credit report although the report wil just say aas ‘settled for less than the full balance,’.
3. Make certain that you are well-informed about the tax repurcussions.. So, if your Chesapeake VA home was agreed to a short sale for $30,000 less, then a 1099 for $30,000 will be issued by your lender and you would have to pay taxes on.
Short sale is a win-win situation according to Real Estate agents. Foreclosure doesn’t have any credit advantage over Short Sale yet, the latter is an advantage over the former if you ever decide to buy another home.
