Short Sell Your House - 7 Steps That Will Help Avoid Foreclosure
Short selling your home is not a decision you should make lightly. It
is often a difficult and long process. If you are successful, the
difference between what you sell the house for and what you owe on the
house is forgiven. You'll also avoid a foreclosure on your record. This
could be the difference between buying another home in 2 years or 7 years.
Here's a Story
After 3 years of day trading and some big
losses and large loans, I was unable to keep up my mortgage payments.
My debt was only getting worse, and I knew I had to do something to
avoid foreclosure on my home. I connected up with a real estate agent
that only did short sales, and did a lot of research online as to what
the process would entail. In June of 2006 I sold my home for nearly
$100,000 less than what I owed at the time. It wasn't an easy process
by any means, but I feel it was the best option for my situation, and
likely for many others now facing foreclosure. A short sale can be the
best option for all parties involved (you, the bank, investors, etc)
when you can't keep up with your mortgage payments.
Step 1 - Get Educated
You need to know your options when it comes to your home. If you
want to keep your house, but can't make the payments and you owe more
than your home is worth, you may look into filing bankruptcy or Loan Modifications
This will stay the foreclosure process (not forever) and may allow you
to stay in your home and repay your lender under different terms.
Deed in Lieu
If you owe more than the home is worth, this is not an option for
you. Deed in Lieu means that you give up the house to the bank and walk
away. Ie, you give up the deed instead of facing foreclosure. Be carefule there are many types of people and firms
looking to help when in fact they are taking your home from you.
Short Sale
If you owe more than your home is worth, and don't want to declare
bankruptcy or face foreclosure, then a short sale of your home is the
best option. A short sale does have potential tax implications.
Step 2 - Get Some Help
CALL ME TODAY! 609-868-1171 Don't wait. Email me! This is probably the biggest tip I would give to people who want to sell their home in a short sale.
As your EXPERIENCED SHORT SALE REAL ESTATE AGENT.
I will be able to deal and negotiate with the mortgage company(ies) on your behalf.
My experience will give you a much better chance of successfully short selling your
home. Experience counts when dealing in these difficult procedures. You want to get right the first time!
Because there is often so many different entities involved in a
mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc)
you really don't want to do this on your own, with no experience. Plus,
you'll never have any out of pocket expenses to pay an agent, as
everything is essentially paid by the lender.
Step 3 - Get Started Now
The longer you wait to get started with the short sale process the
less chance you have of success. Every state is different with their
foreclosure process. You need to decide quickly to start the short sale
process if you're getting behind on your payments, or have already
received a notice of default.
Step 4 - Follow Instructions Exactly
Get the house ready to sell. Don't get too hung up about the price. You will have detailed instructions in the process
to follow so the mortgage companies and their investors will work with us and help you. Otherwise it can be a long
a dangerous process for you. There is a reason for everything to be done and you will understand the process so you
and your family will be more comfortable while the process takes place.
In the short sale story above, the house was priced pretty low and got an
offer very quickly. In the past it took almost 4 months from when we got the offer to when the closing
took place. Today with experience I can close a deal in reasonable amount of time. Price is not what matters,
you and your family is what matters. all you should care about is getting the place sold so you can get on with your life. A
Short Sale can mean the difference between buying home in 2 years or 7 years.
Step 5 - Know The Tax Implications
Congress recently passed and the president signed a law that likely releases you from any tax implications of a short sale.
Talk to a qualified tax attorney or CPA about this for your
particular situation. If you don;t have a good attorney or CPA I can refer one to you.
Step 6 - Prepare to move quickly
Because your closing date may not be set in stone, you need to be
prepared to leave your home quickly if needed. Your possessions are just inanimate things; it's
the relationships in your life that really matter. I will want you to talk with a relative or good friend at this time.
Do not feel ashamed or embarrassed. Many good people have fallen on bad times recently. "Bad things sometimes happen to good people"
Sell anything you don't need or haven't used in the last 6 months on craigslist!
The less you have to deal with on moving day... the
better.
Step 7 - Prepare yourself emotionally
If you are already in default, or have a foreclosure pending, this
whole scenario and process of trying to short sell your home can be
very emotionally draining.
You will receive solicitations from everyone and their mother. You
may have people stop by your home while you are still there. It can be
a very difficult process.
Make sure you have people in your life to talk to about your
situation. You will need a support network to help through this time in
your life. It will pass. And you are being proactive in seeking a short
sale of your home. You are taking the right steps, and in time,
everything will work out. I can't promise it will be easy, but you will
make it! Email me with a question!
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