|
|
Thinking of walking away from your home and mortgage?
Facing foreclosure?
Know your options first!
In this time of a depressed real estate market I constantly hear
stories about the number of foreclosures skyrocketing. But there is an
alternative to foreclosure that is gaining popularity: Short Sale. A
Short Sale occurs when a homeowner owes more on their property than can
be collected through a real estate sale. A Short Sale allows the
homeowner to sell their property, avoid foreclosure and keep your
dignity.
Example:
$150,000 Amount owed on a home
$135,000 Amount the home can be sold for after all closing costs and property taxes
$15,000 Amount the payoff is “Short”
Contrary to popular belief, lenders do not want to foreclose on your property!
They know that the vast majority of the time, even in good markets,
they will probably end up losing money on the home. A Short Sale allows
the lender to recapture a respectable amount of their original loan and
avoid the additional legal fees, eviction process, home refurbishing,
sale process and Realtor commissions associated with a foreclosure.
|
 |
| So,what happens to the “Short” balance you might ask? Sometimes the
lender will just refinance the remaining balance into an unsecured
loan. Many times the lender will “forgive” the remaining debt, meaning
the home seller doesn’t have to pay it back at all. I've seen lenders willing to walk away from $10,000, $20,000 or even more. (You will need to
consult with an attorney and/or CPA to determine how debt "forgiveness"
can affect your tax liability.) A Short Sale benefits both the
mortgage company and the homeowner because the mortgage company will
usually lose less and the homeowner avoids a foreclosure on their
credit report. |
"I am sooo happy and relieved. You helped me do something other Realtors told me couldn't be done and I avoided foreclosure!
I can't thank you enough!"
MF, Springfield Area
|
Lenders will usually require a fair amount of information before they
will approve your "short sale" request. Usually they will pull a
current copy of your current credit report and will request copies of
paycheck stubs, your last two years of W-2’s and income tax returns,
copies of two to three months worth of bank statements and possibly
retirement account statements. The lender does not necessarily have to
approve your Short Sale request. They may feel it is in their best
interests to take the property through foreclosure. There are no
guarantees with a Short Sale, but it is certainly better than a
guarantee of foreclosure. Thousands of people are simply walking away
from their properties in deflated real estate markets because they did
not know their options. The results can be devastating to their credit
for years to come. Don't be one of these people. Call me at
417-862-2588 and I can help you decide if a Short Sale is right for
you.
Jim Stewart, President, Oz Sold It |
"Jim, you are my favorite person ever! I really thought there was no help for us but you were there to work with us and our lender. Words cannot explain the hope you have given us. Thank you, so much!
KW, Springfield Area
|
|
Sell Your Home! 
