Short sales are on the news every day, but many people still don't understand what they are. Very simply a short sale is when the lender who holds the mortgage allows you to sell your home for less than you owe. So if your home is now only worth $200,000 but you owe $250,000, and some one offers you $175,000, the lender says OK, we'll accept $175,000 and you the homeowner are considered paid in full.
Are all short sales this easy? NO! Absolutely not. First, the lender wants to know why they should accept less than you owe. As the homeowner, you have to be able to show why you can't make your mortgage payment anymore. That means you'll have to provide a lot of information like bank statements, tax returns, paycheck stubs and a letter explaining why you need to sell. Just because your house isn't worth what it was IS NOT a good enough reason. And .... you must be using this property as your primary residence. If this is an investment property, the lender MAY let you short sale it, but they may pursue you for the amount of money they lost (what you sold for vs what you owed). OR they may send you a form that also goes to the IRS and you may owe taxes on that amount of money. If this happens, you need to check with your tax or financial advisor.
OK, you submitted all the paperwork to your lender, and they agreed that you're in a bind and
say you can short sale your property. They may even tell you what they'll accept. PHEW!!!!! That's a relief, right? Not quite. Now you actually have to sell your house. There is no short sale unless there's a buyer.This is where its best to rely on a real estate professional who can help you prepare your short sale package for the lender, negotiate with the lender so they will not only agree to the short sale but agree to a reasonable price so you could actually have a chance to sell, and then market the property to get a buyer for it. Many experienced real estate agents have buyers who are in the position to get a great deal, and will take the opportunity to get a well-priced preapproved short
sale. Most lenders also require you to have your property listed with a real estate professional so they feel that your property is being properly marketed and has the best chance of being sold so they don't have to take it back.If this is the situation you're facing, don't do it alone. If you need assistance or a referral to a qualified short sale specialist in your area, feel free to contact me and I'll assist you with someone who is experienced at this process in your area. Not all agents are familiar with this detailed and complex situation or can help you get everything you need done. You are not alone and it is important to rely on a specialist in this difficult time.
Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
