Short Sales

If you are a buyer, short sales, pre-foreclosures and foreclosures are very affordable ways to purchase a property for tremendous value. The short sale process may take quite some time, up to six months, but for buyers looking for bargains at unbelievable prices, this is the time to buy in Arizona!

A short sale is an agreement between the current owner of a home and the lender. In a nutshell, a short sale is when the bank accepts less money than is owed to them and considers this amount “paid in full.” Since deficiencies and IRS tax rules may vary and are complicated, it is always best to discuss short sales with an attorney and tax consultant.

If you are “under water” in your home and find yourself struggling to make the mortgage payments, a short sale might be a good option. Working with a professional real estate agent who can help you through this process is imperative. Contact me today if you would like a confidential consultation.

Common Myths About Short Sales

Myth #1. It takes forever to get a short sale done.

It used to take "forever," but now the lenders have initiated systems that make the process more efficient. We are seeing approvals in as litle as 45 days!

.Myth #2. A short sale is the same as foreclosure.

Not true! With a short sale, you are in control of the sale and it is not as negative on your credit rating as a foreclosure. You may qualify to buy another home with  a Fannie Mae backed mortgage in as little as two years! The wait for FHA is three years. A foreclosure may mean five to seven years.

Myth #3. I will receive a 1099 from my lender as income for the difference and have to pay the taxes on the difference between what was owed and what the sale price was.

A personal residence is exempt from mortgage debt relief until the end of 2012 on a federal level. You might receive a 1099 from a lender on a home-equity line of credit, but it is important to discuss your options and situation with a tax advisor.

Myth #5. Banks prefer to foreclose rather than do a short sale.

Not usually. Banks are run like a business and since it usually costs more for them to do a foreclosure, they would prefer a short sale.

Myth #6. Most realtors can do a short sale.

Not really. It takes a lot of experience and a team approach to do them with success. The right realtor, title agency and a consulting attorney make it a huge success many sellers. Finding out your options and whether a short sale is right for you is what you should expect from a realtor. Don't trust your short sale to be handled by a rookie! And before you sign any legal agreements with the lender about a short sale, legal counsel is always advised.

Myth #7. Short sales are too much trouble.

Again, let your realtor do the work and be your guide from beginning to end of this process, so you can sell your home and move on with your life! We can take the "trouble" out of short sales.