Who Should Consider a Short Sale?
The party who will be most greatly affected by a Short Sale is the Property Owner/Seller. The Seller in many Short Sale situations is facing some type of financial difficulty that has made keeping their mortgage current difficult, if not impossible. Among the most common reasons that Property Owners face financial difficulties related to their property and mortgage are:
- Loss of Income
- Illness/Medical Bills
- Marital Problems
- Increased Mortgage Payments
Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.
A short sale can also be the best option for homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.
One of the biggest concerns that Property Owners have in a Short Sale is determining what the financial, credit and tax implications will be. In some cases, the difference between what is owed on the mortgage and the net proceeds of a Short Sale are forgiven by the lender(s), and in others the homeowner must make arrangements with the lender to settle the remainder of the debt. To determine how your situation would be handled, please email RosaAgencyRealtors@gmail.com or call me at (917) 518-7861.