Six questions to consider if a short sale is in your future:
- Do you understand the difference between a short sale and a foreclosure?
- Have you considered a loan modification?
- How would you find a qualified team to assist you?
- What documentation do you need to prepare?
- How much time do you have?
- Will a short sale solve all your financial problems?
If you are contemplating a short sale, the above questions suggest a process with very specific steps. It is important to be aware of the potential benefits as well as the risks and ramifications of a short sale. In a nutshell, here are the answers to these six questions:
- A short sale exists for when the net proceeds from the sale of your home will not cover the costs of your current mortgage(s) and the costs to sell. If you do not have the other assets to cover the difference, then a short sale may be an option. In a foreclosure, the lender takes title of a home through a lengthy legal process and then sells it.
- A loan modification may work for you if you are having financial difficulties and your lender offers a program to assist you.
- Typically, a short sale team will be compromised of a real estate professional, a real estate attorney, and a tax advisor. Be sure the professionals you select are experienced in short sales.
- Lenders provide short sale packets with a list of the necessary documents.
- The process can take a couple to several months.
- There are many implications a short sale may have on your future financial status, but it is not a guarantee it will solve all your problems.
It is important to be well-informed and diligent when pursuing a short sale. Our best advice is to get the best possible professionals to assist you. There are many services available to assist individuals and families who are considering a short sale, and the Tami & Steve team is well-versed in all of them.
