What are some of the positives to buying a short sale? No ForeclosureForeclosures can be an extremely distressing process for a family. It can take anywhere from six months to over 2 years for a foreclosure to complete. You can opt to file a deed in lieu of foreclosure or seek the assistance of a qualified Realtor in pursuing the Short Sale process.Maintaining a consistent communication with the financial institution(s) will provide some relief and control over the situation. By opting to seek a short sale, you lessen increased financial burdens, increased hardship, more damage to your credit report, and ability to cancel a loan that has caused significant financial hardship for you and your family.
Skilled Professionals will work with you at no chargeYes, it is true. Why would a Realtor assist you in processing a short sale transaction knowing that you do not have the ability to pay them for their valuable time and services provided? Realtors do make a commission when selling a short sale, although it may be a lesser amount than what they are used to, they still receive some sort of payment. With the real estate market having been flooded with several hundreds of short sales and foreclosures, it is becoming inevitable for a Realtor to avoid short sale transactions. Also, Realtors understand the process, they empathize with the homeowners and many Realtors truly care about helping people with their real estate transaction, irregardless of the type of transaction. It is part of their vision to maintan a large presence within the Hamoton Roads communities and a stronger real estate market. Improving the real estate market is always in the best interest of the Realtors. Minimizing damage to your credit score Proceeding forward with a Short Sale is a far better plan than abandoning your home or risking Foreclosure.A Short Sale can have far less damaging effects to your credit than a Foreclosure. And the ability to bounce back and purchase a new home with a new mortgage after a few years is realistic and something to look forward to. Through placing specific language into the contract, you can avoid repayment of the difference owed to the bank through a promissory note or repayment plan.It will require Realtor with a strong skill set and experience in processing short sales. If you are an active duty military member who had to sell their home through the Short Sale process, you may have special benefits through the Veterans Affairs that will make the process less damaging on both your credit and eligibility status. Contact your Veteran Affairs regional office for further information or contact Rebecca Keeney for a confidential appointment to discuss these additional benefits. You do not have to be in default to qualify for a Short Sale.
This is a misnomer. You do not have to be in default to get approved by your financial institution for a short sale. Being late >30 days, >60 days, and >90 days is what causes most of the damage on your credit report. If you find yourself in unfamiliar territory and facing significant financial hardship making it more and more difficult to maintain your current monthly mortgage, contact Rebecca Keeney to discuss the possibility of a Short Sale or even a Loan Modification. I have helped many homeowners in the past initiate the paperwork through their financial institution to stop a foreclosure and start the short sale process. And through the cooperation of some savvy Mortgage Officers have had the pleasure of helping people keep their homes through the Loan Modification process. You may not need to pursue a Bankruptcy
A bankruptcy can be very damaging to both your credit and future applications for credit. Creditors will want to know if you have ever had a bankruptcy in your lifetime. In fact, many employers are leaning towards background investigations and will want to know if you have filed bankruptcy or experienced a foreclosure. It is your right to not provide such details, however, it may cost you a really great job. By pursuing a Short Sale, you can possibly escape the need for filing bankruptcy. This will help your credit in the long run as well as your future employment. The many Cons of processing a Short SaleThe financial institution(s) may refuse to grant the Short Sale. Your credit may suffer greatly. Your financials will be under a microscope by the financial institution and you will be required to submit all your confidential financial information to your Realtor or Representative processing the Short Sale on your behalf. Keep in mind, that Realtors are very familiar with this process and respect your privacy immensely. Your file is handled with the utmost discretion at all times and is held under lock and key.Realtors have a fiduciary responsibility to look after your best interest at all times. Also, it is wise to work with an Agent or Realtor that understands the rules and regulations of the Multiple Listing Service. Sometimes advertising your home as a Short Sale can slow the progress as many buyers are unwilling to view Short Sales. However, it takes just one buyer to fall in love with the features of your home, short sale or not. The Real Estate Information Network states very clearly that once a short sale is approved it must be listed as such in the MLS. However, a Short Sale is only approved when the bank send the approval memorandum. It would be entirely up to the homeowner if they wish to advertise their home as a Short Sale prior to this memorandum being issued by the financial institution. This is a very important detail to consider when marketing a Short Sale, and one that is often overlooked. Property ConditionBanks typically will not make repairs. However, it is not impossible to negotiate this. There have been properties, on a case by case basis, that have had repairs made by the bank in order to proceed forward with the sale. This is also true of tax liens and other liens against the property. Banks will sometimes negotiate to pay a portion of the liens in order to liquidate the asset. This is another reason why it is so important to have a skilled agent working with you. Any damage to the property that will be required by the buyers lender to be repaired will have to be negotiated and either the homeowner, buyer or financial institutions will have to make the necessary repairs in order to move forward to a closing. Another factor to consider is that it may be a crime to remove certain appliances from the home.You may want to consider this before removing anything from the home. Understanding what appliances are considered personal property and which are not will greatly help you make this decision. The "wait period"
With the damage to your credit, you may have to wait 2-3 years before being eligible for some types of loans. Wherever you move to during this "wait period", keep in mind the importance of paying your bills on time. This includes utilities and other types of loans. Tax ConsequencesThere may be tax consequences. The financial institution may forgive the debt and will issue a 1099 for the amount of debt forgiven. This form is sent to the IRS to allow the bank to write off the loss. The IRS treats the forgiven debt as a taxable income which means you will need to pay taxes on the amount owed. Look for this notice as it may take more than a year for this to be processed. Consult a tax accountant or the IRS for details on legislature involved with a Short Sale. It is strongly recommended to negotiate into the contract a provision that states that the sale is contingent on the financial institution not seeking repayment or a promissory nite. This clause may be helpful for the Seller, bt may possibly harm a Buyer, so be sure you understand what this statement means before signing a contract. It should be explained to you and clarified in detail. Basically, a Seller can choose not to continue with the short sale and allow the home to go to foreclosure if the financial institution refuses to accept this clause. It may compromise the transaction and any monies invested by either party to the contract. For more information, please contact Rebecca Keeney to arrange a confidential appointment to discuss your options. A Short Sale is not always SHORTA short sale is not short. It is a long process and largely dependent on the submission of a thorough and complete package being sent to the financial institution(s) and in a timely manner. Ensuring that you communicate promptly with the bank, submit responses quickly and accurately are a must. Being detail oriented is a necessity.Processing a Short Sale is a very serious transaction and requires a skill set beyond that of a typical Realtor. It is god to ask your Realtor how many Short Sales they have processed and how many years they have had processing short sales. However, keep in mind that some Agents are more advanced learners and although they have not conducted numerous short sales, they may have had the ability to learn in great detail valuable information that is required to process a successful transaction. Many Agents are unfamiliar with the portals and computerized databases and systems in place by 3rd party vendors contracted through financial institutions top process short sales. Financial institutions are inundated with thousands of short sale files and may not be able to efficiently process them all in a timely manner. Using a 3rd party vendor is common practice and the comprehension and ability to manuever through these computerized systems is a must.
There are so many details involved - more than what the average homeowner is aware of. It would be my pleasure to meet with you to explore what possibilities best fit your needs. My goal is to help you through the Short Sale process and assist you in placement into a new home that meets your criteria. 
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No Foreclosure on your Record
