Short Sell Your House – 7 Steps That Helped Avoid Foreclosure
Short selling your home is not a decision you should make lightly. It is often a difficult and long process. If you are successful, the difference between what you sell the house for and what you owe on the house is forgiven. You’ll also avoid a foreclosure on your record.
Disclaimer
I am not an attorney. You should seek professional council for the issues discussed here!
Step 1 – Get Educated
You need to know your options when it comes to your home. If you want to keep your house, but can’t make the payments and you owe more than your home is worth, you may look into filing bankruptcy This will stay the foreclosure process (not forever) and may allow you to stay in your home and repay your lender under different terms.
Deed in Lieu
If you owe more than the home is worth, this is not an option for you. Deed in Lieu means that you give up the house to the bank and walk away. Ie, you give up the deed instead of facing foreclosure.
Short Sale
If you owe more than your home is worth, and don’t want to declare bankruptcy or face foreclosure, then a short sale of your home is the best option. A short sale does have potential tax implications.
Step 2 – Get Some Help
This is probably the biggest tip I would give to people who want to sell their home in a short sale. FIND AN EXPERIENCED REAL ESTATE AGENT WHO HAS DONE A SHORT SALE BEFORE. Your real estate agent will be able to deal and negotiate with the mortgage company(ies) on your behalf. An experienced short sale agent will give you a much better chance of successfully short selling your home.
Because there is often so many different entities involved in a mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc) you really don’t want to do this on your own, with no experience. Plus, you’ll never have any out of pocket expenses to pay an agent, as everything is essentially paid by the lender.
WARNING! Just because an agent says they specialize in “short sales” does not mean they have actually successfully done one! There are many classes agents attend regarding short sales, but nothing compares to real world experience.
Step 3 – Get Started Now
The longer you wait to get started with the short sale process the less chance you have of success. Every state is different with their foreclosure process. You need to decide quickly to start the short sale process if you’re getting behind on your payments, or have already received a notice of default.
Step 4 – Follow Instructions Exactly
An experienced short sale agent will tell you what you need to do to get the house ready to sell. Don’t get too hung up about the price. If the agent wants to set a low price on the house, there is a reason behind that.
In my own short sale, we priced the house pretty low and got an offer very quickly. You need a buyer that is willing to stick around for a super long closing or changes to the agreement. In my case, it took almost 4 months from when we got the offer to when the closing took place. Don’t get hung up about the price, all you should care about is getting the place sold.
Step 5 – Know The Tax Implications
Congress recently passed and the president signed a law that likely releases you from any tax implications of a short sale.
Talk to a qualified tax attorney or CPA about this for your particular situation. Your real estate agent should know about this! A good agent will have a quality referral for you to handle the tax implications of your short sale.
Step 6 – Prepare to move quickly
Because your closing date may not be set in stone, you need to be prepared to leave your home quickly if needed. You do not want to end up like me and live in your office for 2 months! Trust me, it’s not fun!
A minimalist lifestyle is nothing to be ashamed of; in fact it should be venerated. Your possessions are just inanimate things; it’s the relationships in your life that really matter. OK, enough life advice! Sell anything you don’t need or haven’t used in the last 6 months on craigslist! The less you have to deal with on moving day the better.
Step 7 – Prepare yourself emotionally
If you are already in default, or have a foreclosure pending, this whole scenario and process of trying to short sell your home can be very emotionally draining.
You will receive solicitations from everyone and their mother. You may have people stop by your home while you are still there. It can be a very difficult process.
Make sure you have people in your life to talk to about your situation. You will need a support network to help through this time in your life. It will pass. And you are being proactive in seeking a short sale of your home. You are taking the right steps, and in time, everything will work out. I can’t promise it will be easy, but you will make it!
You Need An Experienced Short Sale Agent!
Vendiendo brevemente su casa no es una decisión que usted debe hacer levemente. Es a menudo un proceso difícil y largo. Si tiene éxito, la diferencia entre lo que usted vende la casa para y para lo que usted debe en la casa es perdonado. Usted también evitará un ejecución de una hipoteca en su registro.
El paso 1 – Sea Educado Debe saber sus opciones cuando viene a su casa. Si quiere mantener su casa, pero no puede hacer los pagos y usted debe más que su casa vale, puede estudiar insolvencia que clasificación Esto permanecerá el proceso de ejecución de una hipoteca (no para siempre) y puede permitir permanecer en su casa y devolverle a su prestamista bajo términos diferentes.
El paso 2 – Consiga Alguna Ayuda
Esto es probablemente la punta más grande que daría a personas que quieren vender su casa en un venta corta. ENCUENTRE a UN CORREDOR DE BIENES RAICES EXPERIMENTADO QUE HA HECHO UN VENTA CORTA ANTES. Su corredor de bienes raíces podrá tratar y negociar con la sociedad hipotecaria (ie) en su beneficio. Un agente experimentado en venta corta le dará una oportunidad mucho más mejor de exitosamente vender brevemente su casa.
El paso 3 – Empieze Ahora
El más largo espera para empezar con el venta corta procesa el menos fortuito que tiene de éxito. Cada estado es diferente con su proceso de ejecución de una hipoteca. Debe decidir comenzar rápidamente el proceso de venta corta si consigue atrás en sus pagos, o ya ha recibido una nota de defecto.
El paso 4 – Siga las Instrucciones Exactamente
Un agente experimentado de corta le dirá lo que usted debe hacer para conseguir la casa se prepara para vender. No también es colgado acerca del precio. Si el agente quiere poner un precio bajo en la casa, hay una razón detrás de eso.
El paso 5 – Sabe que Las Implicaciones del Impuesto
Congreso pasó recientemente y el presidente firmó una ley que liberaciones probables usted de cualquier implicaciones de impuesto de un venta corta.
El paso 6 – Prepare para mover rápidamente
Porque su fecha límite no puede ser puesta en la piedra, debe ser preparado para dejar su casa rápidamente si necesitado. ¡Usted no quiere acabar por como mí y vivir en su oficina por 2 meses! ¡Fíese de mí, no es divertido!
El paso 7 – Preparese Emocionalmente
Si es ya en mora, o tiene un ejecución de una hipoteca pendiente, este guión y el proceso enteros de tratar corto vender su casa muy puede estar desaguando emocionalmente.
¡Necesita a Un Agente Experimentado en Venta Corta!