Please call Avery Piantedosi, short sale specialist for Oakland, Macomb and Wayne county Michigan for a free, private phone consultation at any time: 248-670-4064. I am here to help you!
Navigating Short Sales: What to Do When the Sale Price Leaves You Short
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
When a loan modification still isn't enough to relieve your financial problems, a short sale could be your best option.
Hire a qualified Agent. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.
A qualified real estate professional can:
•· Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
•· Help you set an appropriate listing price for your home, market the home, and get it sold.
•· Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
•· Ease the process of working with your lender or lenders.
•· Negotiate the contract with the buyers.
•· Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can't sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale "package" that accompanies any offer typically must include
•· A hardship letter detailing your financial situation and why you need the short sale
•· A copy of the purchase contract and listing agreement
•· Proof of your income and assets
•· Copies of your federal income tax returns for the past two years
Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender's review of the short-sale package can take several weeks to months. Some experts say:
•· If you have only one mortgage, the review can take about two months.
•· With a first and second mortgage with the same lender, the review can take about three months.
•· With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender's loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
•· You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can't pay back the balance, talk with your real estate attorney about your options.
•· Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
•· Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
For more information please contact me at any time! My direct contact number is: 248-670-4064. I can help you!
Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.
Call 1-248-670-4064 FOR A PRIVATE, FREE PHONE CONSULTATION.
I am a Detroit Metro Area Short Sale Specialist and a licensed realtor in Michigan. I specialize in short sales and have years of experience working with lenders to obtain reduced payoffs on mortgages.
I can help you avoid foreclosure, educate you on the alternative options with your lender and handle all the details involved in a successful short sale. I can also educate you on two of the most important issues when doing a short sale: deficiency judgments and tax implications.
Defaulting on your mortgage or not being able to sell your home can be a difficult situation. Many homeowners know they are heading into default, even if they are not behind on payments yet, or may already be in foreclosure. Most homeowners are unaware that they do have options before their bank or Mortgage Company takes back their house. A short sale can minimize damage to your credit and allow you to sell your home quickly- even in this market.
My clients experience these benefits:
When is it a good idea to negotiate a short sale?
My short sale services include:
I can also help you educate yourself about some of the potential negative aspects of a short sale:
For a detailed package of information, please contact me via email: averylp@comcast.net, or, by phone: 248-670-4064 (mobile). 248-575-3222 (office).
You can also visit my website for more information at: www.averysellsproperty.com
Please contact me for a free, confidential consultation at any time!
We work with clients in and around Michigan, including Addison, Allen Park, Ann Arbor, Armada, Auburn Hills, Augusta, Barton Hills, Belleville, Berkley, Beverly Hills, Bingham Farms, Birmingham, Brandon Township, Bridgewater, Brighton, Bruce, Brownstown, Bloomfield Hills, Bloomfield Township, Canton Township, Centerline, Chelsea, Chesterfield Township, Clarkston, Clawson, Clinton Township, Cohoctah, Commerce Township, Conway, Davisburg, Dearborn, Dearborn Heights, Deerfield, Detroit, Dexter, Ecorse, East China, Eastpointe, Farmington Hills, Ferndale, Franklin Village, Fraser, Freedom, Flat Rock, Flint, Fowlerville, Garden City, Genoa Township, Gibraltar, Green Oak Township, Gregory, Grosse Isle, Grosse Pointe (s), Groveland, Hamburg, Handy, Harper Woods, Harrison Township, Hartland, Hazel Park, Highland Township, Holly, Howell, Huntington Woods, Huron, Independence Township, Inkster, Iosco, Keego Harbor, Lake Angelus, Lake Orion, Lakeville, Lathrup Village, Lenox Township, Leonard, Lima, Lincoln Park, Livonia, Lodi, Lyndon, Macomb Township, Madison Heights, Manchester, Marion, Memphis, Melvindale, Milan, Milford, Mount Clemens, New Baltimore, New Haven, New Hudson, Northfield, Northville, Novi, Oakland, Township, Oak Park, Oceola, Orchard Lake, Orion Township, Ortonville, Oxford, Pinckney, Pittsfield, Pleasant Ridge, Plymouth, Pontiac, Putnam, Ray Township, Redford, Richmond, River Rouge, Riverview, Rochester Hills, Rockwood, Romeo, Romulus, Rose, Roseville, Royal Oak, Salem, Saline, Scio, Sharon, Shelby Township, Southfield, Southgate, South Lyon, Superior, Springfield; Township, St Clair Shores, Sterling Heights, Sylvan Lake, Taylor, Troy, Trenton, Tyrone, Unadilla, Utica, Van Buren, Walled Lake, Warren, Washington Township, Waterford Township, Wayne, Webster, West Bloomfield, Westland, White Lake, Whitmore Lake, Wixom, Woodhaven, Wolverine Lake, Wyandotte, York, Ypsilanti. With coverage along with the rest of, Oakland, Oakland County, Wayne, Wayne County, Michigan, Macomb, Macomb County, Livingston, Livingston County, Washtenaw, Washtenaw County. Information is available on any of the following: Buyers Broker, Buyer Broker, Buyer Broker Michigan, Fixer Uppers, Michigan MLS listing, Michigan search MLS, Wayne MLS Search, Oakland MLS search, Oakland County Real Estate, Michigan MLS real estate listings, Michigan free MLS listing, Washtenaw MLS, Macomb MLS, How to Sell your home, Home search, homes for sale, find rental property, Michigan real estate listings, foreclosure listings, free foreclosure listing, free foreclosure listings, Loan Officers, some people refer to this new system in the follow words: MLS, MLS search, MLS number, Mortgage Brokers, Mortgage Banks, real estate MLS, MLS real estate listing, MLS soccer, MLS alliance, MLS online, MLS status, Mortgage Broker. 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Oakland, Wayne and Macomb County Short Sale Specialist: Please Call: 248-575-3222
What is a deficiency judgment? What are the tax implications of a short sale?
I am a short sale specialist in Oakland County Michigan. I've been learning about and working on short sales before I even got my real estate license. Back then, the average person didn't know what a short sale was and most realtors had no idea either.
Times have changed and because of the dramatic decline in Michigan real estate, a lot of people have lost a significant amount of equity in their homes. This has made the short sale an attractive option to many people seeking to sell their homes. However, it has also lead to a lot of misconceptions and misinformation regarding what a short sale is and some of the other issues involved.
The most common questions I get are regarding deficiency judgments and the tax implications involved in a short sale.
There is a difference between a DEFICIENCY and a Deficiency JUDGEMENT. When you sell your home for less than what you owe in a short sale, that difference is a deficiency (example: you owe $200k on your home and you short sell it for $100k- your deficiency is $100k). A deficiency judgment is a court action taken by your lender against you to recover the deficiency amount. A short sale will help you avoid this action due to the fact that negotiations happen before this can occur.
Here are some links regarding the mortgage debt relief act and the tax implications of a short sale:
http://www.irs.gov/irs/article/0,,id=179073,00.html
http://www.irs.gov/individuals/article/0,,id=179414,00.html
http://www.irs.gov/taxtopics/tc431.html
Although this is great information, it is always advisable to consult with a tax professional regarding your own particular situation.
I will be updating this blog on a regular basis with information about the complex and evolving field of short sales. As always, if you have a question or would like a private consultation regarding your own property please contact my office at 248-670-4064 or email me at: averylp@comcast.net I am here to help!
I am starting this blog because of my specialization in short sales in the Metro-Detroit Michigan area and the lack of accurate information out there surrounding this new and fascinating field.
I am a short sale specialist in Oakland, Wayne and Macomb Counties located in Metro- Detroit Michigan. I've been learning about and working on short sales before I even got my real estate license. I started this journey about eight years ago. Back then, the average person didn't know what a short sale was and most realtors had no idea either.
Times have changed and because of the dramatic decline in Michigan real estate, (and in many other areas in the country) a lot of people have lost a significant amount of equity in their homes. This has made the short sale an attractive option to many people seeking to sell their homes.
However, it has also lead to a lot of misconceptions and misinformation regarding what a short sale is and some of the other issues involved. The most common questions I get are regarding deficiency judgments and the tax implications involved in a short sale.
There is a difference between a DEFICIENCY and a Deficiency JUDGEMENT. When you sell your home for less than what you owe in a short sale, that difference is a deficiency (example: you owe $200k on your home and you short sell it for $100k- your deficiency is $100k). A deficiency judgment is a court action taken by your lender against you to recover the deficiency amount. A short sale will help you avoid this action due to the fact that negotiations happen before this can occur.
Here are some links regarding the mortgage debt relief act and the tax implications of a short sale:
http://www.irs.gov/irs/article/0,,id=179073,00.html
http://www.irs.gov/individuals/article/0,,id=179414,00.html
http://www.irs.gov/taxtopics/tc431.html
Although this is great information, it is always advisable to consult with a tax professional regarding your own particular situation.
I will be updating this blog on a regular basis with information about the complex and evolving field of short sales. This will also include actual short sale cases I am currently working on.
As always, if you have a question or would like a private consultation regarding your own property please contact my office at 248-670-4064 or email me at: averylp@comcast.net. You may also visit my website: www.averysellsproperty.com
I specialize in short sales (pre-foreclosure sales). I have been closing short sales for eight years and have dedicated my real estate career to this field for the past two years.
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